50% off Premium Yearly
Ishares Nasdaq BiotechnologyIBBCOMMENTMay 10, 2016Stock 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.
Biotech is a very volatile area of the market. This index has options on it. If you are a believer in Biotech, then you are really saying you are a growth investor that has a speculative bent that is looking for a real big move. Rather than paying $250 or so, you might want to think about getting an at the money call option, paying $20, and go for the ride. The worst case scenario is that you will lose $20.