Data compiled by Raymond James show that healthcare and biotechnology-focused mutual funds and exchange-traded funds registered net withdrawals of $1.5 billion for the week ending Wednesday. That amount represents a 1.53% contraction in assets under management for the group, covering 130 funds with combined assets near $99.5 billion.
The sector has now seen outflows in two consecutive weeks. On a year-to-date basis, net redemptions have accumulated to $1.98 billion.
Raymond James also reported movement in the breadth ratio, a measure defined as the number of funds recording inflows divided by the number seeing outflows. The ratio climbed to 0.48 from 0.45 the week before. The research note highlighted a historical observation: when the breadth ratio reaches 0.3, the biotech sector has, on average, rallied by 17.5% over the subsequent six months.
Separately noted by Raymond James, the breadth ratio stood at 0.28 on July 16. Since that mid-July reading, the Nasdaq Biotechnology Index has advanced by roughly 36%.
Taken together, the weekly flows and breadth metrics outline a picture of ongoing capital movement away from biotech-focused funds this week, set against a backdrop of prior breadth readings and subsequent index performance cited by the firm. The dataset covers 130 specialized funds and is expressed in both dollar flows and percentage change against the group's approximate $99.5 billion in assets.
Context and limitations
The figures presented are limited to the scope and timeframe reported by Raymond James - specifically the week ending Wednesday and year-to-date totals. The breadth ratio referenced is calculated as inflow-count divided by outflow-count among the funds in the sample, per the firm's definition. The note also cites a historical average gain associated with a breadth ratio threshold and provides a single prior ratio reading (0.28 on July 16) and the corresponding subsequent performance of the Nasdaq Biotechnology Index (about 36% increase since that date).
What the numbers show
- Net outflows of $1.5 billion for the latest week covering healthcare and biotech mutual funds and ETFs.
- Outflows equal a 1.53% decline in assets across 130 funds managing about $99.5 billion.
- Year-to-date net outflows totaling $1.98 billion and two consecutive weeks of outflows.
- Breadth ratio increased to 0.48 from 0.45, with historical context noted by Raymond James about rallies tied to low breadth readings and a past breadth reading of 0.28 on July 16.