So aside from the real lack of volume this name has a lot of positives going for it.
Last, we have
SPDR Biotech (XBI) - here are
the top holdings as of August 18- Imclone (IMCL) 5.8%
- Amgen (AMGN) 4.9%
- Genentech (DNA) 4.6%
- Amylin Pharma (AMLN) 4.6%
- Celgene (CELG) 4.5%
- Genzyme (GENZ) 4.2%
- Cephalon (CEPH) 3.8%
- Gilead Sciences (GILD) 3.6%
- Biogen (BIIB) 3.2%
- Vertex Pharma (VRTX) 3.1%
Another very diverse group and even less concentration in the top 10, as they make up 42.2% of the
ETF. Keep in mind these are fluid vehicles as the top 10 have changed weightings quite a bit from even
June 30. I assume
Imclone's jump to the top of the weighting has to do with
its recent buyout offer. So this is also a solid candidate, and its volume is a bit more attractive to us for ease of exiting or entering the position, or scaling in/out.
For comparative purposes I've posted charts below of the relative performance of the 3
ETFs over 2 time frames: 3 months and 6 months
3 months (click to enlarge)
6 months (click to enlarge)
In the 3 month period,
BBH has outperformed with a 25% gain since we had that huge move up in
Genentech (DNA) so it's a bit deceiving. The other 2 came in at 16-19% range. In the 6 month period
BBH and
XBI both came in at around a 25% gain with
FBT not far behind at 20%. Again, the action is relatively random as the portfolio weightings outside of
BBH are dynamic and we've had takeover action in the group.
I am keeping both
FBT and
XBI on the radar but due to volume will probably go with
XBI once (if) this sector gives us a decent pullback. This will give us some
biotech exposure but without individual company risk, and expose us to an area that does not batter us with the daily "financials vs commodities" battleground that is getting weary at this point.
