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Biotech Fund Wipes Out Last of Its Gains Since Covid Started

  • The XBI dropped more than 60% from a February 2021 record high
  • Wall Street increasingly cautious on prospects for a recovery
Updated on

A biotechnology ETF extended losses Monday, erasing the last remnants of the rally that had made it one of the market darlings during the worst days of the pandemic.

The closely watched SPDR S&P Biotech exchange-traded fund, known by its XBI ticker, has now lost more than 60% since its February 2021 peak and is now on track to close at its lowest since early 2017. The 15-month slide is the longest selloff since the equal-weighted fund’s inception in 2006. The ETF fell 8.2% on Monday, the biggest drop since March 2020, to close at its lowest level since January 2017.