What Is FBT? First Trust NYSE Arca Biotechnology Index Fund

FBT is the First Trust NYSE Arca Biotechnology Index Fund, an ETF that tracks the NYSE Arca Biotechnology Index. The index is an equal-dollar-weighted benchmark designed to measure the performance of about 30 leading US biotechnology companies, and FBT holds those names at roughly equal weights.

Launched in June 2006, FBT is one of the longest-running biotech ETFs. Its equal-weight approach is its defining feature: rather than letting a few mega-cap biotechs dominate, it gives each holding similar influence, which appeals to investors who want balanced exposure to the sector's established players.

Approximate weights as of mid-2026; refresh quarterly from First Trust Advisors's fund page. Each ticker links to its individual stock guide in Walnut.

FBT holds about 30 US biotechnology companies, each sitting near 3% to 4% of the fund thanks to periodic equal-weight rebalancing. Recent top positions include Moderna, Gilead Sciences, Alkermes, Amgen, Halozyme Therapeutics, Vertex Pharmaceuticals, Regeneron, Biogen, Incyte, and Exelixis.

The roster skews toward profitable, commercial-stage biotechs rather than early clinical-stage startups, which gives FBT a somewhat steadier profile than broad small-cap biotech funds. Even so, the holdings are all exposed to drug-pipeline outcomes, FDA decisions, and patent cycles, so individual names can still swing hard on news.

IBB is market-cap-weighted, so it leans heavily on the largest biotechs and moves with a handful of mega-caps. XBI is equal-weighted across a much broader universe that includes many small and early-stage names, making it more volatile. FBT sits between them: equal-weighted like XBI, but concentrated in roughly 30 established companies.

That positioning gives FBT more balance than IBB without the deep small-cap risk of XBI. The trade-off is cost. FBT's 0.55% expense ratio is higher than both, reflecting the maintenance of a narrower equal-weighted index. Investors choose among the three based on how much small-cap exposure and concentration they want.

Biotech is a cyclical, sentiment-driven sector, and FBT's returns reflect that. It has rallied during periods of strong drug innovation, deal-making, and risk appetite, and pulled back sharply when rates rose or clinical setbacks hit major holdings. Its equal-weight design can help it outperform cap-weighted peers when smaller biotechs lead.

The outlook depends on drug-pipeline momentum, mergers and acquisitions activity, and the interest-rate environment, since biotech valuations are sensitive to the cost of capital. Themes like GLP-1 obesity drugs, gene therapy, and oncology continue to draw attention, and FBT's established holdings give exposure to several of them.

FBT suits investors who want concentrated, equal-weighted exposure to established biotech and accept the sector's volatility. It works best as a thematic satellite alongside a diversified core, sized so a rough patch in biotech does not dominate the portfolio. Its narrow, single-sector focus makes it unsuitable as a standalone holding.

Walnut is not an investment adviser. We describe what FBT holds, how its equal-weight structure works, and how it compares with IBB and XBI so you can decide whether it fits your goals and risk tolerance. Whether to buy, hold, or avoid it is your decision, ideally made with a licensed professional if you want advice.

FBT trades on the NYSE Arca exchange and is available through Robinhood, Fidelity, Schwab, Public, and most brokerages like any ETF. Brokers that support fractional shares let you invest a set dollar amount rather than buying whole shares.

You can also connect your broker to Walnut to track FBT within a healthcare or innovation-themed basket, watch how its weight shifts over time, and see your biotech exposure in the context of your broader portfolio.

FBT offers concentrated, equal-weighted exposure to about 30 established biotech names, giving mid-caps more voice than cap-weighted rivals. At 0.55% it is pricier than IBB or XBI, and biotech is volatile. Best used as a thematic satellite for healthcare-innovation exposure.

Whether FBT is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, concentration, and what would have to be true for it to outperform from here in is FBT a buy?

FBT yields ~0.1% as of mid-2026, paid by passing through the dividends of its underlying holdings. For the payout schedule, history, and how the distributions are taxed, see FBT dividend: yield and schedule.