Life Science Mutual Funds Compared to ETFs…January 2024 and Retrospective-Part I

Life Science Mutual Funds Compared to ETFs

We have written about Life Science Funds vs ETFs in our past articles.  Life science funds have been in a bear market since the recent peak in Q3 2021. The period from 4/20 through 2/21 were good years for biotech and medtech driven by innovation needs to combat the pandemic with huge demand for vaccines, therapies and clinical tests needed to fight COVID. The XLV has been flat since Q4 2021 whereas the IBB peaked in Q3 2021 with substantial losses off the 2021 peak  But the XLV has been in recovery mode since 11/23.

• The IBB gained 32.74% over the past 5 years.
• The XLV gained 61.84% over the past 5 years but has been relatively flat since Q4 2021.
• The QQQ gained 51.67% over I year and 153.95% over 5 years!

The easy gains in biotech were made from the financial crisis in 2009 thru Q3 2015.

Here are a few of our previous posts on the subject:

• Most recent was 2023 prior to the Q3 sell-off. Shows speculative blow-off top in XBI with longer term charts.
• Here is a review and analysis from June 2018 as the bull market was gaining steam.
• And earlier before the Trump years 2015 we compared total returns after a decent five-year run.

Stay tuned for PART II after the JPM Healthcare Meeting this week.

Disclosure LONG: XBI FSMEX, PRHSX, FBIOX.

Need to check performance because of data sources.