FBT Biotech ETF Tops Category Returns, Outpaces IBB
FBT biotech ETF is up 20.35% YTD and 53.20% over one year, beating category averages and IBB. Its concentrated equal-weight 30-stock portfolio carries a 0.55% expense ratio and $2.9B AUM.
First Trust NYSE Arca Biotechnology Index Fund (FBT) has returned 20.35% year to date, compared with the category average of -2.39%, and is up 11.20% over the last month versus +1.70% for the category. The fund is up 23.35% over three months, against the category's -3.03%, and posted a one-year total return of 53.20% as of July 9, 2026.
FBT offered a share price of $256.01 as of July 9, 2026, versus $197.34 for the iShares Biotechnology ETF (IBB). FBT carries an expense ratio of 0.55% and $2.9 billion in assets under management, while IBB charges 0.44% and holds $9.6 billion. FBT's dividend yield is 0.46% and beta is 0.65; IBB's dividend yield is 0.20% and beta is 0.70. Over five years, a $1,000 investment in FBT grew to $1,490, compared with $1,226 for IBB, and FBT's maximum drawdown was (29.90%) versus (39.80%) for IBB.
Both funds target the volatile U.S. biotechnology sector, but differ significantly in construction. FBT uses an equal-weighted approach with a concentrated portfolio of 30 positions, with the healthcare sector accounting for 100% of its portfolio and no stock representing more than 6% of overall holdings; the fund is mostly invested in mid-cap and small-cap stocks. IBB is significantly larger and offers much broader diversification through a market-cap-weighted approach. FBT's largest positions include Corcept Therapeutics, NeoGenomics, and Veracyte, while IBB's largest positions include Vertex Pharmaceuticals, Amgen, and Gilead Sciences. FBT was launched in 2006, and IBB was launched in 2001.
FBT provides exposure to a portfolio of biotechnology companies spanning drug development, therapeutics, diagnostics, genomics and related life-science businesses. Over the last ten years, FBT has generated a total return of 168% with a CAGR of 10.4%, while the S&P 500 generated a total return of 316% with a CAGR of 15.3% over the same period. The fund may be particularly well-suited to investors who have a long-term investment horizon and a higher tolerance for volatility, and it is not designed for investors seeking low volatility, broad market diversification or dependable income.