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.
In a comparison of the First Trust NYSE Arca Biotechnology Index Fund (FBT) and the VanEck Biotech ETF (BBH), Motley Fool highlights the differences in their approach to biotechnology investing. FBT is larger in size, with $2.9 billion in assets under management, offering broader exposure to the biotechnology sector with higher recent returns.
On the other hand, BBH provides a more concentrated portfolio of industry giants at a lower cost. Both ETFs aim to provide diversified access to potentially high-risk, high-reward biotech companies, with beta values indicating their price volatility relative to the S&P 500. The 1-year return figures indicate the total return over the trailing 12 months, while the dividend yield offers insight into the income generated by each fund.
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