iShares NASDAQ Biotechnology
ALTAR
Score™
0.4% info Recommen-
dation
AVOID
2019E    2020E
P/E
ratio
165.1x P/Sales
ratio
6.5x
P/BV
ratio
4.8x Div.
yield
0.6%


  • Description
  • Performance
  • Comps
  • premium Fundamentals
  • premium Valuation
  • premium Rating
The iShares Nasdaq Biotechnology Index Fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of companies primarily engaged in the biotechnology industry, as represented by the NASDAQ Biotechnology Index.

FUND BASICS
Category US Equities
Fund Sponsor Barclays Global Investors
Website www.ishares.com
Inception date Feb 09, 2001
Assets (mns) $7,748
Currency USD
Expense ratio 47 bp
Distributions Quarterly

FUND STRUCTURE
Regulation Open-Ended Fund
Custodian State Street Bank & Trust
Weighting Market Cap
Index replication n/a
Uses derivatives No
Options available Yes

SECTOR BREAKDOWN

 


CONSTITUENT BREAKDOWN
No. of constituents 215
Wgt avg mkt cap (mns) $38,183
Large cap (>$10bn) 55.8%
Mid cap ($2-10bn) 25.6%
Small cap (<$2bn) 17.5%
Developed mkts 99.2%
Emerging mkts 0.8%

TOP TEN HOLDINGS
AMGEN INC 8.4 %
GILEAD SCIENCES INC 7.9 %
VERTEX PHARMACEUTICALS INC 7.5 %
ILLUMINA INC 6.2 %
BIOGEN IDEC INC 5.1 %
REGENERON PHARMACEUTICALS 4.8 %
ALEXION PHARMACEUTICALS INC 3.4 %
INCYTE CORP 2.7 %
SEATTLE GENETICS INC 2.7 %
BIOMARIN PHARMACEUTICAL INC 1.9 %
Total 50.7 %

TOP COUNTRY EXPOSURE
UNITED STATES 87.9 %
IRELAND 3.6 %
BRITAIN 2.9 %
CHINA 1.8 %
NETHERLANDS 0.9 %
DENMARK 0.7 %
SWITZERLAND 0.6 %
SPAIN 0.4 %
CANADA 0.3 %
BELGIUM 0.2 %

HISTORICAL PERFORMANCE info

  Custom date range Compare to  
  thru


Standardized Annual Returns (thru November 30)
Year-to-date 1 year 5 years 10 years Since Incep.
24.3% 9.8% 3.6% 16.7% 7.4%

Market Correlations
versus... Beta R-squared
S&P500 1.33 58%
MSCI EAFE 1.14 35%
MSCI Emg. Mkts. 0.93 38%

Technical Indicators
Recent close $120.03
30d moving avg. $112.33
Annualized volatility 21.2%
Short interest (ETF) 27.2%
Short interest (Underlying) 5.2%
Relative strength (RSI) 76

Liquidity measures
Avg. volume (thou.) 2,497
Turnover 3.9%
Bid/Ask (% of price) 0.02%
ADV underlying (mns) $7,726

Distributions


FINDING ALTERNATIVE FUNDS

Below is a list of 20 potential alternatives to the iShares NASDAQ Biotechnology ETF based on the alternatives' overlap in portfolio holdings with IBB. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker: IBB Expense: 47 bp ALTAR Score™: 0.4%


