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| Some Definitions about Day-Trading / Part 4 |
| About INDICES ! |
| BIOTECH Index - BTK - Holders = BBH |
Overview
The American Stock Exchange Biotech Index (BTK) is the benchmark index for the Biotechnology industry. This index was started on October 18, 1991 with a value of
200.00. The index broke below 100 several times prior to 1999 and then peaked during 2000 when it briefly reached 800.
Composition
The BTK is comprised of 17 firms that are chosen to represent the Biotech sector. The index is relatively unusual in that it is equal-dollar weighted. This means that
each stock receives the same weighting in the index. The index is rebalanced four times per year to maintain continuity and to keep any stock from dominating the
index's value.
The table below lists the components of the Biotech Index along with the weighting that each stock carries in the index (data as of August 2004) :
The American Stock Exchange Biotech Index (BTK) is the benchmark index for the Biotechnology industry. This index was started on October 18, 1991 with a value of
200.00. The index broke below 100 several times prior to 1999 and then peaked during 2000 when it briefly reached 800.
Composition
The BTK is comprised of 17 firms that are chosen to represent the Biotech sector. The index is relatively unusual in that it is equal-dollar weighted. This means that
each stock receives the same weighting in the index. The index is rebalanced four times per year to maintain continuity and to keep any stock from dominating the
index's value.
The table below lists the components of the Biotech Index along with the weighting that each stock carries in the index (data as of August 2004) :
Protein Design -- PDLI
Chiron -- CHIR
Enzon Pharmaceuticals -- ENZN
Gilead Sciences -- GILD
Genzyme -- GENZ
MedImmune -- MEDI
Biogen IDEC -- BIIB
Cephalon -- CEPH
Amgen -- AMGN
Celgene -- CELG
Chiron -- CHIR
Enzon Pharmaceuticals -- ENZN
Gilead Sciences -- GILD
Genzyme -- GENZ
MedImmune -- MEDI
Biogen IDEC -- BIIB
Cephalon -- CEPH
Amgen -- AMGN
Celgene -- CELG
Millennium Pharmaceuticals -- MLNM
Celera Genomics -- CRA
Genentech -- DNA
Affymetrix -- AFFX
Human Genome Sciences -- HGSI
Vertex Pharmaceuticals -- VRTX
Invitrogen -- IVGN
Celera Genomics -- CRA
Genentech -- DNA
Affymetrix -- AFFX
Human Genome Sciences -- HGSI
Vertex Pharmaceuticals -- VRTX
Invitrogen -- IVGN
Positives
The Biotech Index is an excellent choice for investors who wish to track the performance of the Biotech sector apart from the broad market. Although it has been
extremely volatile, the Biotech sector has historically outperformed the overall market, so there is a large amount of interest in this area.
Drawbacks
Many investors do not like the fact that all of the Biotech Index's component stocks are equally weighted. This may distort the index's overall returns because a
handful of small companies could have a larger impact on performance than some of the industry's largest players, such as Amgen (AMGN) and Genentech (DNA).
The index is also somewhat narrowly focused because it only holds 17 firms out of the hundreds of companies that operate in this sector.
How can I trade/invest in this index ?
You can invest in the Biotech Index through many different options, futures and ETFs.
The Biotech Index is an excellent choice for investors who wish to track the performance of the Biotech sector apart from the broad market. Although it has been
extremely volatile, the Biotech sector has historically outperformed the overall market, so there is a large amount of interest in this area.
Drawbacks
Many investors do not like the fact that all of the Biotech Index's component stocks are equally weighted. This may distort the index's overall returns because a
handful of small companies could have a larger impact on performance than some of the industry's largest players, such as Amgen (AMGN) and Genentech (DNA).
The index is also somewhat narrowly focused because it only holds 17 firms out of the hundreds of companies that operate in this sector.
How can I trade/invest in this index ?
You can invest in the Biotech Index through many different options, futures and ETFs.
Trader : Herman Bogaerts -- Tradersname : Freedom --- Portable : 0033.(0).683.13.99.99
E-Mail : Herman.Bogaerts@Wanadoo.fr OR http://www.daytrader-generation.com
E-Mail : Herman.Bogaerts@Wanadoo.fr OR http://www.daytrader-generation.com
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