XBI Stock Recent News

Subscribers to  Chart of the Week  received this commentary on Sunday, June 11.

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.

If you're interested in broad exposure to the Healthcare - Biotech segment of the equity market, look no further than the SPDR S&P Biotech ETF (XBI), a passively managed exchange traded fund launched on 01/31/2006.

Several ETFs exist offering investors concentrated biotech exposure that varies in stock selection and weighting schemes. While all of the choices exhibit 90%+ exposure to biotech stocks, only XBI is a true pure-play at nearly 100%.

We believe the M&A wave in the biotech sector presents a prime opportunity for investors to profit from the rising valuations of small and mid-cap firms in SPDR® S&P Biotech ETF. Big pharma companies, facing patent cliffs and pricing pressures, drive M&A activity, with substantial acquisitions expected from major industry players.

Biotech comes with a great many positive externalities for society, and can be a big positive for portfolios right now.

Biotech names tend to have some of the best upsides for a well-informed investor. For a majority of us understanding the industry is no easy task and many individual biotech names can be fraught with uncertainty.

Smart Beta ETF report for XBI

Share prices appear unaffected as passive ETF and mutual fund stakes hit 19%, analysis says.

XBI sits 58% below its all-time high. Yet I still don't think it is a good investment here. There are too many risk factors for the smaller biotech stocks this ETF owns, and tighter lending conditions will only complicate things.