SBIO ETF

Could now be the time to diversify into important tech subsectors? Rate cuts may already be benefiting tech sectors by easing borrowing costs, with more cuts potentially in the offing.

Yet another rate cut has come and gone, and even with somewhat steady inflation reads, further cuts may be in the pipeline. Debt-heavy areas like tech stand to benefit, but for those already heavily exposed to big tech names, looking elsewhere may appeal.

Biotech stocks and ETFs are among the assets that responded positively to last week's presidential election results. As just one example, the ALPS Medical Breakthroughs ETF (SBIO) is up 10% for the week ending November 11.

If there were a defining sector for investors this year, it has been tech investing. The ascendance of AI has lifted valuations and investor portfolios, boosting the market as a whole.

The effects of the Federal Reserve's recent interest rate cut haven't fully been felt by the economy or financial markets. But the first instance of U.S. monetary easing in over four years may be a boon for capital-intensive biotech companies.

In a somewhat quiet fashion, long-lagging biotech stocks and exchange traded funds are perking up. The ALPS Medical Breakthroughs ETF (SBIO) is part of that group.

While many investors are on the lookout for ETF opportunities in rate cuts, one particular strategy is already standing out. The biotech ETF SBIO is riding some positive momentum thanks to some major changes in the space this year.

Following some notable uncertainty in recent years, M&A activity looks to be in recovery. In the first half of this year, biotech M&A activity saw some positive numbers, per a new J.P.

On the lookout for an ETF that might respond particularly well to rate cuts? One rate-sensitive ETF to watch is seeing returns spike even before rate cuts arrive.