Bio ETF’s

By alanh, April 7, 2015

This thread is designed to allow investors to discuss the nature, strategies, tactics and stocks content of Bio ETF’s.
Before getting too engrossed in detail, please think about how we can create a structure for how to do this. I will publish a list of ALL known ETF’s. No one person could handle all the mentions within all the ETF’s on that list, so we will need a set of volunteers to adopt just one of them and regularly monitor it. No passengers here, I hope.
Rgs
Alan

This is a discussion topic or guest posting submitted by a Stock Gumshoe reader. The content has not been edited or reviewed by Stock Gumshoe, and any opinions expressed are those of the author alone.

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154 Comments on " Bio ETF’s"

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KennyG
Irregular
3530
Here is a new interesting bio index fund that is premiering today. I think it is something that I may consider buying into. I will also post in the new thread: A new stock index is debuting Tuesday to track the performance of companies developing cancer immunotherapies. The Loncar Cancer Immunotherapy Index (LCINDX) is an equal-weighted basket of 25 pharmaceutical and biotech companies developing (or already marketing) drugs which use the body’s own immune system to target and kill cancer cells. “The goal of the Cancer Immunotherapy index is to give investors a better understanding of the immunotherapy sector by… Read more »
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biggdan
Member
62

Some interesting thoughts on Bio from one of the best chartists I’ve found:
http://blog.kimblechartingsolutions.com/2015/04/bio-tech-key-support-test-in-play-following-reversal-pattern/
Worth keeping an eye on for sure.

arch1
Irregular
7782

I have been taking look at $xbi which tracks bio stocks on Standard and Poors as I have traders spiders in past,,SPDRS,,, although not in Bio. It has risen from $120.00 range to $220.00
in the last year,,,near double but has dropped and gained in last few days like its either going to break higher still or correct. I have not found yet which stox it trax, altho it just occurred to me to googlr SP BioTec h or similar. Will add more later. frank

jer_vic
Irregular
338

$XBI

https://www.spdrs.com/product/fund.seam?ticker=xbi
If you go to the Holdings tab, you can see the top ten list, and a tiny link to get the entire list of holdings via an Excel spreadsheet:
https://www.spdrs.com/site-content/xls/XBI_All_Holdings.xls?fund=XBI&docname=All+Holdings&onyx_code1=1286&onyx_code2=1718

Top ten holdings (as of Apr. 6, 2015 )
Dyax Corp. 1.75%
Esperion Therapeutics Inc. 1.43%
Prothena Corp. Plc 1.43%
Inovio Pharmaceuticals Inc. 1.36%
Auspex Pharmaceuticals Inc. 1.34%
Amicus Therapeutics Inc. 1.26%
ImmunoGen Inc. 1.25%
Orexigen Therapeutics Inc. 1.17%
United Therapeutics Corporation 1.15%
MiMedx Group Inc. 1.12%

arch1
Irregular
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I found linkhere

http://www.etfchannel.com/lists/?a=stockholdings&issuer=&symbol=XBI&sortby=&reverse=&rpp=20&start=0

any of those we follow are here in $xbi holdings including many unfamiliar to me..This looks like a good site to search from for other ETF holdings,,,I noticed they had a list headed be top ten insider holders.

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JoeS
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Frank was it you, Scorpio or Frenchy that brought up XPH when you were discussing a month or so ago? The chart for 6 months, YTD, 1yr, 2yr and 5yr are very impressive. I bought some back then. The “Joe bought some” chart is the only one that does not look like this ( / ) , but looks more like this ( \ )

biotechlong (btl)
Irregular
2790

Joe,
Here is an excerpt from my recent (March) post re ETFs – written in reply to John King’s inquiry:

“For those individuals who are somewhat risk averse – but nevertheless interested in investing in the biotech sector, a quality ETF such as SPDR S&P Pharmaceuticals (NYSE: XPH) may be a good fit. This is a non-leveraged exchange-traded fund (ETF) composed of some of the biopharma industry’s leading firms and a smattering of aggressive small caps.”

