If you’re looking for an investment profile that’s a little outside the norm, you could do worse than look at the ASX’s health and biotech stocks.
Biotech analysis site Biotech Daily this month announced that its index of 40 top-performing small cap biotech stocks had delivered a 339 percent return over the space of 13 years.
The BDI-40, which does not include mega companies like Cochlear, CSL and Resmed, rose 20.8 percent on the raw collective market capitalisation, and 339 percent when adjusted for comings and goings like the ASX 200.
That compares with the safe haven of the ASX 200, which saw only a 30 percent rise in the same time period.
In a testament to the consistency of the index, a quarter (10) of the BDI-40 stocks survived the distance through all 13 years.
Companies such as Clinuvel (up 2485 percent), Mesoblast (up 894 percent) and Polynovo (up 817 percent) have particularly impressed.
In the year-to-date, the BDI-40 has seen a 40 percent rise, with the big three caps up 13 percent and the ASX 200 up a modest 7 percent.
This content does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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