At a glance
FBT charges 0.55% a year, above the 0.49% average of the 8 funds most like it (the 6th cheapest of 9). It has $2.81B in assets, the 2nd largest of that group. Over the past year it returned +43.6% with distributions reinvested (S&P 500: +11.5%), 3rd of those 9 funds; over three years it returned +27.7% a year. At its worst it fell 26.6% in the 2020 crash (S&P 500: 33.7%) and 24.4% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 1 month and 7 months after the lows. Its ten largest positions make up 43.2% of the fund, out of 31 in all.
The short version
First Trust NYSE Arca Biotechnology Index Fund (FBT) is an exchange-traded fund that tracks the NYSE Arca Biotechnology Index. The index holds 30 biotech stocks and gives each one roughly equal weight. Unlike most biotech funds, its index picks companies mainly by their sales and research spending, not by giving the biggest companies the most weight. Its 0.55% expense ratio is above the 0.49% average of similar biotech funds.
Price history
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FBT +43.6% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| FBT official prospectus, to Dec 31, 2025 | — | +24.09% | — | +4.29% | +6.25% | +12.80% |
| FBT price data to Oct 27, 2026 | +32.5% | +43.6% | +27.7% | +11.4% | +12.2% | +13.9% |
- Over the year to Oct 27, 2026, FBT returned +43.6%, 3rd of 9 among similar funds.
- Its 5-year annualized return was +11.4% and its 10-year +12.2%.
- In the 2020 COVID crash it fell 26.6% and regained its old high 1.3 months after the low.
- Its worst full calendar year was 2016 (-19.6%); its best was 2013 (+50.5%).
- The deepest fall in its price history was 40.5% (Jul 17, 2015 to Feb 11, 2016), recovered by Jan 12, 2018.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +32.5% | — |
| 2025 | +24.3% | +24.09% |
| 2024 | +5.9% | +5.76% |
| 2023 | +2.5% | +2.26% |
| 2022 | -4.8% | -4.60% |
| 2021 | -2.3% | -3.64% |
| 2020 | +13.0% | +12.93% |
| 2019 | +19.7% | +19.78% |
| 2018 | -0.3% | -0.21% |
| 2017 | +37.1% | +36.99% |
| 2016 | -19.6% | -19.60% |
| 2015 | +10.9% | — |
| 2014 | +47.5% | — |
| 2013 | +50.5% | — |
| 2012 | +40.7% | — |
| 2011 | -16.5% | — |
| 2010 | +36.9% | — |
| 2009 | +45.0% | — |
| 2008 | -18.2% | — |
| 2007 | +3.1% | — |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 35.8% over that stretch · deepest drop along the way 39.8%, back to its old high 8.4 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 25.7% over that stretch · deepest drop along the way 26.6%, back to its old high 1.3 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 18% over that stretch · deepest drop along the way 24.4%, back to its old high 7.4 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2024 | $1.1700 | -47.1% |
| 2021 | $2.2100 | +1600.0% |
| 2015 | $0.1300 | +160.0% |
| 2014 | $0.0500 | -81.5% |
| 2008 | $0.2700 |
What's inside
As of Jun 30, 2026, the fund held 31 securities; the ten largest made up 43.2% of assets.
| Holding | Weight | |
|---|---|---|
| CORCEPT THERAPEUTICS INC | 5.60% | |
| NEOGENOMICS INC | 5.12% | |
| VERACYTE INC | 5.10% | |
| BRUKER CORP | 4.32% | |
| ALKERMES PLC | 4.24% | |
| ILLUMINA INC | 3.92% | |
| KRYSTAL BIOTECH INC | 3.87% | |
| NATERA INC | 3.79% | |
| AXSOME THERAPEUTICS INC | 3.71% | |
| NEUROCRINE BIOSCIENCES INC | 3.53% | |
| BIO-TECHNE CORP | 3.43% | |
| ARROWHEAD PHARMACEUTICALS INC | 3.38% | |
| BIOGEN INC | 3.37% | |
| EXELIXIS INC | 3.32% | |
| INCYTE CORP | 3.18% |
By country
United States 84.9%Ireland 4.24%Netherlands 3.13%Germany 2.63%Denmark 2.62%By asset type
Stocks 100.01%RA 0%What changed recently
- Over the three months to Jun 30, 2026, investors added a net $2.5M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +1.91%, +8.85%, +11.20%.
How it works
FBT normally puts at least 90% of its net assets into the stocks in the NYSE Arca Biotechnology Index. It tries to match the index's performance before fees. ICE Data Indices, LLC builds and maintains the index. To qualify, a stock must trade on a qualifying US exchange and meet size and trading-volume standards. Depositary receipts also count. These are US-traded shares of foreign companies. The company must also fall in ICE's biotechnology group, which covers two kinds of business: drug developers (therapeutics) and makers of lab tools and diagnostic tests.
Eligible companies are ranked on three measures. Half the score comes from revenue over the last 12 months. A quarter comes from revenue compared with research and development (R&D) spending. The last quarter comes from how much R&D spending grew over three years. Existing members stay as long as they rank in the top 36. This buffer cuts down on trading. The top-ranked newcomers then fill the index up to 30 names. No more than six can be tools and diagnostics companies.
