Exchange-traded Funds  

Biotech ETF doubles after Trump win

Biotech ETF doubles after Trump win

Exchange traded fund provider Source saw its biotech ETF almost double in size the day after the US election, as Donald Trump’s victory gave the sector a boost. 

There was $170m (£135m) of inflows into the Source Biotech ETF when the election result was announced on the 9 November, taking assets under management to $370m (£293m).

This is a marked turnaround after biotech stocks declined 22 per cent between the start of this year and the presidential election.

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Chris Mellor, executive director of equities product management at Source, said investors had been anticipating “hostile” legislation if Hillary Clinton had won the election.

“Instead, a full Republican sweep sent stock prices soaring,” he said, pointing out the Source Biotech ETF returned 9 per cent on 9 November. 

“Biotech companies stand to benefit, not just from looser regulation, but also from the potential of a tax holiday on cash repatriation, last seen in 2004.”