ALTERNATIVE ETFs BASED ON OVERLAP WITH IBB
Ticker Fund
Name
Overlap1
vs IBB
(%)
Expense
ratio
(bp)
Savings
vs IBB
(bp)
ALTAR
Score™
(%)
ALTAR
vs IBB
(%)
BBH VanEck Vectors Biotech 55.1 35 12 4.5 +4.1
XBI SPDR S&P Biotech ETF 43.7 35 12 -4.4 -4.8
FBT First Trust NYSE-ARCA Biotechnology 43.2 57 -10 -0.7 -1.1
IEIH iShares Evolved U.S. Innovative Healthcare 42.8 18 29 4.4 +4.0
BTEC Principal Healthcare Innovators Index 37.5 42 5 -4.2 -4.6
BBP BioShares Biotech Products 34.8 79 -32 -3.7 -4.1
LNGR Global X Longevity Thematic 22.6 50 -3 3.3 +2.9
GNOM Global X Genomics & Biotechnology 21.3 68 -21 -5.2 -5.6
PJP Invesco Dynamic Pharmaceuticals 20.7 56 -9 9.3 +8.9
PBE Invesco Dynamic Biotechnology & Genome 20.7 57 -10 -0.5 -0.9
GDNA Goldman Sachs Motif Human Evolution 19.3 50 -3 1.0 +0.6
FXH First Trust Health Care Alphadex 19.2 63 -16 7.0 +6.6
FHLC Fidelity MSCI Health Care 17.3 8 39 5.7 +5.4
QQXT First Trust NASDAQ-100 Ex-Tech 17.1 60 -13 5.8 +5.4
VHT Vanguard Health Care 17.1 10 37 5.9 +5.5
BBC Virtus LifeSci Biotech Clinical Trials 17.0 79 -32 -11.1 -11.5
IDNA iShares Genomics Immunology and Healthcare 16.8 47 0 -4.3 -4.7
RYH Invesco S&P Equal Weight Healthcare 15.7 40 7 7.0 +6.6
IYH iShares US Healthcare 15.5 43 4 6.2 +5.8
JHMH John Hancock Multifactor Health Care 15.5 40 7 6.6 +6.2

1Overlap is the percentage of holdings by weight that are identical. For example, if Fund A has a 2% position in Apple, Inc. (AAPL) and Fund B has a 5% position, their overlapping position in AAPL is 2%.

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RESULTS & ESTIMATES

  2014 2015 2016 2017 2018 2019E 2020E
Sales per share ** ** ** ** ** ** **
Earnings per share ** ** ** ** ** ** **
Dividends per share info ** ** ** ** ** ** **
Book value per share ** ** ** ** ** ** **

 

Sales per share growth   **% **% **% **% **% **%
EPS growth   **% **% **% **% **% **%

Sales per share growth   **% **% **% **% **% **%
EPS growth   **% **% **% **% **% **%

OTHER FUNDAMENTAL METRICS

Long term EPS growth est. **%   Debt-to-equity **x
Asset turnover **%   Assets-to-equity **x

Return on equity

Revision activity*
*Six months ago = 100

Net margins

Compound annual growth rates

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VALUATION METRICS
  2018 2019E 2020E
Price-to-sales ** ** **
Price-to-earnings ** ** **
Price-to-cash flow ** ** **
Price-to-growth ** ** **
Price-to-book value ** ** **
Yield ** ** **

Historical valuation trends

Forward
multiple:
iShares NASDAQ Biotechnology
Relative
to:
S&P500 MSCI EAFE MSCI Emg. Mkts. Other ETF:

AVOID

Not worthwhile for most investors. A rating of AVOID is assigned to ETFs with ALTAR Scores in the lowest quintile (the bottom 20%) of their category. Often, funds in this category consist of stocks with little if any history or expectation of profitability, and as a result our fundamentally-driven analysis may not be relevant.

ALTAR Score™


Calculation of ALTAR Score™
Avg. Return on Equity 4.0 %
Divided by: Fwd. P/BV 4.7 x
Less: Expense ratio 47 bp
Equals: ALTAR Score 0.4 %
info More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS
COMPOSITE
RATING
1.40 CATEGORY
AVERAGE
1.56
 
The composite rating is a weighted average of analysts' consensus recommendations for individual ETF constituents, based on the following scale:

BUY = 1; OVERWEIGHT = 1.5, HOLD = 2; UNDERWEIGHT = 2.5; and SELL = 3.

Readers are cautioned that because analyst ratings tend to be inflated, the composite score may be more useful as a relative measure of sentiment between funds rather than as a stand-alone recommendation.
 

 

See RATING tab for calculation of ALTAR Score™
Risk & reward. Uses std. dev. as proxy for risk, ALTAR Score™ for return forecast.
Dividends paid by constituents to the fund. May differ from actual distributions to shareholders due to constituent changes, timing issues or other factors.
Monthly returns based on changes in price plus dividends. May differ from daily returns reported by funds. See below for standardized returns.