On the Asset Class Group Scores page, the biotechnology group currently holds fourth place overall and first among all sectors.
Last month, we highlighted healthcare’s improvement and noted that it has been the strongest performer in Q4 of 2025. Like most sectors, healthcare is broad and includes multiple sub-groups. Understanding these underlying components can reveal areas of strength and provide insight into which sub-sectors are driving performance.
The biotechnology sector consists of companies that merge biology, science, and technology to develop products that advance health. On the Asset Class Group Scores page—which ranks ETF groups by average fund score—the biotechnology group currently holds fourth place overall and first among all sectors. Since bottoming in May, its average score has surged to 5.04. This sharp rise underscores the group’s tendency to generate strong momentum over short periods. In the NDW Group Matrix, which ranks 40 sub-sectors by relative strength, the NDW Biomedics group sits sixth overall, further confirming the group’s strength. Note that “Biomedics” and “Biotechnology” have slightly different definitions and constituents.
For those interested in gaining exposure in the sector, you could consider the State Street SPDR S&P Biotech ETF (XBI). The fund maintains a strong fund score of 5.75, with a strong score direction of 4.92, demonstrating the strong improvement within the last six months. When looking at XBI on a 1-point scale, the fund sits on 10 consecutive buy signals after completing a double top break at $124. In early September, XBI reversed back into Xs against the market. The weekly OBOS indicates that the fund is in slightly overbought territory, so wait for the 10-week trading band to normalize before considering. Initial support is at $118, with additional support at $114. Resistance can be seen at $125.
For those interested in stock-specific exposure, you could consider AbbVie Inc. (ABBV). Although ABBV pertains to the "Drugs" NDW Sector group, the business does exhibit some biotech qualities and the stock is a holding in XBI, thus serving as possible exposure into the sector. The 5 for 5’er shifted up from a 4 in May after moving back to a positive trend. The stock sits on 3 consecutive buy signals after breaking a spread triple top at $200 in August. Year-to-date, the stock is up over 25%, demonstrating its outperformance this year. Additionally, the stock offers an impressive yield of 3.10%. Long exposure can be made here. Initial support is at $212, with additional support at $190. Overhead resistance can be seen at $236 and $244.
