Biotech losing its XBI barometer?

Changes to the methodology used in calculating the XBI will likely result in the ETF no longer being the de facto barometer for measuring the performance of small cap and midcap biotechs.

S&P Global disclosed in an index methodology update that as of June 21, the S&P Biotechnology Select index that underlies the XBI ETF was no longer an equal-weighted index. Instead, adjustments are made to weight the constituents of the index based on three-month median trading volume. The weighting based on liquidity means that large cap companies have a greater impact on the XBI’s performance. ...