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.

Since late 2020, biotechnology stocks have not performed well, but recent company buyouts and new drug approvals indicate a possible improvement in the industry. The SPDR S&P Biotech ETF (XBI) provides wide access to the biotech field, and its equal weighting helps lessen the impact of single stock changes. XBI has solid support levels at $96 and $90, and it could rise above $102.50 if the Federal Reserve lowers interest rates.

Stock prices in the pharmaceutical sector are looking more appealing for possible mergers because initial public offering (IPO) prices are falling. The growing elderly population and the rise in chronic illnesses are creating positive opportunities for the pharmaceutical industry.

The Investment Committee has provided you with their recommended stocks to keep an eye on for the second half of the year.

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.