SPDR S&P Biotech ETF: Of Headwinds And Tailwinds

Dec. 05, 2021 8:03 AM ETSPDR® S&P Biotech ETF (XBI)6 Comments

Summary

  • I had rated the SPDR S&P Biotech ETF as bullish in July 2020. The ETF’s price spiked by 51% thereafter, and later, regressed to its mean.
  • Historical data reveal that the ETF delivered solid price gains in the long run, but current market conditions suggest that it faces many headwinds in the near term.
  • The price data also reveal that the ETF has been a peer outperformer in the last 3–10 years.
  • I do much more than just articles at The Lead-Lag Report: Members get access to model portfolios, regular updates, a chat room, and more. Learn More »

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"When you run against a headwind, your speed slows down and you have to push harder. You can feel the headwind. When you have a tailwind pushing you, it is a force that propels you forward." – Dolly Chugh


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This article was written by

Michael A. Gayed, CFA profile picture
30.51K Followers
Michael A. Gayed is portfolio manager, and author of five award-winning research papers on market anomalies and investing. He has a BS with a double major in Finance & Management from NYU Stern School of Business, and is a CFA Charterholder. Michael runs the investing group The Lead-Lag Report, focused on helping investors outperform in all market conditions. It offers a tactical, data-driven approach to investing, to achieve long-term success even in the face of uncertainty. With increasing market volatility, it's essential to understand risk-on/risk-off signals, seize high-yield opportunities, and leverage award-winning research to maximize returns. Learn More.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

This writing is for informational purposes only and Lead-Lag Publishing, LLC undertakes no obligation to update this article even if the opinions expressed change. It does not constitute an offer to sell, a solicitation to buy, or a recommendation regarding any securities transaction. It also does not offer to provide advisory or other services in any jurisdiction. The information contained in this writing should not be construed as financial or investment advice on any subject matter. Lead-Lag Publishing, LLC expressly disclaims all liability in respect to actions taken based on any or all of the information on this writing.

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