Should You Invest in the SPDR S&P Biotech ETF (XBI)?

Core Viewpoint - The SPDR S&P Biotech ETF (XBI) is a prominent investment vehicle for gaining exposure to the Healthcare - Biotech sector, appealing to both institutional and retail investors due to its low costs and transparency [1][2]. Group 1: ETF Overview - XBI was launched on January 31, 2006, and has accumulated over $4.62 billion in assets, making it one of the largest ETFs in the Healthcare - Biotech segment [3]. - The ETF aims to replicate the performance of the S&P Biotechnology Select Industry Index, which is a modified equal weight index representing the biotechnology sub-industry [4]. Group 2: Costs and Performance - The annual operating expense ratio for XBI is 0.35%, positioning it as one of the least expensive options in the market, with a 12-month trailing dividend yield of 0.04% [5]. - As of August 12, 2025, XBI has experienced a loss of approximately 5.43% year-to-date and a decline of about 10.83% over the past year, with trading prices ranging from $69.8 to $104.18 in the last 52 weeks [8]. Group 3: Sector Exposure and Holdings - The ETF is fully allocated to the Healthcare sector, with Moderna Inc (MRNA) making up about 2.74% of total assets, and the top 10 holdings representing approximately 24.99% of total assets under management [6][7]. Group 4: Alternatives - Other ETF options in the biotechnology space include the First Trust NYSE Arca Biotechnology ETF (FBT) with $1.01 billion in assets and an expense ratio of 0.54%, and the iShares Biotechnology ETF (IBB) with $5.38 billion in assets and an expense ratio of 0.45% [10].