XBI - Biotechs Smashed: Reasons To Like Last Week's Sale Prices
Sell-Off in Biotech-Land
Last week, biotechs were blindsided Tuesday when it was announced that FDA Commissioner Scott Gottlieb will be resigning imminently. A broad index of biotech stocks ((BTK)) - not an ETF (which is managed) - dropped from an intra-day high of 5,123 to close the week near its low at 4,861. That's a drop of 5.1%. A large-cap biotech ETF (IBB) and small-cap-oriented biotech ETF (XBI) dropped more like 7%. Those compare to a 2% drawdown for the S&P 500 (SPY) and slightly more than 2% for the NASDAQ 100 (