Exchange-Traded Funds (ETFs) have redefined the investment landscape, providing investors with diversified exposure to various sectors and asset classes. In this article, we will conduct an in-depth comparison between two prominent ETFs: XBI (SPDR S&P Biotech ETF) and PBE (Invesco Dynamic Biotechnology & Genome ETF). We'll explore key aspects including ETF tickers, full names, issuers, sectors, top holdings, capitalization, investment strategy, tracking methods, and exposure.
XBI and PBE are both ETFs that offer exposure to the biotechnology and genome sector. XBI, managed by State Street Global Advisors, seeks to track the S&P Biotechnology Select Industry Index, while PBE, managed by Invesco, follows the Dynamic Biotechnology & Genome Intellidex Index. Let's delve deeper into the nuances of these ETFs to understand their differences and potential benefits.
The XBI ETF is focused on the biotechnology sector, comprising companies engaged in cutting-edge medical research and development. Its top holdings include companies like Moderna, Amgen, and Gilead Sciences. On the other hand, PBE's portfolio includes companies with innovative genomic technologies. Understanding the sectors and top holdings is crucial for investors to grasp the underlying assets and potential risks associated with each ETF.
XBI overlap XBI VS PBE: A Comprehensive Comparison of ETFs
XBI has garnered substantial assets under management (AUM) due to its popularity among investors interested in the dynamic biotech sector. PBE, with its focus on genome-related companies, follows a different investment strategy. These varying capitalizations and strategies result in distinct risk-return profiles, necessitating careful consideration by investors aiming to align their investments with specific goals.
XBI tracks the performance of the biotechnology sector by replicating the S&P Biotechnology Select Industry Index. PBE, on the other hand, employs an index-based approach to offer exposure to companies involved in genome research and applications. The difference in tracking methods reflects the contrasting nature of the sectors these ETFs target, enabling investors to make informed decisions based on their investment preferences.
XBI and PBE stand as distinctive ETFs, each catering to investors seeking exposure to the exciting fields of biotechnology and genomics. To gain deeper insights into their holdings, correlations, overlaps, and other pertinent information, investors can turn to ETF insider. This user-friendly app offers valuable data on these financial instruments and more, empowering investors to make well-informed decisions.
Disclaimer: This article does not provide any investment advisory services.
Sources:
SPDR S&P Biotech ETF (XBI) Fact Sheet
Invesco Dynamic Biotechnology & Genome ETF (PBE) Overview
XBI ETF issuer
XBI ETF official page