ALPS Medical Breakthroughs ETF

SBIO

Market cap $99.3M

In the shifting landscape of ETFs, many funds claim to offer exposure to innovation. Technology plays a key role as a growth industry and a driver for performance across the economy overall, as well.

Looking to add some diversification and upside to your equities allocation? While the broader tech space has largely relied on just a handful of names, smaller subcategories in innovative tech also have a role to play.

The tech ETF space offers plenty of important questions for investors.

Biotech stocks and related ETFs are in the midst of a lengthy period of underperformance. For the three years ending July 9, the largest ETF in the category returned just 11%.

Outlook for pharma sector as Trump pushes for regulatory changes. The impact of tariffs on drugmakers.

It's understandable investors are frustrated with broader measures of small-cap equities. They've been hearing about the possibility of smaller stocks outperforming larger counterparts for a while.

With tech earnings arriving, many investors are still likely fearing a downturn for key information technology stocks. The so-called Magnificent Seven stocks delivered significant performance for investors last year.

Investors cooled to the healthcare sector in 2024, which dramatically trailed global and US equity markets for the year. any investors are now asking: how will the policy changes under a new US administration affect healthcare companies?

It's been a long road of disappointment for healthcare stocks. And biotechnology names have been among the worst offenders.

ALPS Medical Breakthroughs ETF is rated Hold due to high fees, low yield, and mixed performance compared to other healthcare ETFs. The SBIO ETF focuses on small and mid-cap biotech companies with drugs in Phase II or III FDA trials, offering targeted exposure to medical breakthroughs. Despite an aging population driving healthcare demand, sector headwinds and government budget pressures make healthcare stocks less attractive for generating Alpha.