Should You Invest in the First Trust NYSE Arca Biotechnology ETF (FBT)?

Core Viewpoint - The First Trust NYSE Arca Biotechnology ETF (FBT) provides broad exposure to the Healthcare - Biotech segment, appealing to both institutional and retail investors due to its low cost and transparency [1][2]. Group 1: ETF Overview - FBT is a passively managed ETF launched on June 19, 2006, with assets exceeding $1.08 billion, making it one of the larger ETFs in the Healthcare - Biotech sector [1][3]. - The ETF aims to match the performance of the NYSE Arca Biotechnology Index, which is an equal dollar weighted index measuring the performance of biotechnology companies [3][4]. Group 2: Costs and Performance - The annual operating expense ratio for FBT is 0.54%, which is competitive within its peer group, and it has a 12-month trailing dividend yield of 0.67% [5]. - As of August 18, 2025, FBT has increased by approximately 4.88% year-to-date and 4.32% over the past year, with a trading range between $145.666 and $182.19 in the last 52 weeks [8]. Group 3: Sector Exposure and Holdings - FBT has a 100% allocation in the Healthcare sector, with Acadia Pharmaceuticals Inc. (ACAD) representing about 4.41% of total assets, and the top 10 holdings accounting for approximately 39.27% of total assets [6][7]. Group 4: Alternatives and Market Position - FBT carries a Zacks ETF Rank of 3 (Hold), indicating it is a reasonable option for investors seeking exposure to the Healthcare ETFs market [9]. - Other alternatives in the space include SPDR S&P Biotech ETF (XBI) and iShares Biotechnology ETF (IBB), with assets of $5.09 billion and $5.63 billion respectively, and lower expense ratios of 0.35% and 0.45% [10].