State Street SPDR S&P Biotech ETF

XBI

Market cap $10.5B

Invesco Pharmaceuticals ETF offers a higher dividend yield and lower five-year beta than State Street SPDR S&P Biotech ETF State Street SPDR S&P Biotech ETF holds 155 securities compared to 30 in Invesco Pharmaceuticals ETF Invesco Pharmaceuticals ETF has experienced a significantly smaller max drawdown of 17.5% over the last five years, compared to 54% for State Street SPDR S&P Biotech ETF

Biotechnology stocks like Illumina, Eli Lilly and Exelixis have quietly turned into the new market leaders.

Current biotech euphoria is driven by fundamentals and M&A appetite, says Jonathan Faison, who runs ROTY Biotech Community. Focusing on high-conviction, late-stage and commercial biotech names with strong balance sheets, strategic value, and long-lived intellectual property.

Biotech is having a moment, and the numbers are hard to ignore. The SPDR S&P Biotech ETF (NYSEARCA:XBI) climbed 17.27% over the trailing month ending July 1, 2026, a run that would look right at home in the AI trade.

June has been a month full of excitement in the ETF market. While commercial space and AI infrastructure attracted a significant amount of investor attention, biotechnology exposure comprises four out of the five top-performing equity ETFs as of June 29.

Jared Holz, Mizuho, joins 'Power Lunch' to discuss the recent performance in the healthcare sector, why sentiment has turned and much more.

Big pharma's patent cliff risk is somewhat overstated, as layered IP and litigation often extend exclusivity beyond headline expiries. Incremental innovation—new formulations, improved delivery, and higher dosing—effectively extends product lifecycles and drives shareholder value.

LLY, ABBV, BIIB and JNJ hit new 52-week highs as biotech rallies, with company-specific pipeline, approvals and deal activity adding momentum.

Shares of AbbVie, Eli Lilly and Johnson & Johnson were on track to hit all-time highs Friday, in the latest signal that investor appetite for the biopharmaceutical sector is back.

The biotechnology sector has broken out of its multiyear bear market. As macroeconomic headwinds moderate and regulatory environments stabilize, biotech ETFs are surging.