ETF Trends publisher Tom Lydon discussed SPDR S&P Biotech ETF (NYSEArca:XBI) on this week’s “ETF of the Week” podcast with Chuck Jaffe on the MoneyLife Show.

Deregulation/tax cuts from the Trump administration could help large biotechs accumulate more cash, which in turn could help fuel merger & acquisition activity in an ongoing low-rate environment.

XBI tracks a modified equal-weight index that’s weighted micro-caps 26.1%, small-caps 37.1%, mid-caps 18.2%, large-caps 12.5%, and mega-caps 6.1%.

It has a greater emphasis on smaller companies that could help this equal-weight strategy outperform if there is increased M&A activity.

Click here to listen to the podcast.


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