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FBT - ETF AI Analysis

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FBT

First Trust NYSE Arca Biotechnology Index Fund (FBT)

Rating:71Outperform
Price Target:
FBT, the First Trust NYSE Arca Biotechnology Index Fund, earns a solid overall rating largely because several of its key biotech holdings—such as Alkermes, Neurocrine, Gilead, United Therapeutics, Amgen, and Exelixis—show strong financial performance, promising drug pipelines, and generally positive outlooks from recent earnings updates. Some holdings like Moderna and Axsome Therapeutics face challenges such as declining revenues, ongoing losses, or high leverage, which weigh on the fund’s rating. The main risk factor is the fund’s concentration in the biotechnology sector, where regulatory setbacks, patent issues, and competitive pressures can quickly impact stock prices.
Positive Factors
Strong Biotech Leaders in Top Holdings
Several of the largest positions, including Moderna and other key biotech names, have shown strong year-to-date gains, helping support the fund’s overall results.
Solid Recent Performance Momentum
The ETF has delivered strong performance over the last three months, indicating positive recent momentum in its holdings.
Meaningful Fund Size
With over a billion dollars in assets, the fund is large enough to offer good liquidity and stability for everyday investors.
Negative Factors
High Sector Concentration in Health Care
Almost all of the ETF’s assets are in the health care sector, so its performance is heavily tied to the fortunes of biotech and related companies.
Limited Geographic Diversification
The fund is almost entirely invested in U.S. companies, offering little protection if the U.S. market or regulatory environment for biotech weakens.
Above-Average Expense Ratio
The ETF’s fee is on the higher side for a passive index fund, which can slightly reduce long-term returns compared with lower-cost alternatives.

FBT vs. SPDR S&P 500 ETF (SPY)

FBT Summary

FBT is an ETF that follows the NYSE Arca Biotechnology Index, focusing on U.S. biotech companies developing new drugs, genetic treatments, and medical technologies. It holds well-known names like Moderna and Amgen, along with many smaller, innovative firms. Someone might invest in FBT if they want targeted exposure to the potential growth of cutting-edge health care and to diversify within the health sector. However, biotech stocks can be very volatile, and FBT’s value can swing sharply based on drug trial results, regulation changes, and overall market conditions.
How much will it cost me?The expense ratio for the First Trust NYSE Arca Biotechnology Index Fund (FBT) is 0.54%, which means you’ll pay $5.40 per year for every $1,000 invested. This is higher than average because the fund is actively managed, focusing on a niche sector like biotechnology that requires specialized research and expertise.
What would affect this ETF?The First Trust NYSE Arca Biotechnology Index Fund (FBT) could benefit from advancements in biotechnology and increased demand for innovative medical solutions, especially as the U.S. health care sector continues to grow. However, it may face challenges from regulatory changes, high research costs, or broader economic downturns that could impact funding and investor sentiment in the biotech industry.

FBT Top 10 Holdings

FBT is a pure U.S. biotech play, and its story right now is all about a handful of drug developers setting the tone. Moderna has been a key engine, with the stock rising on renewed optimism despite nagging revenue worries. United Therapeutics is also pulling its weight, climbing steadily on solid results. On the flip side, Gilead and Amgen look more mixed, offering stability but not much spark. Neurocrine has been lagging lately, acting as a bit of a brake on performance in this highly concentrated health care lineup.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Moderna5.42%$116.53M$19.26B90.21%
59
Neutral
Gilead Sciences4.16%$89.41M$173.96B32.80%
78
Outperform
United Therapeutics4.06%$87.23M$24.53B91.84%
79
Outperform
Amgen4.01%$86.24M$184.67B18.25%
77
Outperform
Axsome Therapeutics3.79%$81.60M$8.68B72.32%
57
Neutral
Corcept Therapeutics3.76%$80.86M$4.35B-45.28%
76
Outperform
Alkermes3.72%$79.91M$5.68B15.56%
80
Outperform
Biogen3.67%$79.02M$25.29B44.59%
74
Outperform
Neurocrine3.54%$76.21M$13.30B42.07%
80
Outperform
Exelixis3.54%$76.05M$11.42B26.23%
78
Outperform

FBT Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
204.51
Negative
100DMA
207.22
Negative
200DMA
190.98
Positive
Market Momentum
MACD
-1.08
Negative
RSI
52.70
Neutral
STOCH
81.76
Negative
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FBT, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 196.06, equal to the 50-day MA of 204.51, and equal to the 200-day MA of 190.98, indicating a neutral trend. The MACD of -1.08 indicates Negative momentum. The RSI at 52.70 is Neutral, neither overbought nor oversold. The STOCH value of 81.76 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FBT.

FBT Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$2.29B0.54%
71
Outperform
$8.46B0.35%
57
Neutral
$8.23B0.44%
66
Neutral
$3.22B0.38%
74
Outperform
$2.91B0.38%
73
Outperform
$2.82B0.08%
72
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FBT
First Trust NYSE Arca Biotechnology Index Fund
200.97
55.30
37.96%
XBI
SPDR S&P BIOTECH ETF
IBB
iShares Biotechnology ETF
IHI
iShares U.S. Medical Devices ETF
IYH
iShares U.S. Healthcare ETF
FHLC
Fidelity MSCI Health Care Index ETF
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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