XBI: S&P Biotech ETF

This is in a steady decline, after hitting ATH of $175 in Feb 2021, it is in steady decline and today hit $98. This is a past resistance level. If this holds, this may mark a good time and price to enter. If not $75. I have some $75 puts sold, but remember the past support doesn’t necessarily means that will hold this time, resistances are better support on the way down. In any case, it is down significantly (45%) from ATH and about 28% in the last 2 months. It is in oversold territory. May be worth a short-term bet, if it stops falling :slight_smile:

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Do you prefer XBI an equal weighted ETF to IBB which is market cap weighted?

IBB has top 10 holdings at almost 50% with AMGN at 9% and GILD at 7%.

XBI’s top 10 holdings is less than 10%, so probably is dominated by newer companies without earnings compared to IBB which gives greater weight to more mature companies with earnings.

XBI is down 37% vs IBB 15% over the last year. Over 5 years both are up around 50-55%.

I prefer IHI, the medical device ETF which has along history of beating S&P500. Over 5 years it is up 155% vs S&P500 (VOO) at 10% and QQQ at 198%. Of course its record is well known and it rarely trades at bargain prices.

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This is a technical call and not necessarily a call on the ETF (or its portfolio members).

XBI fun fact, down 18% and it is only Jan 18th !!!

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The stock hit 52 week high exactly 1 year ago. Has this ETF hit the bottom? ready to turn around?

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