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arch1
Irregular
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Lawrence Heres to you…I have not done anything ETF in some time,,,,,,,,It is looking to me that perhaps I should have as ,if given my choice of five of the top ten i would likely pick the bottom two to buy. 🙂 frank

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hendrixnuzzles
Member
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They have 99 holdings. The strategy of the fund is equal weight so the larger holdings show what stocks have recently run up from their last adjustment. It does not reflect any opinion of the fund managers.

Remember that they are just a mirror of the NASDAQ stock population, they do not claim that their holdings are based on anything other than the company being in the sector and listed in the NASDAQ.

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hendrixnuzzles
Member
9819

Hi Benny,

Happy to help, will dissect/cover XBI.

I do not normally use ETFs unless it is in a sector I am clueless about. In biotech would much rather make selections from informed discourse (that is, Stock Gumshoe), and your plan to pick the brains of the ETF managers is just what I like to do.

The picks and ideas highlighted in this thread will be an interesting counterpoint to the ETF holdings.

Long NVS, PFE, CMVLF; and now ZFGN, MEIP, PARN, and GNFTF thanxs to the Shoe.
Got a regular mutual fund going in biotech.

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hendrixnuzzles
Member
9819
$XBI I just noticed that Frank already follows this one. So if he want to cover it going forward I’ll give it up for another. But this is what I found on XBI: GENERAL: ETF, open end, long only, fund, equal weight, 99 positions. Morningstar rating 4 stars. 1 yr growth +60%. Small cap 2.2 billion. TECHNICAL: Frank noted its recent growth. The chart went positive in June 2014 and has been an extended uptrend. There was a blow-off top in March 2015 that hit a high of 244. The price now seems to be consolidating above the 50 day… Read more »
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arch1
Irregular
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Larry I really did not volunteer to follow $XBI ,,,I just checked on it because it was a SPDR. as I have not done anything with an ETF in sometime. I am notoriously undependable for performing any meaningful work as various factors affect what I am able to do day to day. The report you just gave is what we need to decide if we give weight to one or more ETF’s. If you want to take on this chore and the criticism of those who do nothing I wish you God Speed and Best Wishes. 🙂 🙂 :),,,,3 smiles… Read more »
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hendrixnuzzles
Member
9819

Thanks, Frank, just didn’t want to step on your toes if you were going to sign up for it.
Thanks for the kind words. Best to you

hipockets
Irregular
1229

Just found this ETF Gummy StartUp. I’ve held IBB (the iShares Nasdaq Biotechnology ETF) for around two years, so I will report on it in the near future.

Along the same line, another idea might be to look at venture capitalists specializing in biotech. I’ll look into that, too.

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hendrixnuzzles
Member
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Because of how it is structured (equal weight) XBI does not look especially suited to our purposes. However I will start picking through their holdings anyway to see if I can find anything.

I would say that this looks like a good ETF for those who want a one click entry to the sector when and if you can get it close to NAV.

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hendrixnuzzles
Member
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$DYAX..number 2 in XBI This stock is overweight in the XBI because it just shot up 55% on FDA approval for safety and fast track designation for “rare hereditary disease” HAE which dumb laymen like me have never heard about. Also yesterday had a stock offer @ $ 27 and raised a bunch of money. http://www.marketwatch.com/story/dyax-shares-jump-40-on-best-in-class-potential-for-new-drug-2015-03-31 Didn’t do any fundamental research since they only have one approved drug and most of the future vigorish will be in this new thing, which I have no idea how to forecast. They also highlight a “phage library” of different peptides and fancy molecules… Read more »
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Gr8Full!
Irregular
11289

Sheet2!N8=HYPERLINK(“http://www.stockgumshoe.com/2014/05/microblog-hepatitis-with-a-c-right-now-someone-you-know-has-it-and-doesnt-know/#comment-N831575015″,”comment”) Best-Ben

ScorpioRising
Irregular
1019

Speaking of looking at biotech ETF’s for ideas, do you guys recall Doc’s posts in the Receptos thread? The Doc liked ISI Evercore’s Dr. Mark Schoenebaum. I can’t seem to find their picks, do you have to pay for their research?

http://www.stockgumshoe.com/2015/01/the-long-case-for-receptos/#comment-4192528

“The best biotech callers overall (after SG of course) are RBC, CS, BMO, ISI. DB would be better if they booted Robyn Karnauskas…she is just a master of the obvious. She used to hit it off with Melissa Lee on CNBC and now I think even Melissa realizes she’s a dunce.”

