Biotech Bull Market Update: Five Year Performance for Life Science Funds and ETFs

Biotech Bull Market: XBI is leader for 2017 and Over Five Years

The FBT First Trust Arca Outperformed Up 157% Over Five Years

In 2016 the Sector Underperformed After the 2015 Downdraft

Here is our July 2013 review of several top Life Science Funds and ETFs . Over five years below we have updated the performance* of those seven key investments. Keep in mind that the biotech sector had a severe correction in July 2015 and that mid-July date is still the top over a  5 year market cycle. Since 2013 ETFs have outperformed mutual funds but the devil is in the detail. Here is a later article in 2015 before the July 2015 five year top.

  • IBB $331.27, up 24.83% YTD, up 128.87% 5 years.
  • XBI $84.59, up 42.9% YTD, up 163.68% 5 years.
  • FBT $122.75, up 35% YTD, up 157.61% 5 years.
  • FBIOX $231.83, up 33.2% YTD, up 99.27% 5 years.
  • PRHSX $73.73, up 24.8% YTD, up 66.9% 5 years.
  • FBDIX $161.48, up 24.54% YTD, up 81.36% 5 years.
  • JNGLX $56.1., up 224%, up 79% 5 years.

*prices as of 9/21/17

There are other funds and ETFs that have come on the market since 2013 and we will include them in the future.

We recommended two ETFs, the IBB on 6/29/16 at $250 and the XBI on 1/31 17 at $64. The XBI can be volatile and is recommended for trading and rebalancing portfolios. See our other Portfolio picks.

As noted in the brief Yardeni report the S&P500 Life Science Tools and Services Index is up about 40% YTD. Key technology drivers have been molecular medicine sequencing and support to proliferating clinical trial management.

We remain bullish for life science stocks but major risks have been NIH budget cuts, macro events,Congressional drug pricing action and ACA reform that results in fewer patients.But healthcare stocks (XLV) overall remain in a bullish mode.

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