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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’s rating suggests it is a solid but somewhat volatile biotechnology-focused ETF, with its quality driven largely by strong, profitable companies and tempered by a few more challenged names. High-quality holdings like Alkermes, Krystal Biotech, Neurocrine, and Veracyte support the fund with robust financial performance, strategic growth moves, and positive earnings sentiment, while weaker positions such as NeoGenomics, Bruker, and Axsome Therapeutics, which face profitability, cash flow, or valuation concerns, hold the rating back and highlight the risk of concentration in the biotech sector.
Positive Factors
Strong Recent Performance
The fund has shown strong gains so far this year and over the last few months, indicating solid recent momentum.
Healthy Size and Investor Interest
With several billion dollars in assets, the ETF appears well-established and supported by meaningful investor demand.
Multiple Strong-Performing Biotech Holdings
Several top positions, such as Veracyte, Corcept Therapeutics, Alkermes, and Axsome Therapeutics, have delivered strong year-to-date performance, helping drive the fund’s returns.
Negative Factors
High Sector Concentration in Health Care
Almost all of the ETF’s holdings are in the health care sector, which increases risk if biotechnology stocks face a downturn.
Limited Geographic Diversification
The fund is almost entirely invested in U.S. companies, offering little protection if the U.S. market or regulatory environment becomes less favorable for biotech.
Mixed Performance Among Top Holdings
A few key holdings, including Madrigal Pharmaceuticals and Regeneron, have shown weak year-to-date results, which can drag on overall fund performance.

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

FBT Summary

FBT is an exchange-traded fund that follows the NYSE Arca Biotechnology Index, focusing on U.S. biotech companies within the health care sector. It holds firms working on new drugs, genetic treatments, and advanced medical tests. Well-known names in the fund include Biogen and Regeneron, along with smaller, fast-growing biotech players. Someone might invest in FBT to tap into the potential growth of cutting-edge medical innovations while spreading their money across many biotech stocks instead of picking just one. A key risk is that biotech shares can be very volatile, so the fund’s value can rise and fall sharply with news, trials, and the overall market.
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-play U.S. biotech fund, and its story right now is all about specialized drug developers and tools companies setting the tone. Corcept Therapeutics and Alkermes have been rising sharply, acting like twin engines for performance, while Illumina’s steady rebound adds a solid backbone from the genomics side. Amgen and Argenx provide more mature, diversified exposure, helping smooth out the ride. On the flip side, Biogen and Axsome are lagging, occasionally dragging on returns, but the overall positioning remains firmly concentrated in innovative health care and biotech names.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
BeOne Medicines3.66%$102.86M$37.97B11.81%
61
Neutral
Halozyme3.61%$101.36M$9.72B40.68%
73
Outperform
Argenx Se3.51%$98.64M$57.44B55.11%
79
Outperform
Corcept Therapeutics3.48%$97.84M$10.24B39.64%
76
Outperform
Amgen3.47%$97.56M$202.95B22.66%
77
Outperform
Axsome Therapeutics3.46%$97.18M$12.40B139.02%
57
Neutral
Illumina3.42%$96.20M$29.37B77.58%
71
Outperform
Alkermes3.41%$96.00M$8.82B102.41%
80
Outperform
Biogen3.40%$95.71M$29.85B53.73%
74
Outperform
Madrigal Pharmaceuticals3.40%$95.65M$12.55B82.48%
56
Neutral

FBT Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
232.45
Positive
100DMA
217.23
Positive
200DMA
211.30
Positive
Market Momentum
MACD
RSI
STOCH
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 249.62, equal to the 50-day MA of 232.45, and equal to the 200-day MA of 211.30, indicating a neutral trend. The MACD of ― indicates undefined momentum. The RSI at ― is undefined, neither overbought nor oversold. The STOCH value of ― is undefined, 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
$2.82B0.55%
71
Outperform
$9.38B0.44%
65
Neutral
$3.35B0.38%
73
Outperform
$3.27B0.08%
71
Outperform
$2.94B0.38%
74
Outperform
$1.57B0.38%
69
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FBT
First Trust NYSE Arca Biotechnology Index Fund
246.74
80.62
48.53%
IBB
iShares Biotechnology ETF
IYH
iShares U.S. Healthcare ETF
FHLC
Fidelity MSCI Health Care Index ETF
IHI
iShares U.S. Medical Devices ETF
IHE
iShares U.S. Pharmaceuticals 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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