The First Trust NYSE Arca Biotechnology Index Fund has a lower expense ratio and significantly higher assets under management (AUM).
The First Trust NYSE Arca Biotechnology Index Fund outperformed the Invesco fund on a 1-year total return basis and over a five-year period.
Both ETFs maintain concentrated portfolios of roughly 30 holdings with 100% weighting in the healthcare sector.
The First Trust NYSE Arca Biotechnology Index Fund (NYSEMKT:FBT) provides a lower expense ratio and larger assets under management (AUM) compared to the Invesco Biotechnology & Genome ETF (NYSEMKT:PBE), which utilizes a multi-factor quantitative index.
Biotechnology remains a high-stakes cornerstone of healthcare innovation, driven by genetic breakthroughs and therapeutic research. However, the inherent volatility of the industry makes individual stock picking a challenge for many investors.
The Invesco Biotechnology & Genome ETF and the First Trust NYSE Arca Biotechnology Index Fund serve as primary vehicles for broad sector exposure, though they rely on very different index-tracking strategies to navigate the complex field of drug development and medical services.
| Metric | PBE | FBT |
|---|---|---|
| Issuer | Invesco | First Trust |
| Share price | $99.62 (as of 2026-11-10) | $271.59 (as of 2026-11-10) |
| Expense ratio | 0.59% | 0.55% |
| 1-yr return (as of Nov. 10, 2026) | 28.1% | 35.7% |
| Dividend yield | 1.3% | n/a |
| Beta | 0.76 | 0.73 |
| AUM | $438.0 million | $3.0 billion |
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.
Selecting between these two biotech funds often comes down to cost and liquidity. The First Trust fund is the more affordable option here with an expense ratio of 0.55%, whereas the Invesco fund carries a slightly higher 0.59% fee.
| Metric | PBE | FBT |
|---|---|---|
| Max drawdown (5 yr) | (37.8%) | (33.3%) |
| Growth of $1,000 over 5 years (total return) | $1,382 | $1,709 |
The First Trust fund is designed to accurately reflect the price movements of the NYSE Arca Biotechnology Index, a benchmark that targets companies involved in medical research and diagnostic testing. It maintains a streamlined portfolio of 30 positions and allocates 100% of its capital to the healthcare sector. Its largest positions include Genmab A/S (ADR) (NASDAQ:GMAB) at 4.76%, Regeneron Pharmaceuticals (NASDAQ:REGN) at 4.00%, and ADMA Biologics (NASDAQ:ADMA) at 3.99%. This fund was launched in 2006.
The Invesco fund follows the Dynamic Biotech & Genome Intellidex Index, a multi-factor benchmark that thoroughly evaluates companies based on investment criteria such as price momentum, earnings growth, and management decisions. This quantitative approach results in a portfolio of 31 holdings, with 100% weighting in the healthcare sector. Its largest positions include Gilead Sciences (NASDAQ:GILD) at 5.69%, Biogen (NASDAQ:BIIB) at 5.68%, and Royalty Pharma (NASDAQ:RPRX) at 5.54%. It undergoes quarterly rebalancing to maintain its strategic tilt. This fund was launched in 2005.
For more guidance on ETF investing, check out the full guide at this link.
Investors seeking exposure to the biotech industry can do so efficiently through a fund such as the Invesco Biotechnology & Genome ETF (PBE) or the First Trust NYSE Arca Biotechnology Index Fund (FBT). Both have different pros and cons, so which one to pick depends on the factors that matter most to you.
FBT has delivered stronger performance over time, given its greater one-year and five-year returns. It also sports a lower expense ratio, and a much larger AUM. The bigger AUM offers superior liquidity, which is reflected in its higher average trading volume of 70,500 compared to PBE's 18,400.
These strengths seem to point to FBT as the better ETF. However, PBE pays a dividend, while FBT does not. PBE may also be the preferred choice if you like its use of investment merit criteria to pick its holdings. The Invesco fund looks at metrics such as price and earnings momentum, management action, and value before deciding which companies to invest in. These factors are important considerations in the volatile world of biotechnology, where breakthroughs or setbacks can make or break a portfolio.
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Robert Izquierdo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Adma Biologics, Genmab A/s, Gilead Sciences, and Regeneron Pharmaceuticals. The Motley Fool recommends Biogen. The Motley Fool has a disclosure policy.