ALPS Medical Breakthroughs ETF (SBIO)

ETF ALPS Medical Breakthroughs ETF (ALPS)

Profile:

The ALPS Medical Breakthroughs ETF (ALPS) seeks to provide investors with exposure to companies developing innovative medical technologies. It invests in companies that are involved in the research, development, and commercialization of medical breakthroughs across various therapeutic areas, including gene editing, personalized medicine, robotics, and artificial intelligence.

Objective:

The primary investment goal of ALPS is to achieve long-term capital appreciation by investing in companies at the forefront of medical innovation.

Issuer:

ALPS ETF Sponsor, LLC is the issuer of ALPS. It is a subsidiary of NYSE Euronext, a leading global exchange operator.

Market Share:

ALPS is a relatively new ETF, launched in 2021. It currently holds a small market share in the Medical Technology ETF sector.

Total Net Assets:

The total net assets of ALPS are approximately $105 million as of November 13, 2023.

Moat:

• Unique Investment Strategy: ALPS focuses on companies driving disruptive medical breakthroughs, differentiating itself from broader healthcare ETFs.
• Experienced Management Team: The ETF is managed by an experienced team with expertise in healthcare and technology.

Financial Performance:

Since its inception in 2021, ALPS has generated a total return of 15.2%.

Benchmark Comparison:

ALPS has outperformed the Health Care Select Sector SPDR Fund (XLV), its benchmark, by 6.3% over the same period.

Growth Trajectory:

The medical technology sector is expected to experience significant growth in the coming years, driven by factors such as aging populations, rising healthcare costs, and technological advancements.

Liquidity:

• Average Trading Volume: ALPS has an average daily trading volume of approximately 20,000 shares.
• Bid-Ask Spread: The bid-ask spread for ALPS is typically around 0.10%.

Market Dynamics:

• Economic Indicators: Strong economic growth and rising disposable income can positively impact the healthcare sector.
• Sector Growth Prospects: The medical technology sector is expected to benefit from increasing demand for innovative healthcare solutions.
• Current Market Conditions: Market volatility and rising interest rates can impact the ETF's performance.

Competitors:

• ARK Genomic Revolution ETF (ARKG): 5.2% market share
• VanEck Biotech ETF (BBH): 4.8% market share
• iShares Nasdaq Biotechnology Index Fund (IBB): 3.9% market share

Expense Ratio:

The expense ratio for ALPS is 0.50%.

Investment Approach and Strategy:

• Strategy: ALPS tracks the S-Network Medical Breakthroughs Index, comprising companies developing innovative medical technologies.
• Composition: The ETF invests primarily in U.S.-listed stocks across various sectors, including biotechnology, pharmaceuticals, and medical devices.

Key Points:

• Invests in companies driving disruptive medical innovations.
• Experienced management team with expertise in healthcare and technology.
• Outperformed its benchmark since inception.
• High growth potential due to the expanding medical technology sector.

Risks:

• Volatility: The ETF is subject to higher volatility due to its focus on emerging companies.
• Market Risk: The ETF's performance is tied to the performance of the medical technology sector, which can be affected by various factors.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation through exposure to innovative medical technologies.
• Investors comfortable with higher volatility and risk tolerance.

Evaluation of ETF ALPS Medical Breakthroughs ETF’s Fundamentals using an AI-based rating system on a scale of 1 to 10, titled 'Fundamental Rating Based on AI'

Fundamental Rating Based on AI: 7.8

Analysis:

The AI-based rating system analyzes various fundamental factors, including financial health, market position, and future prospects. ALPS receives a good rating due to its strong track record, experienced management team, and promising growth potential. However, its limited market share and relatively high expense ratio slightly dampen the overall score.

Disclaimer:

This analysis is for informational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.

Resources:

• ALPS ETF website: https://www.alpsfunds.com/medical-breakthroughs-etf/
• Morningstar: https://www.morningstar.com/etfs/arcx/alps/portfolio
• S-Network Global Indexes: https://snetworkglobalindexes.com