SPDR S&P Biotech ETF (NYSE:XBI) seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the S&P Biotechnology Select Industry Index derived from the biotechnology segment of a U.S. total market composite index. In seeking to track the performance of the S&P Biotechnology Select Industry Index (the “index”), the fund employs a sampling strategy. It generally invests substantially all, but at least 80%, of its total assets in the securities comprising the index. The index represents the biotechnology segment of the S&P Total Market Index (“S&P TMI”).
This SPDR fund is linked to the S&P Biotechnology Select Industry Index. That gives it an admittedly smaller list of total holdings at around 140 positions, but it samples from the most established picks on all U.S. exchanges, including the NYSE, to provide a more substantial list of holdings. This fund focuses on the top of the food chain does help smooth out some volatility in an already fast-moving sector. It’s also well-established in its own right with more than $7.36 billion in assets under management, and it offers a cheaper cost structure with an expense ratio of 0.35%.
SPDR S&P Biotech ETF seeks to provide investment results that correspond to the total return performance of the S&P Biotechnology Select Industry Index. This modified equal-weighted index provides exposure to large, mid, and small-cap stocks in the biotech ecosystem. XBI’s equal weight structure gives investors “unconcentrated exposure” to 172 biotech companies. This includes the smaller, more risky drug manufacturers who can see their share price rise or fall dramatically depending on approvals (or rejections) from the FDA.
Top 10 Holdings (8.60% of Total Assets)