The biotech sector has been one of the market's laggards for several years now, and 2025 has been no different, at least on the surface. Year-to-date, the iShares Nasdaq Biotechnology ETF (NASDAQ: IBB), which tracks the NASDAQ Biotechnology Index, is up just over 8%. The SPDR S&P Biotech ETF (NYSEARCA: XBI), which follows the S&P Biotechnology Select Industry Index, has gained only 6.2%.
Both are far behind the broader market benchmarks. But that simple snapshot doesn’t tell the whole story. Over the last month and quarter, the sector has shown signs of life, with momentum beginning to turn in its favor.