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arch1
Irregular
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Scorpio do you know which groups those initials represent,,,It seems you have identified
ISI Evercore or should I try to search them out,,,or have others already done so??

ScorpioRising
Irregular
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Off the top of my head, RBC is RBC capital management, CS is Credit Suisse, DB is Deutche Bank, BMO escapes me.

arch1
Irregular
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Looks to me those are for the big fish or whales,,,,not minnows like me,,,or perhaps i should be with the krill. I suspect their research comes with a substantial price.

ScorpioRising
Irregular
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BMO = BMO Capital Markets?

v4t1n4
Irregular
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BMO = BMO Capital Markets? = Bank of Montreal? Non?

jer_vic
Irregular
338

Oui, BMO == Bank of Montreal. Not sure what specific aspect Dr. KSS was referring to, but probably Capital Markets.

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arch1
Irregular
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ISI has morphed into Evercore,,,,an investment banking advisory group,,,,,,subscription sounds spendy as you cannot see their fees unless you give them Email so Sales sharks can put the pitch to you.

allisondbl
Irregular
708

Dr. KSS DOES like Schoenebaum and since I’m not paying for Evercore’s picks – they have clients and they charge for their insight – what I do is have a running up-to-the-minute google alert for him so that at least as soon as he or someone puts information into the netiverse with his name attached, I get it. As to information on ISI Evercore and Schoenebaum:

http://www.evercore.com/Investment-Banking/institutional-equities-research/fundamental-health-care

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hendrixnuzzles
Member
9819

The Learned One had conviction on Receptos. You could look it up.

arch1
Irregular
7782
Does this make any sense,,,look at the holdings of all the Bio ETF’s choose all the stox they hold in common and pick the those with the the largest number of holders,,,,,say 9 out of 10 hold $GILD 7 put that on our list ,,,,8 out of 10 hold ARWR,,ACHN,,,AKAO,,and put those on our list,,,,then 7 out of 10 & etc. as a starting basket…..I think we will find many are same as we are following already,,,so continue with those and investigate new ones that pop up. If one on our present list seems to be a dog on the… Read more »
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arch1
Irregular
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7 after $GILD should be &
Since we already know XBI holds all,,,,, we could leave it off the ones to explore???

allisondbl
Irregular
708
And actually here’s a thought: since I think we can ALL agree that We Trust In Dr. KSS, then any Bio ETF that either: A) DOESN’T have a SIGNIFICANT number of his PICKS and/or B) DOES have a SIGNIFICANT number of his PANS, should start with the assumption it belongs in our ETF Dungeon and have to prove its way out! Whaddya youse think? I will note that for ETFs that have, say, 99 holdings, this may not be possible as such a fund might be forced for other than purely scientific reasons to hold some stinkers, but maybe, again,… Read more »
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Travis Johnson, Stock Gumshoe
Admin
9418
There are some active funds out there in biotech, but be careful — ETFs are generally built to cover an indexed sector, not to pick stocks based on any scientific (or other fundamental) assessment. They want to match the performance of a sector, at least in the case of the big and broad biotech ETFs, not to pick the best companies. They’re generally indexed by market cap, meaning their largest holdings are simply the largest companies. If you want actively managed funds that discriminate based on quality of company or science, you’re looking for mostly open-ended mutual funds or a… Read more »
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Lulu
Irregular
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Allison, that is how I feel about Monsanto and its chemical cohorts.

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arch1
Irregular
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arch1
Irregular
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