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XBI - ETF AI Analysis

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XBI

SPDR S&P BIOTECH ETF (XBI)

Rating:57Neutral
Price Target:
XBI, the SPDR S&P Biotech ETF, has a mid-range overall rating that reflects a balance between promising biotech opportunities and meaningful risks. Stronger holdings like Alkermes, with solid profitability, low debt, and growth-focused acquisitions, and TG Therapeutics, supported by a strong earnings call and attractive valuation, help lift the fund’s quality. However, weaker names such as Celcuity and Twist Bioscience, which face significant losses, poor valuations, and bearish technical trends, along with the general financial strain common in early-stage biotech, add risk and highlight the sector-concentration risk inherent in a biotech-focused ETF.
Positive Factors
Strong Recent Performance
The ETF has shown strong gains so far this year and over the past month, indicating positive recent momentum in its holdings.
Broad Biotech Diversification
With many holdings and each top position making up only a small slice of the fund, investors are not overly reliant on any single biotech stock.
Healthy Asset Base
The fund manages a large pool of assets, which can support liquidity and trading efficiency for investors.
Negative Factors
Highly Concentrated in Biotech
Almost all of the ETF’s exposure is in the health care sector, so its performance is heavily tied to the ups and downs of biotech stocks.
Limited Geographic Diversification
The fund is almost entirely invested in U.S. companies, offering little exposure to biotech opportunities in other regions.
Mixed Performance Among Top Holdings
While several leading positions have delivered strong gains, at least one notable holding has shown weak performance, which can drag on overall returns.

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

XBI Summary

The SPDR S&P Biotech ETF (XBI) is a fund that tracks the S&P Biotechnology Select Industry Index, giving you broad exposure to U.S. biotech companies in the health care sector. It holds many different biotech firms, from more established names like Alkermes to fast-growing innovators such as Twist Bioscience, all with similar-sized weights so no single company dominates. Someone might invest in XBI if they believe in the long-term growth of new drugs, gene therapies, and medical breakthroughs, and want diversification across many biotech stocks. A key risk is that biotech shares can be very volatile and may rise or fall sharply with drug trial news and market sentiment.
How much will it cost me?The SPDR S&P Biotech ETF (XBI) has an expense ratio of 0.35%, meaning you’ll pay $3.50 per year for every $1,000 invested. This expense ratio is slightly higher than average because the fund is actively managed with an equal-weighted structure, which requires more frequent adjustments compared to passively managed ETFs.
What would affect this ETF?The SPDR S&P Biotech ETF (XBI) could benefit from advancements in biotechnology, such as breakthroughs in gene editing and personalized medicine, which drive innovation and growth in the sector. However, it may face challenges from regulatory hurdles, high research costs, and potential economic downturns that could impact funding and investor sentiment in the biotech industry.

XBI Top 10 Holdings

XBI is a pure-play U.S. biotech fund, and its story is all about drug developers on the move rather than broad market giants. Names like TG Therapeutics, Travere Therapeutics, and Alkermes have been rising, giving the ETF a helpful tailwind, while Revolution Medicines and Twist Bioscience remain more of a mixed bag, with promising pipelines but still-strained finances. Krystal Biotech and Exelixis add some steadier strength, but overall the fund leans heavily on volatile, early- and mid-stage biotechs, making performance highly sensitive to trial results and FDA news rather than the broader economy.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Apellis Pharmaceuticals1.82%$153.89M
50
Neutral
TG Therapeutics1.71%$144.22M$5.95B12.44%
65
Neutral
Travere Therapeutics1.63%$137.88M$4.13B180.49%
56
Neutral
Revolution Medicines1.61%$135.73M$32.22B281.09%
52
Neutral
Arrowhead Pharmaceuticals1.48%$125.47M$10.56B395.37%
57
Neutral
Alkermes1.42%$119.77M$6.13B25.38%
80
Outperform
Krystal Biotech1.36%$115.05M$8.83B139.46%
80
Outperform
Beam Therapeutics1.35%$114.16M$2.95B70.17%
58
Neutral
Twist Bioscience1.33%$112.48M$3.77B114.33%
43
Neutral
Exelixis1.32%$111.66M$12.61B18.31%
78
Outperform

XBI Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
130.07
Positive
100DMA
127.73
Positive
200DMA
116.76
Positive
Market Momentum
MACD
-0.08
Positive
RSI
49.28
Neutral
STOCH
55.26
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For XBI, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 132.49, equal to the 50-day MA of 130.07, and equal to the 200-day MA of 116.76, indicating a neutral trend. The MACD of -0.08 indicates Positive momentum. The RSI at 49.28 is Neutral, neither overbought nor oversold. The STOCH value of 55.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for XBI.

XBI Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$8.45B0.35%
57
Neutral
$8.05B0.44%
66
Neutral
$3.19B0.38%
74
Outperform
$2.94B0.08%
72
Outperform
$2.91B0.38%
73
Outperform
$2.44B0.55%
71
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
XBI
SPDR S&P BIOTECH ETF
131.66
52.65
66.64%
IBB
iShares Biotechnology ETF
IHI
iShares U.S. Medical Devices ETF
FHLC
Fidelity MSCI Health Care Index ETF
IYH
iShares U.S. Healthcare 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.
DisclaimerThis 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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