Better Biotechnology ETF: First Trust FBT vs. VanEck BBH
VanEck's lower 0.35% expense ratio appeals to cost-conscious investors, while First Trust's $2.9 billion in assets and equal-weighted approach offer broader diversification across 30 biotech holdings.
Overview
The First Trust NYSE Arca Biotechnology Index Fund (NYSEMKT:FBT) offers broader exposure and higher recent returns, while the VanEck Biotech ETF (NASDAQ:BBH) provides a lower-cost, highly concentrated portfolio of industry giants.
Biotechnology is a high-stakes corner of the healthcare market, characterized by immense research costs and binary regulatory outcomes. With $2.9 billion in assets under management (AUM), the First Trust fund is significantly larger than the VanEck fund. Both ETFs provide diversified access to companies that may be too risky to own individually.
Details
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-year return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Source
Originally published at www.fool.com.