ETFs are some of the most valuable investing tools. Not only do they offer solid diversification, they do so at low cost. Look at the SPDR S&P Biotech ETF (XBI), for example. With an expense ratio of 0.53%, the $79 ETF offers exposure to top biotech names such as Horizon Therapeutics (HZNP), Moderna (MRNA), Biogen (BIIB), Gilead Sciences (GILD) and dozens more.

Granted, the XBI didn’t have a great year, like most other stocks.

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However, if the XBI ETF can break from consolidation around $78, I’d like to see it refill its bearish gap around $110. Even Baird analyst Mike Perrone, CFA appears bullish, noting, “Healthcare tends to perform relatively well during periods of economic slowdown or recession as the sector is regarded as acyclical/defensive, and in recent months we have seen positive inflows into healthcare broadly given the current weak economic backdrop.”


Ian Cooper