Bio ETFs sweep the top returns, taking 9 of the top 10 spots

[Financial News] Bio exchange-traded funds (ETFs) accounted for 9 of the top 10 performers over the past week. As major biotech stocks rebounded together, returns on related products topped 12%. The gains are attributed to a strong U.S. healthcare sector and bargain hunting after a sharp decline, which supported investor sentiment, as well as expectations for new drug development and technology licensing.
According to Koscom Corporation's ETF CHECK on the 22nd, the top-performing ETF over the past week (16–22) was ACE K-Bio KOSDAQ Active, which rose 12.19%. UNICORN K-Bio Active followed with a 12.15% gain, and MIGHTY New Drug Focus Bio Active rose 11.57%. MIDAS Bio Healthcare Active also climbed 9.73%, with all three leading products recording double-digit returns.
TIGER Technology Transfer Bio Active (9.36%) and TIME K-Bio Active (9.04%) ranked fifth and sixth, respectively. RISE Bio TOP 10 Active (8.41%), KoAct Bio Healthcare Active (7.90%), and TIGER Bio TOP 10 (7.37%) were also among the top 10. The only non-biotech product was TIGER 200 Construction, which ranked seventh with an 8.68% gain.
Not only active products, whose managers adjust their holdings and weightings, but also passive products investing in major biotech stocks made it into the top rankings. The ETF performance appears to reflect a broad sector rebound, in addition to sharp gains in some stocks.
As of that day, ACE K-Bio KOSDAQ Active held 8.66% in Alteogen Inc., 8.02% in Jituji Bio, and 7.71% in PROTEINA CO., LTD. Its weightings in OliX and Voronoi, Inc. were 7.43% and 7.11%, respectively. Gains across multiple stocks coincided in a portfolio centered on KOSDAQ biotech companies. D&D Pharmatech, LigaChem Biosciences, and ST Pharm are also among its major holdings.
Sector-by-sector shifts in investment flows in U.S. stock markets are also thought to have affected investor sentiment at home. The S&P 500 healthcare sector has recently been reaching new highs. Concerns over the massive investments and debt burdens of AI companies have shifted interest toward other sectors, including healthcare, while bargain buying flowed into domestic biotech stocks after a sharp decline, according to one interpretation.
Over the medium to long term, the expansion of new drug development is underpinning growth expectations. One analysis suggests that business opportunities for related companies could grow as RNA therapeutics expand beyond rare diseases to chronic conditions with larger patient populations, such as obesity and hyperlipidemia. OliX is attracting attention for new drug development in areas including obesity and ophthalmic diseases, as well as expectations for additional licensing deals. ST Pharm is drawing notice amid rising demand for the production of therapeutic ingredients.
Yun Seok-hyeon, an analyst at Shinhan Investment & Securities, said, “The key to growth in RNA therapeutics is ‘production,’” and analyzed that “demand for new drugs is expected to surge from rare diseases affecting hundreds of thousands of people to chronic diseases affecting tens of millions, making the production of RNA raw materials a key bottleneck.”
[email protected] Bae Han-geul Reporter