With the benefit of hindsight (and returns data), it's now safe to say investors that were long biotechnology stocks or exchange traded funds at the start of the year while being short or out of consumer staples equivalents are not smiling.
Not with the SPDR S&P Biotech ETF (NYSE: XBI), the third-largest biotech ETF by assets, down almost 18 percent while the Consumer Staples Select Sector SPDR (NYSE: XLP) is up 6.4 percent year-to-date. A scenario where being down 18 percent in an ultra-volatile ETF like XBI while missing out on an easy 6 percent-plus with the low beta XLP does not sound fun.
As was noted in this space Wednesday, there are inklings biotech ETFs are primed for ...
/www.benzinga.com/trading-ideas/long-ideas/16/04/7813047/a-leader-laggard-long-short-etf-pair-trade alt=A Leader-Laggard Long-Short ETF Pair Trade>Full story available on Benzinga.com
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