Although SBIO does not hold companies with market caps in excess of $5 billion, that does not mean the ETF presents significant risks to investors. SBIO’s underlying index only features companies with enough cash to survive at least two years at current burn rates.
SBIO’s largest holding is a 4.3% weight to NPS Pharmaceuticals (NasdaqGS: NPSP). The new ETF’s other top 10 holdings include Receptos (NasdaqGS: RCPT), Seattle Genetics (NasdaqGS: SGEN) and Akorn (NasdaqGS: AKRX).
SBIO Index Characteristics
Tables Courtesy: ALPS
ETF Trends editorial team contributed to this post.