The challenge for many investors who are trying to diversify their portfolios is finding sectors or asset classes that don’t move in tandem together. One sector that has moved up—even as many equity indexes have fallen—is biotech.
Performance: Behind the Numbers
Over the past three months, even as the S&P 500 and other broad market indexes have generally suffered (the S&P 500 is down 0.62% to date) biotech stocks have generated impressive returns. The iShares Nasdaq Biotechnology Index Fund (IBB) is up almost 12.7% over this period, and the Folio Investing Biotechnology Folio is up 22% over this same 3-month period. For the trailing 12-months, the Biotechnology Folio is up 40% and IBB is up 23.8% compared to the S&P 500 which is up only 5.2%. Continue reading