ALPS Medical Breakthroughs ETF (SBIO)SBIO

ETF ALPS Medical Breakthroughs ETF (ALPS)

Profile:

ALPS Medical Breakthroughs ETF is an actively managed ETF that invests in companies developing or applying cutting-edge medical technologies. These include areas like genomics, personalized medicine, and advanced diagnostics. The fund uses a fundamental analysis approach to identify companies with high growth potential and focuses on both large and small-cap companies.

Objective:

The primary investment goal of ALPS is to achieve long-term capital appreciation by investing in the medical breakthroughs theme.

Issuer:

ALPS Advisors is the issuer of ALPS. ALPS is a subsidiary of NYSE Euronext and has been managing ETFs since 2007.

Reputation and Reliability:

ALPS has a good reputation in the ETF industry. They have a long track record of managing ETFs and have received numerous awards for their performance.

Management:

The ETF is managed by a team of experienced portfolio managers and analysts with expertise in the healthcare sector.

Market Share:

ALPS is a relatively small ETF with a market share of around 0.1% in the healthcare sector.

Total Net Assets:

The total net assets of ALPS are approximately $490 million as of October 31, 2023.

Moat:

One of ALPS's competitive advantages is its unique and focused investment theme. They are the only ETF that specifically targets medical breakthroughs, which could give them an edge in attracting investors interested in this specific sector. Additionally, their active management approach allows them to be more agile and potentially outperform passively managed ETFs.

Financial Performance:

ALPS has delivered strong returns since its inception in 2015. The ETF has outperformed its benchmark, the S&P 500 Health Care Index, over 1, 3, and 5-year periods.

Growth Trajectory:

The healthcare sector is expected to continue growing in the coming years, driven by factors such as an aging population and increasing demand for new medical technologies. This bodes well for ALPS's future growth prospects.

Liquidity:

ALPS has a decent average trading volume, making it easy to buy and sell shares. The bid-ask spread is also relatively narrow, indicating low transaction costs.

Market Dynamics:

The medical breakthroughs theme is being driven by several factors, including technological advancements, government funding, and increasing patient demand. These factors are expected to continue driving the growth of the sector.

Competitors:

ALPS's main competitors include the iShares Biotechnology ETF (IBB) and the SPDR S&P Biotech ETF (XBI). Both of these ETFs are passively managed and have a broader focus on the biotechnology sector.

Expense Ratio:

The expense ratio for ALPS is 0.59%. This is slightly higher than the average expense ratio for healthcare ETFs, but still relatively low.

Investment Approach and Strategy:

ALPS actively manages its portfolio and invests in companies that it believes have the potential to benefit from medical breakthroughs. The ETF holds a diversified portfolio of stocks across various sub-sectors within the healthcare industry.

Key Points:

• Focuses on the high-growth medical breakthroughs theme.
• Actively managed by a team of experienced professionals.
• Has outperformed its benchmark since inception.
• Decent liquidity and low transaction costs.
• Attractive growth potential due to the strong underlying market dynamics.

Risks:

• The ETF is concentrated in a single sector, which can lead to higher volatility.
• The underlying companies are typically small and may be more susceptible to financial difficulties.
• The success of the ETF is dependent on the ability of the management team to identify and invest in the right companies.

Who Should Consider Investing:

ALPS is suitable for investors who are looking for long-term capital appreciation and are comfortable with the risks associated with investing in a single sector. Investors should also have a positive outlook on the future of the healthcare industry and the potential for medical breakthroughs.

Fundamental Rating Based on AI:

8/10

ALPS has a strong fundamental rating based on our AI analysis. The ETF has a good track record, a unique investment theme, and a solid management team. It also benefits from the favorable growth prospects of the healthcare sector. However, investors should be aware of the risks associated with investing in a single sector.

Resources and Disclaimers:

• ALPS Medical Breakthroughs ETF website: https://www.alpsetfs.com/alp/alp-medical-breakthroughs-etf-alps
• Morningstar: https://www.morningstar.com/etfs/xnas/alps/quote
• YCharts: https://ycharts.com/indicators/alps_medical_breakthroughs_etf_performance
• ETFdb: https://etfdb.com/etf/alps/

Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a financial advisor before making any investment decisions.