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

Core Insights - The State Street SPDR S&P Biotech ETF (XBI) is a passively managed ETF launched on January 31, 2006, designed to provide broad exposure to the Healthcare - Biotech segment of the equity market [1] - The ETF has gained popularity among retail and institutional investors due to its low costs, transparency, flexibility, and tax efficiency [1][2] - As of now, the fund has amassed over $7.82 billion in assets, making it one of the largest ETFs in the Healthcare - Biotech sector [3] Index and Performance - XBI seeks to match the performance of the S&P Biotechnology Select Industry Index, which represents the biotechnology sub-industry portion of the S&P Total Markets Index [4] - The ETF has shown a performance increase of approximately 35.52% over the past year and about 28.8% year-to-date [8] - The ETF has a beta of 0.87 and a standard deviation of 26.86% over the trailing three-year period, indicating a high-risk profile [8] Costs and Holdings - The annual operating expense ratio for XBI is 0.35%, making it one of the least expensive options in the ETF space [5] - The ETF has a 12-month trailing dividend yield of 0.03% [5] - The fund is fully allocated to the Healthcare sector, with Crispr Therapeutics Ag (CRSP) accounting for about 2.48% of total assets, and the top 10 holdings representing approximately 19.54% of total assets [6][7] Alternatives - XBI carries a Zacks ETF Rank of 3 (Hold), indicating it is a sufficient option for investors seeking exposure to the Health Care ETFs area [9] - Other ETF options in the space include First Trust NYSE Arca Biotechnology ETF (FBT) with $1.35 billion in assets and iShares Biotechnology ETF (IBB) with $8.60 billion in assets, both having higher expense ratios than XBI [10]