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XPH - ETF AI Analysis

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XPH

SPDR S&P Pharmaceuticals ETF (XPH)

Rating:59Neutral
Price Target:
XPH, the SPDR S&P Pharmaceuticals ETF, has a mixed but generally solid rating driven by strong, established holdings like Merck, which brings robust financial performance, attractive valuation, and a healthy drug pipeline, and Pacira, which adds stable revenue growth and strategic initiatives. However, several smaller, early-stage or financially challenged biotech names such as Enliven Therapeutics, Terns Pharmaceuticals, and Edgewise Therapeutics introduce higher risk due to losses, weak technical trends, and valuation concerns. The main risk factor is the fund’s exposure to high-risk, pre-revenue or unprofitable biotech companies within the concentrated pharmaceuticals sector, which can increase volatility.
Positive Factors
Strong Recent Top Holdings
Many of the largest positions, such as MBX Biosciences, Definium Therapeutics, Organon, and Amylyx Pharmaceuticals, have shown strong year-to-date gains, helping support the fund’s overall performance.
Solid Recent Performance Momentum
The ETF has delivered strong returns over the last three months and slightly positive results year-to-date, indicating improving momentum after a recent dip.
Reasonable Expense Ratio for a Niche Sector
The fund’s expense ratio is moderate for a specialized pharmaceuticals ETF, so investors are not paying unusually high ongoing fees for this focused exposure.
Negative Factors
Highly Concentrated in Health Care
With almost all assets in the health care sector, the fund is heavily exposed to industry-specific risks like regulatory changes and drug approval setbacks.
Limited Geographic Diversification
The ETF is almost entirely invested in U.S. companies, offering little protection if the U.S. market or domestic pharmaceutical industry faces a downturn.
Small Asset Base
The relatively modest assets under management may lead to lower trading volumes and wider bid-ask spreads, which can increase trading costs for investors.

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

XPH Summary

SPDR S&P Pharmaceuticals ETF (XPH) is a fund that follows the S&P Pharmaceuticals Select Industry Index, focusing on U.S. drugmakers of many sizes. It holds a mix of well-known companies like Merck alongside smaller, more specialized pharmaceutical firms working on new treatments and medicines. Someone might invest in XPH to bet on long-term growth in health care and pharmaceuticals, while still spreading money across many companies instead of picking just one stock. A key risk is that it is heavily focused on the pharmaceutical industry, so its price can swing with drug trial results, regulation changes, and health care policy.
How much will it cost me?The SPDR S&P Pharmaceuticals ETF (XPH) has an expense ratio of 0.35%, which means you’ll pay $3.50 per year for every $1,000 invested. This is slightly higher than average for ETFs because it is a sector-focused fund, which often requires more active management compared to broad-market index funds.
What would affect this ETF?The SPDR S&P Pharmaceuticals ETF (XPH) could benefit from increasing global health care needs, advancements in biotechnology, and demographic trends such as aging populations, which drive demand for innovative drugs and treatments. However, it may face challenges from regulatory changes, patent expirations, or pricing pressures in the pharmaceutical industry, as well as broader economic conditions like rising interest rates that could impact funding for smaller companies in its portfolio. Its focus on U.S.-based pharmaceutical firms makes it sensitive to domestic health care policies and market dynamics.

XPH Top 10 Holdings

XPH is a pure play on U.S. pharmaceuticals, but it leans more toward niche and emerging names than the usual Big Pharma giants. Royalty Pharma and Ligand are quietly helping to pull the fund higher with steadier, more constructive trends, while Definium Therapeutics has been a standout riser, adding some spark to returns. On the flip side, Merck and Johnson & Johnson, though fundamentally solid, have been more mixed lately, and Viatris looks like it’s losing steam, acting as a bit of a brake on the portfolio’s momentum.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Enliven Therapeutics2.48%$7.62M$2.26B90.28%
36
Underperform
Corcept Therapeutics2.22%$6.80M$4.47B-49.91%
76
Outperform
Terns Pharmaceuticals2.21%$6.77M$6.09B2020.08%
45
Neutral
Esperion2.06%$6.31M$670.28M87.77%
56
Neutral
Elanco Animal Health2.03%$6.24M$11.49B114.67%
69
Neutral
Axsome Therapeutics2.00%$6.13M$8.79B56.52%
57
Neutral
Merck & Company1.99%$6.09M$298.76B39.54%
80
Outperform
Edgewise Therapeutics1.98%$6.08M$3.55B113.53%
40
Underperform
Pacira Pharmaceuticals1.98%$6.08M$922.76M-8.44%
69
Neutral
Jazz Pharmaceuticals1.98%$6.07M$11.59B48.90%
64
Neutral

XPH Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
55.62
Negative
100DMA
54.98
Negative
200DMA
50.06
Positive
Market Momentum
MACD
-0.74
Negative
RSI
52.17
Neutral
STOCH
62.56
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For XPH, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 53.73, equal to the 50-day MA of 55.62, and equal to the 200-day MA of 50.06, indicating a neutral trend. The MACD of -0.74 indicates Negative momentum. The RSI at 52.17 is Neutral, neither overbought nor oversold. The STOCH value of 62.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for XPH.

XPH Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$295.95M0.35%
59
Neutral
$963.34M0.38%
70
Outperform
$805.87M0.61%
71
Outperform
$704.17M0.40%
71
Outperform
$640.29M0.38%
69
Neutral
$392.48M0.57%
70
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
XPH
SPDR S&P Pharmaceuticals ETF
54.72
14.34
35.51%
IHE
iShares U.S. Pharmaceuticals ETF
FXH
First Trust Health Care AlphaDEX Fund
RSPH
Invesco S&P 500 Equal Weight Health Care ETF
IHF
iShares U.S. Healthcare Providers ETF
PJP
Invesco Dynamic Pharmaceuticals 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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