This Biotech ETF Is Still Well Below Its 2021 Peak. Analysts Say That Is Exactly Why to Buy It.

2 hours ago 2

John Seetoo

Fri, April 3, 2026 astatine 9:17 AM CDT 5 min read

The State Street SPDR S&P Biotech ETF (XBI) has gained 58% implicit the past twelvemonth and trades astatine $128, with imaginable for astir 50 points of upside to scope its 2021 all-time precocious of $175. Top holdings see Moderna (2.25%), Roivant Sciences (1.74%), and Amgen (1.50%), and the money arsenic weights 145 biotech stocks alternatively than utilizing market-cap weighting, giving it stronger vulnerability to smaller companies that payment from FDA approvals and M&A announcements.
Goldman Sachs and Mizuho analysts are bullish connected biotech for 2026 owed to anticipated Federal Reserve complaint cuts that volition trim financing costs for objective trials, a projected 15%+ surge successful biotech M&A enactment from Big Pharma companies seeking pipeline replacements, and AI’s quality to compress cause find timelines from a decennary to 2-3 years.
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The biotech manufacture has been a robust roller-coaster implicit the past fractional decade. The State Street SPDR S&P Biotech ETF (NYSE: XBI), which tracks the biotech information of the S&P 500, started successful January 2021 arsenic precocious arsenic $175, erstwhile it was the tallness of the pandemic. Since then, it has dropped arsenic overmuch arsenic implicit 50%, to $63 (in 2023), making its mode to $104, past plummeting backmost down to $66 successful April 2025 aft President Trump’s tariff announcements. XBI has since climbed backmost to the $128 portion astatine the clip of this writing. This inactive leaves a astir 45 constituent upside earlier method all-time precocious absorption is hit.

Biotech expert Salveen Richter of Goldman Sachs was interviewed connected CNBC, expressing a bullish sentiment connected biotech for the remainder of 2026. Jared Holz of Mizuho has echoed these aforesaid prognostications.

XBI has $8 cardinal AUM and 145 biotech companies successful its portfolio.

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An ETF designed to way the S&P Biotechnology Select Industry Index, XBI has gained +58% successful the past year. Liquidity is not a concern, with an mean regular measurement of 10 cardinal shares. At $8 cardinal nett assets, it’s 1 of the largest Healthcare assemblage ETFs successful the marketplace astatine present.

XBI has a twist to its composition: portion it tracks the S&P Biotechnology Select Industry Index, XBI arsenic weights its astir 145 stocks. This gives a stronger tilt towards smaller companies that whitethorn grounds surges of buying enactment owed to caller breakthroughs, FDA proceedings approvals, M&A announcements, oregon different events that would not registry successful a market-cap weighted ETF. TipRanks has a 55% “strong buy” statement standing for XBI.

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