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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 ) is up 25.19% year-to-date since early November.

  • The iShares MSCI Global Silver and Metals Miners ETF ( SLVP ) is up 171.97% year-to-date as silver prices break $57 an ounce.

  • Both XBI and SLVP offer options for ETFs heavily weighted to the grand 7 AI stocks.

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

Predictions that the AI ​​bubble is grossly overblown are mounting. The fact that magnificent 7 AI stock, viz Microsoft (NASDAQ: MSFT), apple (NASDAQ: AAPL), Nvidia (NASDAQ: NVDA)And others have led the S&P 500’s multi-year bull run that has caused many investors to panic in their portfolios. The S&P 500’s 16% YTD gains and the fact that the Magnificent 7 is widely held in hundreds, and potentially thousands of ETFs means a repeat of the dotcom bubble burst could cause major panic in the markets.

Retirees with ETFs that include Magnificent 7 or other AI stocks Palantir (NASDAQ: PLTR) May want to diversify into other ETFs without AI exposure. The challenge is how to find such ETFs, as thousands hold at least one of the Fantastic 7 stocks and have for years.

Fortunately, there are many ETFs that focus on other sectors and boast their own examples of substantial, double-digit YTD gains. There are two worth considering in the biotech sector and mining: the State Street SPDR S&P Biotech ETF (NYSE: XBI) and iShares MSCI Global Silver & Metal Miners ETF (CBOE: SLVP).

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

The biotech industry, aligned with healthcare, has had a bumpy road since its pandemic-era heyday. The XBI, which tracks the S&P Biotechnology Select Industry component of the S&P Total Market Index, debuted on January 31, 2006. Thanks to new breakthroughs in treatments for various cancers, gene editing, cell therapies, obesity, and tissue engineering, biotechnology associated with greater precision is a strong personalized treatment, customized XBeat medicine (biotechnology). 2025. Compared to the overall S&P 500’s average year-to-date return of 16%, XBI boasts. 25.19% YTD return In early November. Below is an overview of XBI:

YTD profit

25.19%

52 weeks. Mkt range

$66.66-$127.47

net worth

$8.334 billion

Average daily amount

10.59 million shares

produce

0.06%

1 year returns

16.25%

expense ratio

0.35%

3 year returns

11.19%

NAV

$31.42

5 year returns

0.06%

Beta

1.26

10 year returns

5.52%

XBI’s top 10 stocks include many names that are not familiar to the average investor, but are big contributors to the sector’s gains.

Wall Street analysts have a consensus 12-month price projection target for XBI of $159.95, with a high of $223.38. However, its relatively high beta classifies it as a riskier-than-average ETF.

RHJPhtotos / Shutterstock.com

Thanks to the rise 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 the spot prices of gold and silver are hitting new record highs and there is no end in sight to the hoarding of physical precious metals by banks and institutions. Following London’s inventory shortage due to the influx of Indian Diwali season buyers, China’s Shanghai Gold Exchange is now experiencing similar low inventory exposure. As a result, the price of spot silver broke $57 per ounce. On November 28.

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 top mining companies whose stocks trade in the US, Canada and Mexico. Thanks to the rise in physical silver prices, SLVP has impressive YTD returns 171.97%. Its establishment date is January 31, 2012. Below is an overview of SLVP:

YTD profit

171.97%

52 weeks. Mkt range

$11.34-$32.44

net worth

$662.85 million

Average daily amount

508,020 shares

produce

0.46%

1 year returns

108.26%

expense ratio

0.39%

3 year returns

46.32%

NAV

$31.42

5 year returns

13.42%

Beta

1.19

10 year returns

18.22%

SLVP’s top holdings are the following companies:

  1. Hecla Mining (NYSE: HL) – 15.46%

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

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

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

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

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

  7. Precious metals of wheat (NYSE: WPM) – 4.17%

  8. Agni’s Eagle Mines (NYSE: AEM) – 4.13%

  9. Newmont Corporation (NYSE: No) – 3.99%

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

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

While SLVP and XBI aren’t earning better than the S&P 500 ETFs, their superior returns could more than compensate for any market declines that could potentially occur if the AI ​​bubble bursts.

The fact is that there are two completely different investment paths that you can take right now. And while you may earn some money, making the right choice at the right time can mean the difference between just getting by and being truly rich. Most people don’t understand the difference, and that mistake can be disastrous for your portfolio. Whether you’re investing $1,000 today, or $1,000,000, learn the difference and put yourself on the right path. See the report.

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