XBI ETF

Last week, the biotech sector experienced its worst weekly performance since 2020, mainly due to the fading post-election rally and worries about RFK Jr.'s possible influence on the FDA. However, concerns about Mr. Kennedy taking charge of the HHS may be exaggerated, as his confirmation is not guaranteed and he might focus more on the food industry than biotech. The biotech sector seems to be undervalued compared to the broader market, indicating a potential buying opportunity for long-term investors.

The SPDR S&P Biotech ETF (XBI) is a smart beta exchange-traded fund that was launched on January 31, 2006. It provides wide-ranging access to the Health Care ETFs sector in the market.

The SPDR® S&P Biotech ETF is a cost-effective and diverse option for investors looking to benefit from the biotech industry. It's important to compare XBI's performance with the Russell 2000 instead of the S&P 500, as it mainly invests in small- and mid-cap stocks. I think the current economic situation is good for growth in the biotechnology field, even with the recent rise in long-term Treasury bond yields.

Biotechnology equities have underperformed since late 2020, but recent acquisitions and drug approvals suggest a potential industry revaluation. SPDR S&P Biotech ETF (XBI) offers broad exposure to the biotech sector, with equal weighting reducing susceptibility to individual stock movements. XBI shows strong support around $96 and $90, with the potential to break resistance at $102.50, especially if the Federal Reserve cuts rates.

Stock valuations in the pharmaceutical industry are becoming more attractive for potential mergers due to declining IPO prices. Aging population and prevalence of chronic diseases are driving favorable prospects for the drug industry.

The Investment Committee give you their top stocks to watch for the second half.

Launched on 01/31/2006, the SPDR S&P Biotech ETF (XBI) is a smart beta exchange traded fund offering broad exposure to the Health Care ETFs category of the market.

Looking for broad exposure to the Healthcare - Biotech segment of the equity market? You should consider the SPDR S&P Biotech ETF (XBI), a passively managed exchange traded fund launched on 01/31/2006.

The biotech industry has seen notable fluctuations but has yielded a return similar to the risk-free return of the 10-Year Treasury in the last year. Two important factors will influence the future performance of small and midcap biotech stocks, as discussed in the following paragraphs regarding SPDR® S&P Biotech ETF.