From The Motley Fool · Robert Izquierdo · · 1m
Better Biotech ETF: FBT vs PBE Comparison
First Trust's FBT outperforms Invesco's PBE with lower fees and larger assets.
In brief
First Trust's FBT outperforms Invesco's PBE with lower fees and larger assets. First Trust's FBT has lower expense ratio (0.55%) and higher assets under management ($3.0 billion) than Invesco's PBE (0.59%, $438.0 million). Originally reported by The Motley Fool.
Key Comparison
The First Trust NYSE Arca Biotechnology Index Fund has a lower expense ratio and significantly higher assets under management (AUM).
Performance History
FBT outperformed PBE on 1-year total return (35.7% vs 28.1%) and five-year returns (1,709 vs 1,382 for $1,000).
Portfolio Structure
Both ETFs hold 30-31 healthcare stocks with 100% sector weighting, but FBT uses a single index while PBE uses multi-factor analysis.
Expense Ratio
FBT charges 0.55% versus PBE's 0.59% expense ratio, making it the more affordable option for investors.
Liquidity Advantage
FBT has higher average trading volume (70,500) compared to PBE's 18,400, indicating better liquidity.
Dividend Difference
PBE pays a 1.3% dividend yield while FBT has no dividend distribution.
The headline
First Trust's FBT has lower expense ratio (0.55%) and higher assets under management ($3.0 billion) than Invesco's PBE (0.59%, $438.0 million).
