Aristides Capital fully exited its $3.60 million position in the iShares Biotechnology ETF (NASDAQ:IBB) as per a November 13 SEC filing. The fund sold all 28,467 shares of IBB, completely liquidating its stake in the biotechnology-focused exchange-traded fund.
Top holdings post-filing include NYSEMKT: SPY at $53.02 million, NASDAQ: IBIT at $25.17 million, NASDAQ: GOOGL at $15.19 million, NYSE: CRC at $11.29 million, and NASDAQ: ITRN at $10.02 million. As of Friday, IBB shares were priced at $171.88, boasting a 28% increase over the past year.
IBB offers investors exposure to a wide range of U.S. biotech stocks, serving both institutional and individual investors seeking targeted biotech sector participation. The fund operates as a non-diversified ETF tracking a biotechnology sector index, emphasizing disciplined portfolio construction to manage sector-specific risk.
Exiting the broad biotech ETF IBB amid a strong run signifies a strategic choice to step away from sector beta. The ETF’s rebound, driven by large-cap biotech leadership, improving risk appetite, and interest in profitable platforms, has seen year-to-date gains surpassing 30%. The fund’s expense ratio is 0.44%, with exposure to over 250 names.
An Exchange-Traded Fund (ETF) is an investment fund traded on stock exchanges, holding assets like stocks or bonds. AUM refers to the total market value of investments managed by a fund or firm. Liquidating is selling all holdings in a particular investment, reducing the position to zero. Total return includes the investment’s price change and all dividends and distributions, assuming reinvestment. Benchmark index is a standard index used to measure fund performance. Index replication is a strategy where a fund aims to match a specific index’s performance.
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Jonathan Ponciano has no position in the mentioned stocks. The Motley Fool has positions in and recommends Alphabet, Ituran Location And Control, and iShares Bitcoin Trust. For more information on why Aristides Capital cashed out of the $3.6 million biotech ETF bet, visit The Motley Fool.
Read more at Yahoo Finance: Why This Fund Cashed Out of a $3.6 Million Biotech ETF Bet