Better Biotechnology ETF: First Trust FBT vs. VanEck BBH
Key PointsThe First Trust NYSE Arca Biotechnology Index Fund has outperformed the VanEck Biotech ETF on a one-year basis and over the last five years.
The First Trust NYSE Arca Biotechnology Index Fund and the VanEck Biotech ETF are two exchange-traded funds that provide access to the biotechnology industry. According to Nasdaq Markets, the First Trust fund has outperformed the VanEck fund over the past year and five years.
The First Trust fund has $2.9 billion in assets under management, making it significantly larger than the VanEck fund, as reported by Motley Fool. The First Trust fund offers broader exposure and has higher recent returns, while the VanEck fund provides a lower-cost, highly concentrated portfolio of industry giants.
Both funds provide diversified access to companies that may be too risky to own individually. Motley Fool notes that biotechnology is a high-stakes corner of the healthcare market, characterized by immense research costs and binary regulatory outcomes.
Brief written by urgent.news from Nasdaq Markets, Motley Fool — 2 reports on this story. Machine-written — may contain errors; check the original before relying on it.
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