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Should You Invest in the First Trust NYSE Arca Biotechnology ETF (FBT)?
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Looking for broad exposure to the Healthcare - Biotech segment of the equity market? You should consider the First Trust NYSE Arca Biotechnology ETF (FBT - Free Report) , a passively managed exchange traded fund launched on June 19, 2006.
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Healthcare - Biotech is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 4, placing it in top 25%.
Index Details
The fund is sponsored by First Trust Advisors. It has amassed assets over $1.14 billion, making it one of the larger ETFs attempting to match the performance of the Healthcare - Biotech segment of the equity market. FBT seeks to match the performance of the NYSE Arca Biotechnology Index before fees and expenses.
The NYSE Arca Biotechnology Index is an equal dollar weighted index designed to measure the performance of a cross section of companies in the biotechnology industry that are primarily involved in the use of biological processes to develop products or provide services.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.54%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.62%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Healthcare sector -- about 100% of the portfolio.
Looking at individual holdings, Genmab A/s (adr) (GMAB) accounts for about 4.57% of total assets, followed by Alnylam Pharmaceuticals, Inc. (ALNY) and United Therapeutics Corporation (UTHR).
The top 10 holdings account for about 40.23% of total assets under management.
Performance and Risk
The ETF has added about 13.01% and it's up approximately 10.53% so far this year and in the past one year (as of 10/23/2025), respectively. FBT has traded between $145.666 and $189.624 during this last 52-week period.
The ETF has a beta of 0.65 and standard deviation of 19.54% for the trailing three-year period, making it a high risk choice in the space. With about 31 holdings, it has more concentrated exposure than peers.
Alternatives
First Trust NYSE Arca Biotechnology ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, FBT is a good option for those seeking exposure to the Health Care ETFs area of the market. Investors might also want to consider some other ETF options in the space.
iShares Biotechnology ETF (IBB) tracks Nasdaq Biotechnology Index and the SPDR S&P Biotech ETF (XBI) tracks S&P Biotechnology Select Industry Index. iShares Biotechnology ETF has $6.57 billion in assets, SPDR S&P Biotech ETF has $6.71 billion. IBB has an expense ratio of 0.44%, and XBI charges 0.35%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Should You Invest in the First Trust NYSE Arca Biotechnology ETF (FBT)?
Looking for broad exposure to the Healthcare - Biotech segment of the equity market? You should consider the First Trust NYSE Arca Biotechnology ETF (FBT - Free Report) , a passively managed exchange traded fund launched on June 19, 2006.
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Healthcare - Biotech is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 4, placing it in top 25%.
Index Details
The fund is sponsored by First Trust Advisors. It has amassed assets over $1.14 billion, making it one of the larger ETFs attempting to match the performance of the Healthcare - Biotech segment of the equity market. FBT seeks to match the performance of the NYSE Arca Biotechnology Index before fees and expenses.
The NYSE Arca Biotechnology Index is an equal dollar weighted index designed to measure the performance of a cross section of companies in the biotechnology industry that are primarily involved in the use of biological processes to develop products or provide services.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.54%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.62%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Healthcare sector -- about 100% of the portfolio.
Looking at individual holdings, Genmab A/s (adr) (GMAB) accounts for about 4.57% of total assets, followed by Alnylam Pharmaceuticals, Inc. (ALNY) and United Therapeutics Corporation (UTHR).The top 10 holdings account for about 40.23% of total assets under management.
Performance and Risk
The ETF has added about 13.01% and it's up approximately 10.53% so far this year and in the past one year (as of 10/23/2025), respectively. FBT has traded between $145.666 and $189.624 during this last 52-week period.
The ETF has a beta of 0.65 and standard deviation of 19.54% for the trailing three-year period, making it a high risk choice in the space. With about 31 holdings, it has more concentrated exposure than peers.
Alternatives
First Trust NYSE Arca Biotechnology ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, FBT is a good option for those seeking exposure to the Health Care ETFs area of the market. Investors might also want to consider some other ETF options in the space.
iShares Biotechnology ETF (IBB) tracks Nasdaq Biotechnology Index and the SPDR S&P Biotech ETF (XBI) tracks S&P Biotechnology Select Industry Index. iShares Biotechnology ETF has $6.57 billion in assets, SPDR S&P Biotech ETF has $6.71 billion. IBB has an expense ratio of 0.44%, and XBI charges 0.35%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.