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The Nasdaq Biotechnology Index (Nasdaq: NBI) is designed to track the performance of a set of securities listed on Nasdaq that are classified as either biotechnology or pharmaceutical according to the Industry Classification Benchmark (ICB). Between 1/21/03 and 12/11/17, the index had a cumulative return of 548%, and an annualized return of 13%.
I am pleased to share Nasdaq's recent announcement of the results of the annual re-ranking of the Nasdaq Biotechnology Index. The re-ranking is effective prior to market open on Monday, December 18, 2017. There will be 198 companies in the index, including 54 new additions. You can view the full list of securities here .
Along with this performance was a substantial increase in assets under management (AUM) for IBB-the largest corresponding ETF that tracks the Nasdaq Biotechnology Index globally. In fact, the AUM as of 12/31/09 was approximately $1.5B and, as of 12/13/17, it is over $9.9B*. The largest year-over-year increase came between 12/31/13 and 12/31/14, which saw a jump of $2.5B.
Since its inception, the NBI has shown impressive performance over the years. In recent years, a more favorable regulatory environment combined with an aging population have become just a few of the factors corresponding to increased demand for biotechnology related company products.
Nasdaq continues to be a leader in biotechnology listings, including initial public offerings in the biotechnology and pharmaceutical arena. This year, 32 biotech companies listed on Nasdaq, raising $2.9B including the largest capital raise by a biotech company since June 2015 and the largest capital raise in healthcare for the year.
You can read more about the NBI performance here . If you have any questions, including how to leverage inclusion in the index, please do not hesitate to contact me at Jordan.Saxe@nasdaq.com .
The information contained above is provided for informational and educational purposes only, and nothing contained herein should be construed asinvestment advice either on behalf of a particular security, sector, or an overall investment strategy. Neither Nasdaq nor any of its affiliates makes any recommendation to buy or sell any security or any representation about the financial condition of any company. Statements regarding sector performance and specific companies are not guarantees of future performance. Actual results may differ materially from those expressed or implied. Past performance is not indicative of future results. Investors should undertake their own due diligence and carefully evaluate companies before investing. ADVICE FROM A SECURITIES PROFESSIONAL IS STRONGLY ADVISED.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
