"The SPDR S&P Pharmaceuticals ETF (NYSEARCA: XPH) offers broad pharmaceutical exposure at a 0.35% expense ratio, with holdings spread nearly equally across large-cap names like Eli Lilly, Merck, and Bristol-Myers Squibb alongside smaller biotech and specialty pharma firms. The top holding carries just a 2.3% weight, keeping concentration risk low."
"The SPDR S&P Bank ETF (NYSEARCA: KBE) holds over 100 bank stocks and trades at $63.79, up 13.3% over the past year, with a 2.4% dividend yield and 0.35% expense ratio. The macro setup is constructive. The 10-year Treasury yield sits at 4.04% while the 10Y-2Y spread is a positive 0.60%, in the 75.9th percentile of the past 12 months."
Several ETFs trading below market attention offer compelling value propositions across multiple sectors. XPH provides pharmaceutical exposure at 0.35% expense ratio with diversified holdings and modest concentration risk, having returned 31.4% annually despite a modest five-year return suggesting room for growth. KBE offers banking sector access with a 2.4% dividend yield, benefiting from a positively sloped yield curve that supports net interest margins. VB represents small-cap breadth at minimal cost. These funds combine low expense ratios, sector diversification, and favorable macroeconomic conditions, making them structurally sound investments for investors seeking exposure without premium valuations.
Read at 24/7 Wall St.
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