Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, the SPDR S&P Biotech ETF (NYSE: XBI ) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at SPDR S&P Biotech and see what CAPS investors are saying about the ETF right now.
SPDR S&P Biotech facts
| Inception |
January 2006 |
| Total Assets |
$389 million |
| Investment Approach |
Seeks to replicate the S&P Biotechnology Select Industry Index, which is derived from the biotechnology segment of a U.S. total market composite index. |
| Expense Ratio |
0.35% |
| 1-Year / 3-Year / 5-Year Return |
0.2% / 6.5% / 5.7% |
| Top Holdings with High CAPS Rating (4 or 5 Stars) and Portfolio Weight |
Amgen (Nasdaq: AMGN ) (3.3%)
Myriad Genetics (Nasdaq: MYGN ) (3.3%)
Celgene (Nasdaq: CELG ) (3.2%) |
| Alternatives |
iShares Nasdaq Biotechnology (Nasdaq: IBB )
Biotech HOLDRS (AMEX: BBH ) |
Sources: Morningstar and Motley Fool CAPS.
On CAPS, 98% of the 128 members who have rated SPDR S&P Biotech believe the ETF will outperform the S&P 500 going forward. These bulls include All-Star lemus, who is ranked in the top 10% of our community, and iddqkfyou.
Earlier this year, lemus summed up the opportunity: "If you can't decide on one, buy a basket of them. Like [SPDR S&P Biotech] slightly more than [iShares Nasdaq Biotechnology], smaller cap biotechs with a more concentrated portfolio."
In fact, SPDR S&P Biotech sports a portfolio whose stocks average long-term earnings growth of 19%. That's higher than that of other biotech ETFs like iShares Nasdaq Biotechnology (14%) and Biotech HOLDRS (10%).
CAPS member iddqkfyou expands on the outperform argument:
Some of these companies will go up 10x and some will go to zero... But I like those odds because I believe that the time is finally right. This industry has broken away from a linear progression, so I want to place some chips to see where they land.
What do you think about SPDR S&P Biotech, or any other ETF for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional ETFs is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
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