Each stock gets equal weight when the index is rebalanced and reconstituted every quarter. Between those dates, weights drift with prices. As of June 30, 2026, Corcept Therapeutics made up 5.6% of the fund, and the top ten holdings made up 43.2%. Equal weighting means smaller companies count as much as Biogen. The quarterly changes push up trading: portfolio turnover was 37%, according to the prospectus. The fund held no derivatives as of June 30, 2026.
What it really costs
- FBT charges 0.55% a year, versus an average of 0.49% for the similar funds below (6th of 9, cheapest first).
- Of that, 0.4% is the management fee; the rest covers other fund expenses.
In a retirement portfolio
FBT owns just 30 stocks from one volatile industry and pays no income, so it fits better as a small add-on than as a foundation.
FBT gives focused exposure to biotech companies with real sales. But it can fall hard. It dropped 39.8% in the 2008 financial crisis, 26.6% in the 2020 COVID crash and 24.4% in the 2022 bear market. It recovered from those drops in 8.4, 1.3 and 7.4 months. Its deepest drop, 40.5% from July 2015 to February 2016, took 23 months to recover. Its worst calendar year was 2016, at −19.6%. A retiree who had to sell during a stretch like that would lock in losses. The fund paid no distributions in the year to October 27, 2026, so any cash drawn from it would come from selling shares. Its 0.55% expense ratio is also above the 0.49% peer average. Past results don't predict the future, and a retirement plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want biotech exposure picked mainly on revenue and R&D measures, with holdings such as Corcept, Neurocrine Biosciences, Biogen and Incyte.
- People who prefer equal weighting, so each of the 30 companies starts each quarter at a similar size and no single giant dominates.
- Long-term investors holding a small satellite slice who could sit through a drop like the 40.5% fall that took 23 months to recover.
Look elsewhere if
- Cost-focused investors: the 0.55% expense ratio is higher than IBB at 0.45%, BBH at 0.35% and IBBQ at 0.19%.
- Anyone who needs regular income: FBT paid no distributions in the year to October 27, 2026.
- Investors who want broad health care or market diversification: FBT holds only biotech, and its top ten made up 43.2% of assets as of June 30, 2026.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| FBT this fund | — | 0.55% | $2.81B | +43.6% | +27.7% |
| PBE Invesco Biotechnology & Genome ETF | 48% | 0.58% | $281.9M | +38.6% | +25.2% |
| BBH VanEck Biotech ETF | 41% | 0.35% | $395.6M | +41.0% | +20.9% |
| IBB iShares Biotechnology ETF | 40% | 0.45% | $9.09B | +35.3% | +23.9% |
| IBBQ Invesco Nasdaq Biotechnology ETF | 30% | 0.19% | $96.4M | +36.3% | +26.1% |
| FTXH First Trust Nasdaq Pharmaceuticals ETF | 29% | 0.6% | $36.2M | +46.9% | +23.4% |
| GNOM Global X Genomics & Biotechnology ETF | 29% | 0.5% | $91.9M | +56.6% | +25.8% |
| BBP Virtus LifeSci Biotech Products ETF | 27% | 0.79% | $98.5M | +40.3% | +32.3% |
Questions investors ask
Does FBT pay a dividend?
No. FBT paid no distributions in the year to October 27, 2026, so its yield was 0%. Many biotech companies put their cash back into research instead of paying dividends, and an index fund passes on only what its holdings pay out. Returns from FBT have come from changes in the share price, not income. Investors who need regular cash would have to sell shares to get it.
What's the difference between FBT and PBE?
Among similar funds, the Invesco Biotechnology & Genome ETF (PBE) has the most holdings in common with FBT, about 48%. FBT costs a little less, 0.55% a year against PBE's 0.58%. It is also much larger: $2.81 billion in net assets as of June 30, 2026, against PBE's $282 million as of July 31, 2026. As of October 27, 2026, FBT returned 43.6% over one year, against 38.6% for PBE. Over three years it returned 27.7% a year, against 25.2%.
What are FBT's top holdings?
As of June 30, 2026, the largest holdings were Corcept Therapeutics (5.6%), NeoGenomics (5.1%), Veracyte (5.1%), Bruker (4.3%), Alkermes (4.2%) and Illumina (3.9%). The top ten made up 43.2% of the fund. About 84.9% was in US companies. The rest was in companies based in Ireland, the Netherlands, Germany, Denmark and Switzerland. Holdings change every quarter when the index is rebalanced and reconstituted.
How has FBT performed over the long term?
The results have been strong over long periods but uneven. According to the prospectus, as of December 31, 2025, FBT returned 24.09% over one year, 4.29% a year over five years and 6.25% a year over ten years. Since its June 2006 launch, it returned 12.8% a year. Based on share prices as of October 27, 2026, it returned 11.4% a year over five years and 12.2% a year over ten. Single years have swung widely, from −19.6% in 2016 to 36.99% in 2017.
Is FBT good for retirement?
FBT may suit a small satellite role in a retirement portfolio rather than a core one. It holds 30 stocks from a single industry. Its price swung about 21.7% a year over the year to October 27, 2026, and it has fallen as much as 40.5% from a peak. It paid no income over that year. Its 0.55% expense ratio is above the 0.49% average of similar funds. Past results don't predict future returns.