IBB - ETF AI Analysis

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iShares Biotechnology ETF (IBB)

Rating:67Neutral

Price Target:―

The iShares Biotechnology ETF (IBB) benefits from strong contributions by top holdings like Vertex Pharmaceuticals (VRTX) and Gilead Sciences (GILD), both of which demonstrate robust financial performance, strategic advancements, and positive earnings sentiment. However, weaker holdings such as Insmed (INSM), which faces profitability and cash flow challenges, slightly weigh down the overall rating. A key risk factor for this ETF is its concentration in the biotechnology sector, which can be volatile and sensitive to regulatory changes.

Positive Factors

Strong Top Holdings

Several key positions, such as Alnylam Pharma and Insmed, have delivered strong year-to-date performance, boosting the ETF's returns.

Focused Sector Exposure

The ETF is heavily concentrated in the health care sector, benefiting from the growth potential of biotechnology companies.

Reasonable Expense Ratio

The ETF charges a competitive expense ratio, making it a cost-effective choice compared to actively managed funds.

Negative Factors

Over-Concentration in Health Care

With nearly all assets in the health care sector, the ETF is highly exposed to risks specific to biotechnology and pharmaceuticals.

Limited Geographic Diversification

The ETF is overwhelmingly focused on U.S. companies, offering minimal exposure to international markets.

Mixed Performance Among Holdings

While some holdings have performed well, others like Regeneron have lagged, potentially dragging down overall returns.

IBB vs. SPDR S&P 500 ETF (SPY)

AUM8.26B

RegionNorth America

Expense Ratio0.44%

Beta0.79

IssueriShares

Inception DateFeb 05, 2001

Dividend Yield0.23%

Asset ClassEquity

Index TrackedNYSE Biotechnology (TR)

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume1,146,503

30 Day Avg. Volume2,038,987

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

210.54

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering252

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

IBB Summary

The iShares Biotechnology ETF (IBB) is an investment fund that focuses on companies in the biotechnology sector, which is part of the broader health care industry. It tracks an index of U.S.-listed biotech companies, including well-known names like Gilead Sciences and Vertex Pharmaceuticals. These companies are involved in cutting-edge medical research, such as developing new drugs and therapies. Investors might consider IBB for potential growth, as biotechnology is a rapidly advancing field with significant contributions to health care innovation. However, new investors should be aware that the ETF’s performance can be volatile, as it depends heavily on the success of biotech research and the overall health care market.

How much will it cost me?The iShares Biotechnology ETF (IBB) has an expense ratio of 0.44%, which means you’ll pay $4.40 per year for every $1,000 invested. This is slightly higher than average because it’s a sector-focused fund that requires more active management to track the biotechnology industry. It’s a reasonable cost for the specialized exposure it provides.

What would affect this ETF?The iShares Biotechnology ETF (IBB) could benefit from advancements in medical research, increased demand for innovative treatments, and supportive government policies for health care innovation. However, it may face challenges from regulatory hurdles, high development costs, and potential market volatility tied to interest rate changes or broader economic conditions. Its focus on U.S.-listed biotechnology companies means it is heavily influenced by trends in the U.S. health care sector and the performance of top holdings like Gilead Sciences and Vertex Pharmaceuticals.

IBB Top 10 Holdings

The iShares Biotechnology ETF (IBB) is heavily concentrated in the U.S. biotechnology sector, with top holdings like Vertex Pharmaceuticals and Regeneron driving steady performance thanks to pipeline advancements and robust revenue growth. Gilead Sciences has also been a rising star, buoyed by successful product launches and a favorable patent settlement. However, Alnylam Pharma and Insmed are holding the fund back with lagging momentum and valuation concerns. Overall, the ETF leans into innovation and medical breakthroughs, but its reliance on a few key names underscores the sector’s inherent volatility.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
VRTX	Vertex Pharmaceuticals	8.65%	$721.57M	$114.71B	11.06%	78 Outperform
GILD	Gilead Sciences	8.07%	$673.14M	$150.87B	33.03%	78 Outperform
AMGN	Amgen	7.84%	$653.88M	$176.43B	25.43%	77 Outperform
REGN	Regeneron	6.90%	$575.75M	$81.59B	8.10%	78 Outperform
ALNY	Alnylam Pharma	4.56%	$380.36M	$52.87B	70.81%	60 Neutral
INSM	Insmed	3.24%	$269.81M	$37.77B	153.54%	43 Neutral
ARGX	Argenx Se	3.01%	$250.90M	$52.27B	35.20%	79 Outperform
NTRA	Natera	2.66%	$221.79M	$31.65B	36.54%	73 Outperform
BIIB	Biogen	2.28%	$189.99M	$26.09B	16.82%	74 Outperform
ONC	BeOne Medicines	1.94%	$161.93M	$38.24B	72.00%	61 Neutral

IBB Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price―

Price Trends

50DMA

165.54

Positive

100DMA

154.57

Positive

200DMA

140.32

Positive

Market Momentum

MACD

1.15

Positive

RSI

51.05

Neutral

STOCH

37.36

Neutral

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For IBB, the sentiment is Neutral. The current price of undefined is equal to the 20-day moving average (MA) of 169.82, equal to the 50-day MA of 165.54, and equal to the 200-day MA of 140.32, indicating a neutral trend. The MACD of 1.15 indicates Positive momentum. The RSI at 51.05 is Neutral, neither overbought nor oversold. The STOCH value of 37.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IBB.

IBB Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
IBB	―	―	$8.26B	0.44%	―
XBI	―	―	$7.83B	0.35%	―
IHI	―	―	$4.04B	0.38%	―
IYH	―	―	$3.57B	0.38%	―
FHLC	―	―	$2.84B	0.08%	―
FBT	―	―	$1.35B	0.54%	―

Performance Comparison

IBB

iShares Biotechnology ETF

169.00

35.05

26.17%

XBI

SPDR S&P BIOTECH ETF

―

IHI

iShares U.S. Medical Devices ETF

―

IYH

iShares U.S. Healthcare ETF

―

FHLC

Fidelity MSCI Health Care Index ETF

―

FBT

First Trust NYSE Arca Biotechnology Index Fund

―

Glossary

BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―

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