Biotech ETFs plunge in the first month of 2022, some down nearly 30%
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Biotech ETFs plunge to start the 2022 year as funds such as the SPDR S&P Biotech (NYSEARCA:XBI) are sinking. XBI is currently hovering at a 21-month trading low, down 24.1% on the year and on pace for its fifth monthly decline in a row. 
XBI is not the only biotech exchange traded fund that is under heavy selling pressure. ARK Genomic Revolution ETF (BATS:ARKG), iShares Nasdaq Biotechnology ETF (NASDAQ:IBB), and First Trust NYSE Arca Biotechnology Index ETF (NYSEARCA:FBT) are all deep in the red YTD.
So far this year ARKG is -28.6%, IBB is -18.8%, and FBT is -13.4%.
Not supporting these funds are key holdings such as Teladoc Health (NYSE:TDOC), Moderna (NASDAQ:MRNA), and IQVIA Holdings (NYSE:IQV), which are each down 27.2%, 40%, and 17.7% respectively.
Biotech has been looked at as a potentially overvalued area where too much money flowed into the space towards the end of 2020 during the height of COVID and has since deflated.
ARKG, for example, saw over $7.24B flow into the fund in a three-month period from late Nov. 2020 to late Feb. of 2021. It has seen $2.71B exit the fund since Feb.23, 2021. 
Hurting the space further is the re-opening of the world as countries are easing their lockdown restrictions. Moreover, a new study has found that a vast majority of people recently infected with the Omicron variant say they had already had COVID previously.