Should You Invest in the ALPS Medical Breakthroughs ETF (SBIO)?

If you're interested in broad exposure to the Healthcare - Broad segment of the equity market, look no further than the ALPS Medical Breakthroughs ETF (SBIO), a passively managed exchange traded fund launched on December 31, 2014.

An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.

Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Healthcare - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 10, placing it in bottom 38%.

Index Details

The fund is sponsored by Alps. It has amassed assets over $243.54 million, making it one of the average sized ETFs attempting to match the performance of the Healthcare - Broad segment of the equity market. SBIO seeks to match the performance of the Poliwogg Medical Breakthroughs Index before fees and expenses.

The S-Network Medical Breakthroughs Index captures research & development opportunities in the pharmaceutical industry. It consists of small-cap and mid-cap pharmaceutical and biotechnology stocks listed on US stock exchanges that have one or more drugs in either Phase II or Phase III US FDA clinical trials.

Costs

Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.

Annual operating expenses for this ETF are 0.5%, making it on par with most peer products in the space.

Sector Exposure and Top Holdings

ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.Looking at individual holdings, Crinetics Pharmaceuticals Inc. (CRNX) accounts for about 4.56% of total assets, followed by Apogee Therapeutics Inc. (APGE) and Cg Oncology Inc. (CGON).

The top 10 holdings account for about 32.04% of total assets under management.

Performance and Risk

Year-to-date, the ALPS Medical Breakthroughs ETF has added about 32.1% so far, and it's up approximately 82.83% over the last 12 months (as of 09/08/2026). SBIO has traded between $35.64 and $70.79 in this past 52-week period.

The ETF has a beta of 0.74 and standard deviation of 30.54% for the trailing three-year period, making it a high risk choice in the space. With about 107 holdings, it effectively diversifies company-specific risk.

Alternatives

ALPS Medical Breakthroughs ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, SBIO is a sufficient option for those seeking exposure to the Health Care ETFs area of the market. Investors might also want to consider some other ETF options in the space.

Vanguard Health Care Index Fund ETF Shares (VHT) tracks MSCI US Investable Market Health Care 25/50 Index and the State Street Health Care Select Sector SPDR ETF ETF (XLV) tracks Health Care Select Sector Index. Vanguard Health Care Index Fund ETF Shares has $19.41 billion in assets, State Street Health Care Select Sector SPDR ETF ETF has $44.58 billion. VHT has an expense ratio of 0.09%, and XLV charges 0.08%.

Bottom Line

To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.

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This article originally published on Zacks Investment Research (zacks.com).

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