Is First Trust NYSE Arca Biotechnology ETF (FBT) a Strong ETF Right Now?

Core Insights - The First Trust NYSE Arca Biotechnology ETF (FBT) debuted on June 19, 2006, and offers broad exposure to the Health Care ETFs category [1] Fund Overview - FBT is sponsored by First Trust Advisors and has accumulated over $1.15 billion in assets, positioning it as one of the larger ETFs in the Health Care sector [5] - The ETF aims to match the performance of the NYSE Arca Biotechnology Index, which is an equal dollar weighted index focused on biotechnology companies [6] Cost Structure - The annual operating expenses for FBT are 0.54%, which is competitive within its peer group, and it has a 12-month trailing dividend yield of 0.62% [7] Sector Exposure and Holdings - FBT is fully allocated to the Healthcare sector, with Genmab A/s (adr) (GMAB) making up approximately 4.57% of total assets, followed by Alnylam Pharmaceuticals, Inc. (ALNY) and United Therapeutics Corporation (UTHR) [8][9] - The top 10 holdings constitute about 40.23% of the total assets under management [9] Performance Metrics - As of October 28, 2025, FBT has increased by approximately 14.7% year-to-date and 14.36% over the past year, with a trading range between $145.67 and $190.64 in the last 52 weeks [11] - The ETF has a beta of 0.65 and a standard deviation of 19.46% over the trailing three-year period, indicating a higher risk profile compared to peers [11] Alternatives - Other ETFs in the biotechnology space include iShares Biotechnology ETF (IBB) and SPDR S&P Biotech ETF (XBI), which have larger asset bases of $6.55 billion and $6.85 billion respectively, and lower expense ratios of 0.44% and 0.35% [13]