XBI Stock Recent News

The SPDR S&P Biotech ETF (XBI) made its debut on 01/31/2006, and is a smart beta exchange traded fund that provides broad exposure to the Health Care ETFs category of the market.

The thirty-month bear market in biopharmaceutical stocks ended last October. The subsequent rally was standard, beginning with acquisitions at generous premiums.

The U.S. Healthcare sector has shown strong growth and is projected to continue growing due to the increasing number of Americans entering Medicare. The SPDR S&P Biotech ETF invests in biotech and pharmaceutical companies and has a low yield of 0.02%. The abrdn Healthcare Opportunities Fund invests in global healthcare companies and has a higher yield of 7.3%, but relies on non-income sources to maintain its payout.

The SPDR S&P Biotech ETF performance is more dependent on M&A than fundamental growth. The ETF has outperformed the NASDAQ since its inception but has seen a sharp decline since 2021 due to the end of zero-cost capital. The majority of the ETF's holdings are small-cap R&D startups, making it a speculative investment with limited fundamentals and valuations.

Equity and fixed-income markets had another strong month in December, driven by continuing retreating risk-free Treasury rates. We even saw an improvement in the breadth of the overall market, with broader participation lifting some of the beaten-down sectors for the year. That said, closed-end fund discounts remain historically wide, and that continues to drive opportunity in the CEF wrapper.

Thematic exchange-traded funds have become extremely popular investing vehicles. These three growth-oriented thematic ETFs stand out as superb buys right now.

Here's our daily look at three charts linked to recent news-driven price moves, with key technical levels to monitor.

Launched on 01/31/2006, the SPDR S&P Biotech ETF (XBI) is a smart beta exchange traded fund offering broad exposure to the Health Care ETFs category of the market.

Biopharmaceutical sector valuations have become more attractive after a significant decline in 2021. Larger drug companies are making acquisitions and partnerships with small-cap stocks at generous premiums. Money managers are under-invested in the sector and may be pressured to add holdings before year-end, potentially fueling a significant upward move.

Mizuho's Jared Holz and BMO Capital's Evan Seigerman join 'Power Lunch' to discuss the drug pricing battle between the Biden Administration and big pharma.