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XBI - ETF AI Analysis

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XBI

SPDR S&P BIOTECH ETF (XBI)

Rating:56Neutral
Price Target:
XBI, the SPDR S&P Biotech ETF, has a mid-range rating that reflects a mix of promising science and meaningful financial risk across its holdings. Strong contributors like Protagonist Therapeutics, which shows solid financial performance and supportive technical trends, help lift the fund’s quality, while weaker names such as Erasca and Twist Bioscience, both facing ongoing losses and bearish or weak technical signals, weigh on the overall score. The main risk is that the ETF is heavily focused on early-stage biotech companies, where high cash burn, lack of consistent profits, and volatile stock movements are common.
Positive Factors
Strong Recent Performance
The ETF has delivered strong gains so far this year and over the past few months, showing solid recent momentum.
Top Holdings with Strong Gains
Many of the largest positions, including several biotech names, have posted strong year-to-date gains that support the fund’s overall performance.
Moderate Expense Ratio
The fund’s expense ratio is reasonable for a specialized biotech ETF, helping investors keep more of their returns compared with higher-cost options.
Negative Factors
Heavy Sector Concentration
Almost all assets are in the health care sector, specifically biotech, which increases the risk if this single industry faces a downturn.
Limited Geographic Diversification
The ETF is almost entirely invested in U.S. companies, offering little protection if the U.S. market or economy weakens.
High Industry Volatility
Biotech stocks can be very sensitive to drug trial results, regulation, and sentiment, which can lead to sharp price swings in the fund.

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

XBI Summary

XBI is the SPDR S&P Biotech ETF, which follows the S&P Biotechnology Select Industry Index and focuses on U.S. biotech companies in the health care sector. It holds a wide mix of firms working on new drugs and medical treatments, from smaller players to well-known names like Moderna and Viking Therapeutics. Investors might consider XBI for growth potential and diversification within biotech, since it spreads money fairly evenly across many companies. However, biotech stocks can be very volatile and sensitive to news about drug trials and regulation, so the ETF’s price can move up and down sharply.
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 right now is all about early-stage drug developers. High-fliers like Apogee Therapeutics, Dianthus, and Spyre are rising on upbeat trial news and momentum, helping power the ETF despite their individual risks. Revolution Medicines and Kymera are also contributing, with steady-to-strong recent moves tied to promising pipelines. On the flip side, Twist Bioscience and Praxis look more mixed, with financial strains and choppy trading occasionally tugging the fund back. Overall, performance is driven by a broad, equal-weighted bet on volatile, innovation-heavy biotech names.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Apogee Therapeutics1.65%$159.83M$10.11B251.02%
49
Neutral
Oruka Therapeutics1.40%$135.51M$5.31B620.09%
41
Neutral
Dianthus Therapeutics1.38%$134.18M$5.69B444.94%
61
Neutral
Kymera Therapeutics1.36%$132.54M$8.66B144.59%
56
Neutral
Erasca1.34%$130.57M$6.15B1220.14%
34
Underperform
Spyre Therapeutics1.32%$128.42M$8.50B498.11%
43
Neutral
Twist Bioscience1.28%$124.24M$5.32B172.06%
43
Neutral
Cogent Biosciences1.28%$124.23M$6.76B262.17%
37
Underperform
CG Oncology, Inc.1.28%$123.99M$6.10B173.62%
58
Neutral
Protagonist Therapeutics1.28%$123.88M$8.55B157.41%
68
Neutral

XBI Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
144.96
Positive
100DMA
137.26
Positive
200DMA
128.62
Positive
Market Momentum
MACD
RSI
STOCH
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 155.23, equal to the 50-day MA of 144.96, and equal to the 200-day MA of 128.62, indicating a neutral trend. The MACD of ― indicates undefined momentum. The RSI at ― is undefined, neither overbought nor oversold. The STOCH value of ― is undefined, 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
$9.66B0.35%
56
Neutral
$9.39B0.44%
65
Neutral
$3.53B0.38%
73
Outperform
$3.37B0.08%
71
Outperform
$3.31B0.38%
74
Outperform
$2.78B0.55%
71
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
XBI
SPDR S&P BIOTECH ETF
147.01
61.47
71.86%
IBB
iShares Biotechnology ETF
IYH
iShares U.S. Healthcare ETF
FHLC
Fidelity MSCI Health Care Index ETF
IHI
iShares U.S. Medical Devices 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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