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Biotech Bulls Tiptoe Into 2022 After One of the Worst Years Ever

  • Sector’s 2021 performance has been eclipsed by S&P 500
  • Equal-weighted ETF is on pace for its worst year ever

Biotechnology investors and analysts are hopeful that the new year can bring a rebound for the industry which has been left in the dust by broader benchmarks. 

The Nasdaq Biotechnology Index has fallen flat in 2021, underperforming returns for the S&P 500 benchmark by more than 25 percentage points -- that is the third-widest gap since its inception in the early-1990s, data compiled by Bloomberg show. The equal-weighted SPDR S&P Biotech ETF (XBI), a fund specialists use to track the industry’s performance, is on pace for its worst year ever down 22%.