ETFs
IBB, XBI: 2 Biotech ETFs With Huge Upside Potential, Analysts Say
BioTech ETFs (exchange traded funds) offer investors exposure to the biotechnology sector. This sector is known for its medical and technological advancements and therefore has the potential for significant gains. Today, we have selected two such ETFs: IBB And XBI – with an upside potential of more than 30% forecast by analysts over the next twelve months.
Let’s take a closer look at what Wall Street thinks about these two ETFs.
iShares Biotechnology Exchange Traded Fund (ETF) (IBB)
The iShares Biotechnology ETF seeks to track the performance of the NYSE Biotechnology Index, which contains U.S.-listed stocks in the biotechnology sector. IBB manages $7.40 billion in assets, with its top 10 holdings representing 52.06% of the portfolio. Importantly, it has a low expense ratio of 0.45%. The IBB ETF has returned 1.13% so far in 2024.
On TipRanks, the IBB ETF has a Moderate Buy consensus rating. Of the 211 stocks held, 190 have a Buy rating, 19 have a Hold rating, and two have a Sell rating. Average analyst price target on IBB ETF of $188.38 implies an upside potential of 37.24% from current levels.
SPDR S&P Biotech Exchange Traded Fund (XBI)
The SPDR S&P Biotech ETF tracks the performance of the S&P Biotechnology Select Industry Index. XBI has $7.13 billion in assets under management, with its top 10 holdings contributing 28.46% to the portfolio. Its expense ratio is 0.35%. Interestingly, XBI generated a return of 4% year to date.
On TipRanks, the XBI ETF has a Strong Buy consensus rating. Of the 140 stocks held, 132 have a Buy rating and eight have a Hold rating. Average analyst price target on XBI ETF of $154.74 implies an upside potential of 66.91% from current levels.
Final thoughts
ETFs are a low-cost, diversified, and transparent way to participate in the market. Investors looking for potential ETF recommendations may want to consider IBB and XBI given the massive upside that analysts are projecting.