Update-1 6/22 Mixed day with a few nice moves. Vaccine stocks are up:BNTX,MRNA ,NVAX.
- Our Recent Mid-Cap Picks: CRISPR Therapeutics (CRSP( of 0.32%, Cryoport (CYRX) up 8.47% to $66 on Partnership deal.
- Veracyte (VCYT) up 1.45% to $38.56.
- ARKG up 0.35 to $87.68.
Healthcare Portfolio Performance 6/18/21
We developed this mini Healthcare Portfolio as a Conservative but diversified approach to managing trades and investments in healthcare and biotech and focused on ETFs. Last week was among the worse weeks of 2021 but today most biotech stocks rallied with the IBB up 0.90%, the XBI up 0.95% and the XLV up 1.2%. Last week also saw a rotation out of cyclicals and value with metals , financials and energy getting crushed. But the rotation today went back to cyclicals.
Small caps were very strong today with the Russell 2000 up 2.16% to 2286.Biotech peaked in early February and we made a “risk-on” call about 3 weeks ago after the May sell-off.
Here are some key points regarding the Healthcare Portfolio YTD:
- Holding just 50% in IBB and 50% in XLV would give you a return of about 7%. That is about 4% lower than the S&P 500 YTD.
- To get higher returns in the portfolio you need to add small caps but the XBI is too volatile and is now down 5% YTD. So by adding the IWM to your Healthcare Portfolio you pick up some small cap healthcare exposure. I also trade ARKG for more beta in smaller caps.
- Our core positions in biotech is large cap biopharma with ABBV, BMY, GILD, MRK, REGN and RHHBY.Or the IBB.
- Last week we added the iShares U.S. Medical Devices (IHI) to the portfolio as we expect growth in medical procedures.
- Our two fund picks but not in the model are FBIOX and PRHSX but as you can see both underperformed. But the T.Rowe Price Health Sciences Fund (PRHSX) gives you more weighting on life science tools and diagnostics.
|10/25||%||1 mo.||12/31||%||% Perf||6/18/21||% Perf||2021|
|iShares NAZ Bio||IBB||136||25||143.22||2.27||151.5||11.9||25.7||158.77||4.81||172.6|
|iShares Russell 2k||IWM||163||10||184.37||16.56||196.4||30.9||18.3||222.13||13.3||234.42|
|SPDR S&P Bio||XBI||117||5||131.46||11.95||140.8||26.3||48||133.58||-5.11||174|
|T.Rowe Hlth Sci||
|SPDR S&P Pharm||XPH||51.94||-0.23||56|