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XBI - ETF AI Analysis

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XBI

SPDR S&P BIOTECH ETF (XBI)

Rating:58Neutral
Price Target:
XBI, the SPDR S&P Biotech ETF, has a mid-range rating that reflects a mix of strong, established biotech names and higher-risk, early-stage companies. High-quality holdings like Alkermes, Exelixis, Krystal Biotech, and Neurocrine support the fund with solid financial performance, profitability, and promising pipelines, while weaker positions such as Twist Bioscience and Nuvalent, which face profitability, cash flow, and valuation challenges, weigh on the overall assessment. The main risk is the fund’s concentration in the volatile biotechnology sector, where many companies are unprofitable and highly sensitive to clinical and regulatory outcomes.
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 ride, with performance driven by a pack of fast-moving, smaller names rather than one giant star. High-flyers like Apogee Therapeutics and Moderna have been rising, giving the fund a lift as investors bet on new therapies and post-pandemic pipelines. Early-stage players such as Oruka and Spyre are more of a roller coaster, adding volatility even as they show bursts of strength. On the flip side, laggards like Praxis and a cooling Viking Therapeutics occasionally tap the brakes on this otherwise innovation-heavy, health care–focused ETF.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Moderna1.59%$173.31M$31.65B151.38%
59
Neutral
Apogee Therapeutics1.47%$160.57M$9.99B240.21%
49
Neutral
Twist Bioscience1.34%$146.33M$6.18B180.78%
43
Neutral
Kymera Therapeutics1.33%$145.00M$9.34B174.56%
56
Neutral
Erasca1.26%$138.06M$5.74B1227.46%
34
Underperform
Viking Therapeutics1.23%$134.83M$4.35B28.22%
53
Neutral
Mirum Pharmaceuticals1.22%$133.52M$7.66B141.55%
56
Neutral
Rhythm Pharmaceuticals1.22%$133.12M$7.83B68.22%
59
Neutral
Oruka Therapeutics1.22%$132.99M$5.14B531.07%
41
Neutral
Praxis Precision Medicines1.21%$132.27M$8.88B570.44%
58
Neutral

XBI Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
138.33
Positive
100DMA
132.79
Positive
200DMA
124.37
Positive
Market Momentum
MACD
7.74
Negative
RSI
76.81
Negative
STOCH
94.45
Negative
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 147.42, equal to the 50-day MA of 138.33, and equal to the 200-day MA of 124.37, indicating a bullish trend. The MACD of 7.74 indicates Negative momentum. The RSI at 76.81 is Negative, neither overbought nor oversold. The STOCH value of 94.45 is Negative, 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
$10.86B0.35%
58
Neutral
$140.66B0.09%
74
Outperform
$120.66B0.08%
75
Outperform
$52.62B0.08%
72
Outperform
$41.03B0.08%
73
Outperform
$18.44B0.09%
71
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
XBI
SPDR S&P BIOTECH ETF
162.97
74.99
85.24%
VGT
Vanguard Information Technology ETF
XLK
Technology Select Sector SPDR Fund
XLF
Financial Select Sector SPDR Fund
XLV
Health Care Select Sector SPDR Fund
VHT
Vanguard Health Care ETF
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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