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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 solid but not top-tier rating, reflecting a mix of strong, established biotech names and higher-risk, early-stage companies. Standout holdings like Alkermes and Neurocrine support the fund’s quality with strong financial performance, profitability, and well-positioned growth pipelines, while names such as Insmed, Scholar Rock, and early-stage APGE, which face profitability, cash flow, or no-revenue risks, weigh on the overall assessment. The main risk factor is the fund’s concentration in the volatile biotechnology sector, where many companies depend on successful clinical trials and can experience sharp price swings.
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 high-risk, high-reward drug developers rather than steady Big Pharma. Recent strength from names like Apellis, Summit Therapeutics, and Twist Bioscience has helped push the ETF forward, as investors reward promising pipelines and upbeat clinical news. Travere and TG Therapeutics are more mixed, with solid narratives but financial and technical clouds that keep them from really leading. Thanks to its equal-weight design, no single stock drives the bus, but the portfolio is firmly hitched to the fortunes of small and mid-cap biotech innovation.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Apellis Pharmaceuticals1.81%$153.40M$5.23B128.01%
50
Neutral
Travere Therapeutics1.51%$128.17M$3.74B110.80%
56
Neutral
Revolution Medicines1.50%$127.22M$28.24B217.51%
52
Neutral
TG Therapeutics1.44%$122.25M$5.85B-15.82%
65
Neutral
Twist Bioscience1.43%$121.78M$3.74B52.88%
43
Neutral
Arrowhead Pharmaceuticals1.40%$119.12M$10.35B444.38%
57
Neutral
Summit Therapeutics1.40%$118.76M$17.13B-8.25%
53
Neutral
Erasca1.32%$112.42M$6.68B1267.86%
34
Underperform
Alkermes1.32%$112.32M$5.54B20.85%
80
Outperform
Madrigal Pharmaceuticals1.31%$111.21M$11.75B56.99%
56
Neutral

XBI Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price
Price Trends
50DMA
128.01
Positive
100DMA
126.22
Positive
200DMA
113.26
Positive
Market Momentum
MACD
1.11
Positive
RSI
48.60
Neutral
STOCH
22.34
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For XBI, the sentiment is Neutral. The current price of undefined is equal to the 20-day moving average (MA) of 133.10, equal to the 50-day MA of 128.01, and equal to the 200-day MA of 113.26, indicating a neutral trend. The MACD of 1.11 indicates Positive momentum. The RSI at 48.60 is Neutral, neither overbought nor oversold. The STOCH value of 22.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for XBI.

XBI Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$8.32B0.35%
57
Neutral
$8.28B0.44%
65
Neutral
$3.25B0.38%
74
Outperform
$2.88B0.38%
73
Outperform
$2.86B0.08%
72
Outperform
$2.31B0.54%
71
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
XBI
SPDR S&P BIOTECH ETF
130.42
48.07
58.37%
IBB
iShares Biotechnology 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.
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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