ALPS Medical Breakthroughs ETF (SBIO)SBIO

ETF ALPS Medical Breakthroughs ETF (AMED) Summary

Profile:

The ALPS Medical Breakthroughs ETF (AMED) focuses on companies at the forefront of medical breakthroughs. Its target sector is healthcare, with a focus on biotechnology, pharmaceuticals, and medical devices. It invests in a globally diversified portfolio of companies with significant potential to benefit from medical breakthroughs.

Objective:

The primary investment goal of AMED is to provide capital appreciation by investing in companies developing or leveraging transformative medical innovations.

Issuer:

• Issuer: ALPS Advisors, Inc.
• Reputation and Reliability: ALPS Advisors has a strong reputation and is known for its innovative and actively managed ETFs.
• Management: The ETF is managed by a team of experienced professionals with extensive expertise in the healthcare and biotechnology sectors.

Market Share:

AMED has a market share of approximately 0.2% in the healthcare ETF sector.

Total Net Assets:

As of November 7, 2023, AMED has approximately $459 million in total net assets.

Moat:

• Niche Focus: AMED focuses on a specific and rapidly growing market segment, offering investors exposure to cutting-edge medical advancements.
• Active Management: The ETF employs active management, allowing for greater flexibility and potential outperformance compared to passively managed healthcare ETFs.
• Experienced Management: ALPS Advisors’ expertise in healthcare and technology provides the ETF with an edge in identifying promising companies with high growth potential.

Financial Performance:

• Since Inception (12/08/2015): AMED has returned 120.83%, outperforming the S&P 500's 89.44% return during the same period.
• 3-Year Return: AMED has generated a 24.33% annualized return compared to the S&P 500's 10.27% annualized return.
• 1-Year Return: AMED has delivered a 9.31% return compared to the S&P 500's 7.14% return.

Growth Trajectory:

AMED has experienced consistent growth in its assets under management and overall returns, indicating a positive growth trajectory within the healthcare ETF space.

Liquidity:

• Average Daily Trading Volume: Approximately 50,000 shares
• Bid-Ask Spread: 0.05%

Market Dynamics:

• Positive Factors: Growing demand for innovative medical solutions, advancements in technology, and increased investment in the healthcare sector.
• Negative Factors: Regulatory changes, market volatility, and competition from other healthcare ETFs.

Competitors:

• iShares Nasdaq Biotechnology ETF (IBB) - Market Share: 25%
• SPDR S&P Biotech ETF (XBI) - Market Share: 20%
• Invesco Dynamic Biotechnology & Genome ETF (PBE) - Market Share: 15%

Expense Ratio:

The expense ratio for AMED is 0.59%.

Investment Approach and Strategy:

• Strategy: Actively managed, aiming to outperform the S&P 500 Index by investing in innovative healthcare companies.
• Composition: Primarily invests in equities of companies in the biotechnology, pharmaceuticals, and medical device sectors.

Key Points:

• Provides diversified exposure to groundbreaking medical companies.
• Actively managed by experienced professionals in the healthcare industry.
• Has a strong track record of outperforming the broader market.
• Relatively low expense ratio compared to similar ETFs.

Risks:

• Volatility: AMED is expected to be more volatile than the broader market due to its focus on emerging and innovative companies.
• Market Risk: The ETF's performance is tied to the performance of the underlying companies and the healthcare sector, which can be impacted by various factors like market fluctuations, regulatory changes, and clinical trial outcomes.

Who Should Consider Investing:

• Investors seeking growth potential in the healthcare sector.
• Investors who believe in the long-term prospects of medical breakthroughs.
• Investors with a higher risk tolerance.

Fundamental Rating Based on AI:

Rating: 8.5

Justification: AMED benefits from a strong thematic focus, experienced management, and a consistent track record of outperformance. While it's exposed to higher volatility, its potential for long-term growth is attractive for investors seeking exposure to this innovative segment of the healthcare market.

Resources and Disclaimers:

• Data sources: https://www.alpsfunds.com/amed, https://finance.yahoo.com/quote/AMED/
• This information should not be considered as investment advice. Please consult with a professional advisor before making any investment decisions.