5 Best Biotech ETFs To Buy

2. Health Care Select Sector SPDR Fund (NYSE:XLV)

5-Year Performance as of August 4: 48.24%

Health Care Select Sector SPDR Fund (NYSE:XLV) seeks to achieve investment results that closely align with the price and yield performance of the Health Care Select Sector Index. This ETF aims to offer targeted exposure to companies operating in healthcare-related industries, including pharmaceuticals, health care equipment and supplies, health care providers and services, biotechnology, life sciences tools and services, and health care technology. The fund was established on December 16, 1998, and has a low expense ratio of 0.10%. Health Care Select Sector SPDR Fund (NYSE:XLV)’s portfolio consists of 65 stocks.

AbbVie Inc. (NYSE:ABBV) is a top holding of Health Care Select Sector SPDR Fund (NYSE:XLV). On July 27, AbbVie Inc. (NYSE:ABBV) reported Q2 non-GAAP earnings per share of $2.91, beating market consensus by $0.10. The revenue of $13.87 billion also outperformed Street estimates by $350 million. 

According to Insider Monkey’s first quarter database, 75 hedge funds were bullish on AbbVie Inc. (NYSE:ABBV), compared to 73 funds in the prior quarter. Ken Griffin’s Citadel Investment Group is the largest stakeholder of the company, with 2.26 million shares worth $360.8 million. 

Baron Health Care Fund made the following comment about AbbVie Inc. (NYSE:ABBV) in its second quarter 2023 investor letter:

“Apart from stock selection, the Fund also benefited from its lower exposure to AbbVie Inc. (NYSE:ABBV), whose shares were down almost 15% in the Benchmark due to concerns about the company’s growth profile after the loss of exclusivity for lead drug Humira. We exited our position during the quarter. We sold AbbVie Inc. due to our less optimistic view of the company’s pipeline and long-term growth profile.”