Biotech Stocks Have Plunged So Far This Year

Biotech stocks are not performing well at least so far this year. In the past two years or so the sector was hot due to a variety of factors including discovery of vaccines for Covid-19, M&A, investors’ interest, etc. However none of that seems to be in favor of biotechs now. The following charts of the SPDR S&P Biotech ETF (XBI) show the dramatic decline in the sector YTD.

SPDR S&P Biotech ETF –  Year-To-Date Return:

Click to enlarge

SPDR S&P Biotech ETF –  1 Year Return:

SPDR S&P Biotech ETF –  5 Years Return:

Source: Google Finance

It remains to be seen if a catalyst emerges to help biotechs in the reminder of the year. Other ETFs like the iShares Biotechnology ETF (IBB) is down 16% and 21% YTD and 1 year respectively.


Disclosure: No positions

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