With all the attention on coronavirus-related stocks lately, I thought it would be worth a look to see where investors have actually been putting their capital to work.  According to etf.com, a total of $17.1 billion was yanked out of U.S. equity funds during the week — but the largest biotech exchange-traded fund (ETF), IBB, added $3.19M to its year-to-date net inflows.

But with the overall trend toward equity outflows last week, XBI — one of the larger biotech ETFs, alongside IBB — added another $79.09 million in outflows to its existing year-to-date total of $99.24 million, despite the COVID-19 catalysts that drove so many sector components higher.

XBI is 0.47% weighted to Clovis Oncology (CLVS), by the way, which you can check out on this week’s video watchlist starting at 11:54.

But what’s interesting is that LABU, which is a 3X bull leveraged version of XBI, raked in $25.21 million in net inflows last week, reversing a portion of its $83M in YTD net outflows. So traders were yanking cash out of XBI, but simultaneously pouring money into the “juiced-up” version of XBI as coronavirus plays took off.


Data courtesy of etf.com

The action in biotech fund flows really highlights the high-risk, high-reward nature of this market right now. There’s a lot of money to be made on action like this provided you play it smart.

Redefine your perceptions of reality as you explore the biotech industry through the lense of a millionaire trader who has exploited the market and outperformed Wall Street by a landslide. Learn how to find small cap biotech stocks about to erupt with massive upside potential, and see how Kyle has solidified himself at the top of the market. Sign up for his next free training and see how you can do it too!