Two Sector ETFs Are Quietly Outperforming the S&P 500 Without a Single AI Stock

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  • The State Street SPDR S&P Biotech ETF (XBI) gained 25.19% year-to-date through early November.

  • The iShares MSCI Global Silver and Metals Miners ETF (SLVP) surged 171.97% year-to-date as silver prices broke $57 per oz.

  • Both XBI and SLVP offer alternatives to ETFs heavily weighted in Magnificent 7 AI stocks.

  • Some investors get rich while others struggle because they never learned there are two completely different strategies to building wealth. Don’t make the same mistake, learn about both here.

Prognostications that the AI bubble is grossly overbought have been increasing. The fact that the Magnificent 7 AI stocks, such as Microsoft (NASDAQ: MSFT), Apple (NASDAQ: AAPL), Nvidia (NASDAQ: NVDA), and the others have led the S&P 500’s multi-year bull run has given numerous investors consternation over their portfolios. The S&P 500’s 16% YTD gains and the reality that the Magnificent 7 are widely held in hundreds, and potentially thousands of ETFs means that a repeat of the dotcom bubble burst could cause massive panic in the markets.

Retirees who are holding ETFs containing Magnificent 7 or other AI stocks like Palantir (NASDAQ: PLTR) might wish to diversify into other ETFs without AI exposure. The challenge is  in how to find such ETFs, given that thousands hold at least a few of the Magnificent 7 stocks and have had them for years.

Luckily, there are plenty of ETFs that focus on other sectors and boast some strong examples of substantial, double-digit YTD gains of their own. Two that may be worth consideration are in the biotech arena and in mining: The State Street SPDR S&P Biotech ETF (NYSE: XBI) and iShares MSCI Global Silver and Metals Miners ETF (CBOE: SLVP).

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The biotech industry is on a strong bull run without any AI stocks, thanks to new strides in cancer treatment, tissue regenerations, and personalized medicine.

The biotech industry, aligned with healthcare, has had a choppy trajectory since its pandemic era highs. XBI, which tracks the S&P Biotechnology Select Industry portion of the S&P Total Market Index, debuted on January 31, 2006. Thanks to new breakthrough developments in treatments for various cancers, gene editing, cell therapies, obesity, and tissue engineering related to greater precision medicine (i.e., personalized, custom treatment),  biotech has exhibited a strong 2025. Compared to the overall S&P 500 average year-to-date return of 16%, XBI is boasting a 25.19% YTD return as of early November.  An overview of XBI is below:

YTD Gain

25.19%

52-wk. Mkt. range

$66.66-$127.47

Net Assets

$8.334 billion

Avg Daily Volume

10.59 million shares

Yield

0.06%

1-Year Return

16.25%

Expense Ratio

0.35%

3-Year Return

11.19%

NAV 

$31.42

5-Year Return

0.06%

Beta

1.26

10-Year Return

5.52%

XBI’s top 10 stocks include many names not well-known by the average investor, but are huge contributors to the sector’s gains.

The Wall Street analyst 12-month price projection target consensus for XBI is $159.95, with a high of $223.38.  However, its relatively high beta categorizes as a riskier ETF than average.

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Thanks to the surge in physical silver prices, SLVP, an ETF that specializes in silver mining stocks, has a mind-boggling YTD return of 171.97%.

It’s no secret that gold and silver spot prices are setting new high price records and the hoarding of physical precious metals by banks and institutions is not showing any end in sight. In the aftermath of London’s inventory shortage due to the influx of Indian Diwali season buyers, China’s Shanghai Gold Exchange is now experiencing similar low inventory risk. As a result, spot silver prices broke $57 per oz. on November 28th.

A previous 24/7 Wall Street article looked at silver mining stocks, which ultimately control future silver supply, and featured certain companies responsible for regional mining operations. SLVP is an ETF that includes a cross section of the top mining companies whose stocks trade in the US, Canada, and Mexico. Thanks to the surge in physical silver prices, SLVP has a mind-boggling YTD return of 171.97%. Its inception date is January 31, 2012. An overview of SLVP is below:

YTD Gain

171.97%

52-wk. Mkt. range

$11.34-$32.44

Net Assets

$662.85 million

Avg Daily Volume

508,020 shares

Yield

0.46%

1-Year Return

108.26%

Expense Ratio

0.39%

3-Year Return

46.32%

NAV 

$31.42

5-Year Return

13.42%

Beta

1.19

10-Year Return

18.22%

SLVP’s top holdings feature the following companies:

  1. Hecla Mining (NYSE: HL) – 15.46%

  2. Industrias Peñoles (PE&OLES.MX) – 11.66%

  3. Fresnillo PLC (OTC: FNLPF) – 9.99%

  4. First Majestic Silver (NYSE: AG) – 8.01%

  5. Endeavour Silver (TSX: EDR) – 4.94%

  6. Discovery Silver (TSX: DSV) – 4.72%

  7. Wheaton Precious Metals (NYSE: WPM) – 4.17%

  8. Agnico Eagle Mines (NYSE: AEM) – 4.13%

  9. Newmont Corp. (NYSE: NEM) – 3.99%

  10. Aya Gold and Silver (TSX: AYA) – 3.74%

A consensus of 30 Wall Street analysts project SLVP’s 12-month price target to be $32.65 with a high of $40.11.  However, this apparently was before silver cracked the $57 per oz. target, so these numbers will likely be revised.

While SLVP and XBI aren’t generating income any better than S&P 500 ETFs, their superior gains can more than compensate for any market downturns that will likely occur if the AI bubble does indeed burst.

 

 

 

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