50% off Premium Yearly
Ishares Nasdaq BiotechnologyIBBHOLDMay 25, 2015Stock price when the opinion was issued
As of Jun 18, 2026. Market Open.
Healthcare sector outlook The sector has had a great bounce since March lows. A good way to play the COVID vaccine race. IBB is the best-known biotech ETF, but he does the XBI, because it's equal-weighted. XBI has had a great bounce. It's a great sector with reasonable valuations. The race for a COVID vaccine is a tailwind, of course. Biotech is a slow-growth area, which benefit from interest rates staying very low for the long term.
Biotechs mostly don’t pay dividends. When you get into a growth and momentum trade and the stock has doubled in a year or two, then it is not sustainable. He feels there is no value here. Look to take money off the table at some point, not put money in.