RT Journal Article
SR Electronic
T1 Biotechnology ETFs: Performance Analysis
and Demystifying the Correlation Matrix
JF The Journal of Wealth Management
FD Institutional Investor Journals
SP 88
OP 93
DO 10.3905/jwm.2013.15.4.088
VO 15
IS 4
A1 Manu Sharma
A1 Rajnish Aggarwal
A1 Esha Prashar
YR 2013
UL https://pm-research.com/content/15/4/88.abstract
AB The authors investigate the performance of biotechnology ETFs relative to the S&P 500 and NASDAQ Biotechnology indexes during the past five years. They show that the biotechnology ETFs and NASDAQ Biotechnology Index had higher five-year average returns than that of the market index. The five annual Sharpe and Treynor ratios also indicate that the ETFs and NASDAQ Biotechnology Index outperformed the market. The results also imply that the ETFs were highly correlated with each other and the NASDAQ Biotechnology Index but were least correlated with the market. These findings indicate that during the economic slowdown, the biotechnology sector generated lucrative returns for investors and outperformed the market.TOPICS: Exchange-traded funds and applications, performance measurement