5-Star ETFs Poised to Pop: SPDR S&P Biotech
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 (NYS: 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
|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.|
|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 (NAS: AMGN) (3.3%)|
Myriad Genetics (NAS: MYGN) (3.3%)
Celgene (NAS: CELG) (3.2%)
|Alternatives||iShares Nasdaq Biotechnology (NAS: IBB) |
Biotech HOLDRS (ASE: 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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At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.
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