Count biotechnology stocks and exchange traded funds among the once high-flying market segments that are struggling to start 2016. Of the just over 270 ETFs that hit 52-week lows on Monday, six of those funds were dedicated biotech funds.
That ominous anecdote underscores the current fragility of global equity markets because with biotech conference season here, this usually one of the seasonally strong periods for biotech stocks and ETFs. However, the current biotech sector malaise makes ETFs such as the SPDR S&P Biotech ETF (NYSE: XBI) look like contrarian bets, but that is not necessarily a negative thing.
The $1.8 billion XBI, the third-largest biotech ETF by assets, is an equal-weight ETF with a well-known tilt smaller, more volatile biotech names. Even with the recent struggles, potential catalysts linger for XBI ...
/www.benzinga.com/general/biotech/16/01/6134025/betting-on-a-biotech-bounce-with-a-familiar-etf alt=Betting On A Biotech Bounce With A Familiar ETF>Full story available on Benzinga.com
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