Investing.com — Healthcare and biotech-focused mutual funds and ETFs recorded net outflows of $1.5 billion for the week ending Wednesday, according to data from Raymond James.
The outflows represented a 1.53% decrease in assets across 130 funds managing approximately $99.5 billion. Year-to-date net outflows have reached $1.98 billion.
This marks the second consecutive week of outflows from the sector.
The breadth ratio, which measures the number of funds experiencing inflows divided by those seeing outflows, increased to 0.48 from 0.45 the previous week.
Raymond James noted that when the breadth ratio reaches 0.3, the biotech sector has historically rallied by an average of 17.5% over the following six months. The ratio hit 0.28 on July 16, and the Nasdaq Biotechnology Index has risen approximately 36% since that date.
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