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Ishares Nasdaq BiotechnologyIBBWAITJun 20, 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.
Using a 5-year chart, and looking at where the long term support is and their averages, this sector has broken down quite a bit. Wait and see what the new US administration does to this sector. It ran up tremendously for a number of years, and now we are in a correction mode. If Hillary gets her way, there is probably another leg down in this area. You could buy a half or a 3rd just to be in there, because it has corrected significantly from the highs.