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Weekly Review of Biotech ETFs: IHI Positive, IBB Not So Good

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Jun. 13 2016, Published 11:24 a.m. ET

How did biotech ETFs do last week?

For the week ended June 10, 2016, the Markets remained sideways. The SPDR S&P 500 ETF (SPY) fell marginally by 0.1%. Biotech (biotechnology) ETFs had a mixed week, with the iShares US Medical Devices (IHI) performing the best. Below are the performances of four biotech ETFs:

  • iShares Nasdaq Biotechnology (IBB): fell 5%
  • Health Care Select Sector SPDR ETF (XLV): fell 0.7%
  • SPDR S&P Biotech ETF (XBI): fell 4.2%
  • iShares US Medical Devices (IHI): rose 0.9%

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20-day moving averages and year-to-date returns

Below are the trends of the four biotech ETFs for their 20-day moving averages as of June 10, 2016:

  • iShares Nasdaq Biotechnology (IBB): closed at $267.50; 20-day moving average was $271.90
  • Health Care Select Sector SPDR ETF (XLV): closed at $71.78; 20-day moving average was $71
  • SPDR S&P Biotech ETF (XBI): closed at $55.67; 20-day moving average was $56
  • iShares US Medical Devices (IHI): closed at $133.96; 20-day moving average was $131.40

XLV and IHI are trading above their 20-day moving averages. IBB and XBI are trading below their 20-day moving averages. On a year-to-date basis, IHI is still the leader among these four biotech ETFs. It has risen 9.4% followed by XLV with a fall of 0.4%, XBI with a fall of 20.7%, and IBB with a fall of 20.9%.

Fund flows

All four biotech ETFs saw the following positive net fund flows for June 3–9, 2016:

  • iShares Nasdaq Biotechnology (IBB): ~$114.6 million
  • Health Care Select Sector SPDR ETF (XLV): ~$448.6 million
  • SPDR S&P Biotech ETF (XBI): ~$84.3 million
  • iShares US Medical Devices (IHI): ~$6.4 million

Biogen Idec (BIIB), Amgen (AMGN), and Gilead Sciences (GILD) are some of the top biotech stocks these ETFs hold in their portfolios.

In the next part of the series, we’ll see why Centene is raising $500 million through senior notes.

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