XBI

XBI refers to the SPDR S&P Biotech ETF, which is a popular exchange-traded fund that seeks to track the performance of the S&P Biotechnology Select Industry Index. The fund primarily invests in biotechnology companies, which focus on the development and production of medications and therapies using biological processes. XBI gives investors exposure to the biotechnology sector, including companies involved in drug discovery, development, and diagnostics. It is characterized by its equal-weighted approach, meaning that it allocates its investments more equally among the various companies in the index, rather than proportionally to their market capitalization. As a result, XBI can provide a diversified investment in the biotech industry while potentially reducing concentration risk associated with larger firms.