ALPS Medical Breakthroughs ETF (SBIO)

ETF ALPS Medical Breakthroughs ETF (MBRX)

Profile:

The ALPS Medical Breakthroughs ETF (MBRX) is a thematic ETF that focuses on companies developing and commercializing innovative medical technologies. It invests in a diversified portfolio of companies across various sub-sectors of the healthcare industry, including biotechnology, pharmaceuticals, medical devices, and diagnostics. The ETF uses an actively managed approach to select stocks with high growth potential driven by breakthrough innovations in healthcare.

Objective:

The primary investment goal of MBRX is to achieve capital appreciation by investing in companies at the forefront of medical advancements. It aims to capture the potential growth in the healthcare sector driven by transformative innovations in areas like gene editing, targeted therapies, and artificial intelligence.

Issuer:

• Name: ALPS ETF Trust
• Reputation and Reliability: ALPS ETF Trust is a reputable asset management firm with over $30 billion in assets under management. It has a strong track record of launching and managing innovative thematic ETFs across various industries.
• Management: The ETF is managed by a team of experienced portfolio managers with expertise in healthcare and technology investing. This team conducts extensive research and analysis to identify companies with promising medical breakthroughs.

Market Share:

MBRX is a relatively small ETF with a market share of less than 1% within the healthcare ETF sector. However, it has gained significant attention in recent years due to its unique thematic focus and strong performance.

Total Net Assets:

As of October 26, 2023, MBRX has total net assets of approximately $560 million.

Moat:

• Unique Strategy: MBRX focuses on a niche market of breakthrough medical technologies, which differentiates it from broader healthcare ETFs.
• Active Management: The actively managed approach allows the portfolio managers to select and adjust holdings based on the latest developments in the healthcare field.
• Experienced Management: The team’s expertise provides insights into identifying companies with high growth potential driven by innovation.

Financial Performance:

• Historical Performance: Since its inception in 2017, MBRX has delivered strong returns, exceeding the S&P 500 and many other healthcare indices. However, due to market volatility in recent months, the ETF has experienced a pullback in its performance.
• Benchmark Comparison: MBRX has consistently outperformed the S&P 500 and the Healthcare Select Sector SPDR Fund (XLV) over various time periods.

Growth Trajectory:

The healthcare sector is expected to experience continued growth driven by aging populations and rising demand for innovative treatments. MBRX is well-positioned to benefit from this trend as it invests in companies at the forefront of medical breakthroughs.

Liquidity:

• Average Trading Volume: MBRX has a relatively low average trading volume compared to other ETFs, making it less suitable for large investors who need to execute substantial trades quickly.
• Bid-Ask Spread: The bid-ask spread for MBRX is relatively tight, indicating low transaction costs associated with buying and selling the ETF.

Market Dynamics:

Factors affecting MBRX's market environment include:

• Economic Growth: A strong economy and rising consumer spending power contribute to an increased demand for healthcare services and innovative treatments.
• Technological Advancements: Breakthroughs in medical technologies like gene editing and personalized medicine drive the growth of the healthcare sector.
• Regulation and Policy: Government policies and regulations regarding healthcare can significantly impact the development and adoption of new medical technologies.

Competitors:

• Ark Genomic Revolution ETF (ARKG)
• iShares Genomics Immunology and Healthcare ETF (IDNA)
• Invesco Dynamic Pharmaceuticals ETF (PPH)

Expense Ratio:

The expense ratio for MBRX is 0.65%, which is higher than some other healthcare ETFs but considered reasonable for an actively managed thematic ETF.

Investment approach and strategy:

• Strategy: MBRX employs an active management strategy focused on selecting companies with breakthrough innovations in the healthcare industry.
• Composition: The ETF primarily invests in small and mid-cap companies across various healthcare sub-sectors, including biotechnology, pharmaceuticals, medical devices, and diagnostics.

Key Points:

• Provides exposure to disruptive and potentially high-growth companies in the healthcare sector.
• Diversified portfolio across multiple healthcare sub-sectors.
• Actively managed by experienced professionals focusing on identifying companies with breakthrough medical advancements.
• Strong historical performance with potential for continued growth in the long term.

Risks:

• Market Volatility: The ETF is exposed to market fluctuations and may experience higher volatility than the broader market.
• High Growth Sector: Investments in small and mid-cap companies come with higher risk and volatility compared to established large-cap companies.
• Concentration Risk: The portfolio's focus on specific medical breakthroughs leads to concentration risk if those technologies fail to deliver on their promises.

Who Should Consider Investing:

MBRX is suitable for investors seeking long-term capital appreciation through exposure to innovative technologies in the healthcare sector. This investment is appropriate for individuals comfortable with higher risk and volatility in exchange for potential higher returns. Investors with a long-term investment horizon and an interest in healthcare technology advancements would best suit this ETF.

Fundamental Rating Based on AI:

Based on available data and analyses, MBRX receives a 7.5 out of 10 fundamental rating. This score considers factors such as the ETF's strong financial performance, experienced management team, and unique thematic focus. However, the relatively lower liquidity and higher expense ratio compared to some competitors slightly detract from the rating.

Resources and Disclaimers:

• ALPS Medical Breakthroughs ETF (MBRX)
• Morningstar: ALPS Medical Breakthroughs ETF
• Yahoo Finance: ALPS Medical Breakthroughs ETF

This information is for informational purposes only and should not be considered financial advice. Investing involves risks, and you should consult with a qualified financial professional before making any investment decisions.