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Should You Invest in the ALPS Medical Breakthroughs ETF (SBIO)?
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The ALPS Medical Breakthroughs ETF (SBIO - Free Report) was launched on 12/31/2014, and is a passively managed exchange traded fund designed to offer broad exposure to the Healthcare - Broad segment of the equity market.
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Healthcare - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 14, placing it in bottom 13%.
Index Details
The fund is sponsored by Alps. It has amassed assets over $205.86 million, making it one of the average sized ETFs attempting to match the performance of the Healthcare - Broad segment of the equity market. SBIO seeks to match the performance of the Poliwogg Medical Breakthroughs Index before fees and expenses.
The Poliwogg Medical Breakthroughs Index captures research & development opportunities in the pharmaceutical industry. It consists of small-cap and mid-cap pharmaceutical and biotechnology stocks listed on US stock exchanges that have one or more drugs in either Phase II or Phase III US FDA clinical trials.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.50%, making it on par with most peer products in the space.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, Tgtxtg Therapeutics Inc. Accounts for about 3.22% of total assets, followed by Legnlegend Biotech Corp. And Aplsapellis Pharmaceuticals Inc.
The top 10 holdings account for about 26.24% of total assets under management.
Performance and Risk
So far this year, SBIO has lost about -14.87%, and it's up approximately 5.42% in the last one year (as of 08/04/2021). During this past 52-week period, the fund has traded between $38.39 and $63.63.
The ETF has a beta of 1.17 and standard deviation of 35.81% for the trailing three-year period, making it a high risk choice in the space. With about 128 holdings, it effectively diversifies company-specific risk.
Alternatives
ALPS Medical Breakthroughs ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, SBIO is a good option for those seeking exposure to the Health Care ETFs area of the market. Investors might also want to consider some other ETF options in the space.
Vanguard Health Care ETF (VHT - Free Report) tracks MSCI US Investable Market Health Care 25/50 Index and the Health Care Select Sector SPDR ETF (XLV - Free Report) tracks Health Care Select Sector Index. Vanguard Health Care ETF has $16.03 billion in assets, Health Care Select Sector SPDR ETF has $32.67 billion. VHT has an expense ratio of 0.10% and XLV charges 0.12%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Should You Invest in the ALPS Medical Breakthroughs ETF (SBIO)?
The ALPS Medical Breakthroughs ETF (SBIO - Free Report) was launched on 12/31/2014, and is a passively managed exchange traded fund designed to offer broad exposure to the Healthcare - Broad segment of the equity market.
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Healthcare - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 14, placing it in bottom 13%.
Index Details
The fund is sponsored by Alps. It has amassed assets over $205.86 million, making it one of the average sized ETFs attempting to match the performance of the Healthcare - Broad segment of the equity market. SBIO seeks to match the performance of the Poliwogg Medical Breakthroughs Index before fees and expenses.
The Poliwogg Medical Breakthroughs Index captures research & development opportunities in the pharmaceutical industry. It consists of small-cap and mid-cap pharmaceutical and biotechnology stocks listed on US stock exchanges that have one or more drugs in either Phase II or Phase III US FDA clinical trials.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.50%, making it on par with most peer products in the space.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, Tgtxtg Therapeutics Inc. Accounts for about 3.22% of total assets, followed by Legnlegend Biotech Corp. And Aplsapellis Pharmaceuticals Inc.
The top 10 holdings account for about 26.24% of total assets under management.
Performance and Risk
So far this year, SBIO has lost about -14.87%, and it's up approximately 5.42% in the last one year (as of 08/04/2021). During this past 52-week period, the fund has traded between $38.39 and $63.63.
The ETF has a beta of 1.17 and standard deviation of 35.81% for the trailing three-year period, making it a high risk choice in the space. With about 128 holdings, it effectively diversifies company-specific risk.
Alternatives
ALPS Medical Breakthroughs ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, SBIO is a good option for those seeking exposure to the Health Care ETFs area of the market. Investors might also want to consider some other ETF options in the space.
Vanguard Health Care ETF (VHT - Free Report) tracks MSCI US Investable Market Health Care 25/50 Index and the Health Care Select Sector SPDR ETF (XLV - Free Report) tracks Health Care Select Sector Index. Vanguard Health Care ETF has $16.03 billion in assets, Health Care Select Sector SPDR ETF has $32.67 billion. VHT has an expense ratio of 0.10% and XLV charges 0.12%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.