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Biotech Funds Bleeding Moneyhttp://www.barrons.com/articles/biotech-funds-bleeding-money-1508516705 Biotech Funds Bleeding Money Biotechnology sector funds notched another week of outflows. By Crystal Kim Oct. 20, 2017 Biotechnology stock funds, including the mutual and exchange-traded variety, suffered outflows of $382 million for the week ended Oct. 18. It's just a drop in the bucket given 101 funds have about $61 billion in assets in total, but the tide may be turning against the sector. Popular ETFs iShares Nasdaq Biotechnology (IBB) and SPDR S&P Biotech (XBI) are down 1.17% and 0.25%, respectively, so far Friday. Raymond James analyst Laura Chico noted that the sector's breadth ratio, a measure that compares the number of funds seeing inflows to ones seeing outflows, is falling. In a note published yesterday, she wrote: The breadth ratio moved lower over the prior week, decreasing from 0.64 last week to 0.53 this week. Historically, the breadth ratio rarely dips below 0.3, and when it does, it has been associated with trough Nasdaq Biotechnology Index (NBI) levels. Biotech stock performance could suffer if outflows continue. |
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