ALPS Medical Breakthroughs ETF

SBIO

Market cap $144M

After a 50%+ run from lows last April through highs in mid-January, the Biotech group has been trending sideways over the last few months. Biotech hasn't garnered much attention lately, with all the coverage of the Iran War and the AI Doom trade that's been taking down software stocks even as AI infrastructure stocks continue to surge.

A surge in biotech M&A activity drove sharp gains across holdings in the ALPS Medical Breakthroughs ETF (SBIO) during March, with two of the fund's holdings becoming acquisition targets in deals worth a combined $8.1 billion. SBIO gained 8.4% over the past month and rose 9.4% over the past three months.

Iran war reshaped Q1 markets: energy, shipping & lithium ETFs surged while tech and airlines lagged as inflation fears and oil shocks rattled sentiment.

Biotechnology stocks and the related ETFs bounced back in significant fashion last year. There's been some cooling of that trend to start 2026, but that could be just the opportunity some investors have been waiting for to get involved with ETFs such as the ALPS Medical Breakthroughs ETF (SBIO).

The biotech M&A market is heating up as pharmaceutical companies confront a looming patent cliff that will strip $200 billion to $250 billion in branded medicine sales by 2032, according to an ING report published in January.

Wall Street put up a modest show in the final quarter of 2025, with the S&P 500 advancing only 1.9%, the Dow Jones gaining 3.3% and the Nasdaq Composite adding about 2.1%. The small-cap index Russell 2000 added 1.6% during that period.

Biotech and natural resources funds led the ALPS ETFs lineup in 2025, with both strategies delivering returns above 45%, according to ETF Database. The ALPS Medical Breakthroughs ETF (SBIO) gained just over 57% through December 23, topping all ALPS products for the year, according to ETF Database.

Biotech and natural resources funds led the ALPS ETFs lineup in 2025, with both strategies delivering returns above 45%, according to ETF Database. The ALPS Medical Breakthroughs ETF (SBIO) gained just over 57% through December 23, topping all ALPS products for the year, according to ETF Database.

The ALPS Medical Breakthroughs ETF (SBIO) is trading close to its 52-week high of $51.87 after surging 10.51% in November, powered by a wave of positive clinical trial data and renewed merger activity in small- and midcap biotech companies, according to research from SS&C ALPS Advisors. The biotech ETF outpaced the Nasdaq Biotechnology Index's 8.

The ALPS Medical Breakthroughs ETF has staged a remarkable comeback, outperforming despite a challenging macro backdrop and small-cap weakness. SBIO benefited from a rebound in FDA drug approvals, positive clinical news, and increased M&A activity as large pharma seeks pipeline replenishment. Risks remain high for SBIO, including sector volatility, unprofitability, sensitivity to interest rates, and potential regulatory or political headwinds.