FBT vs. FIW

Last updated Jul 14, 2026

FBT (First Trust Amex Biotechnology Index) and FIW (First Trust Water ETF) are both exchange-traded funds - FBT is a Health & Biotech Equities fund tracking the NYSE Arca Biotechnology Index, while FIW is a Water Equities fund tracking the ISE Clean Edge Water Index. Both are passively managed. Over the past 10 years, FBT returned 10.43%/yr vs 12.18%/yr for FIW. A 0.59 correlation means they provide meaningful diversification when combined. FBT charges 0.57%/yr vs 0.50%/yr for FIW.

Performance

FBT vs. FIW - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Amex Biotechnology Index (FBT) and First Trust Water ETF (FIW). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FBT achieves a 19.86% return, which is significantly higher than FIW's -0.70% return. Over the past 10 years, FBT has underperformed FIW with an annualized return of 10.43%, while FIW has yielded a comparatively higher 12.18% annualized return.

FBT

• 1D: -0.82%
• 1M: 9.72%
• 6M: 16.13%
• YTD: 19.86%
• 1Y: 48.60%
• 3Y*: 17.08%
• 5Y*: 8.62%
• 10Y*: 10.43%

FIW

• 1D: -0.41%
• 1M: 2.07%
• 6M: -5.26%
• YTD: -0.70%
• 1Y: -1.44%
• 3Y*: 7.15%
• 5Y*: 5.72%
• 10Y*: 12.18%

*Multi-year figures are annualized to reflect compound growth (CAGR)

FBT vs. FIW - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FBT First Trust Amex Biotechnology Index	19.86%	24.25%	5.88%	2.55%	-4.83%	-2.26%	12.96%	19.74%	-0.30%	37.07%
FIW First Trust Water ETF	-0.70%	7.20%	8.38%	20.35%	-15.70%	32.00%	21.15%	37.37%	-9.23%	24.69%

Correlation

The correlation between FBT and FIW is 0.54, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.54
Correlation (3Y) Calculated over the trailing 3-year period	0.59
Correlation (5Y) Calculated over the trailing 5-year period	0.62
Correlation (10Y) Calculated over the trailing 10-year period	0.56
Correlation (All Time) Calculated using the full available price history since May 11, 2007	0.59

The correlation between FBT and FIW has been stable across timeframes, ranging from 0.54 to 0.62 - a consistent structural relationship.

FBT vs. FIW - Sectors Allocation Comparison

Sectors	FBT	FIW
Healthcare	100.0%	7.9%
Basic Materials	-	5.3%
Communication Services	-	-
Consumer Cyclical	-	2.6%
Consumer Defensive	-	2.6%
Energy	-	-
Financial Services	-	-
Industrials	-	52.6%
Real Estate	-	-
Technology	-	7.9%
Utilities	-	15.8%

Return for Risk

FBT vs. FIW — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

FBT

FBT Risk / Return Rank: 82
FBT Sharpe Ratio Rank: 88
FBT Sortino Ratio Rank: 88
FBT Omega Ratio Rank: 83
FBT Calmar Ratio Rank: 82
FBT Martin Ratio Rank: 71

FIW

FIW Risk / Return Rank: 8
FIW Sharpe Ratio Rank: 8
FIW Sortino Ratio Rank: 8
FIW Omega Ratio Rank: 8
FIW Calmar Ratio Rank: 8
FIW Martin Ratio Rank: 8

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

FBT vs. FIW - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Amex Biotechnology Index (FBT) and First Trust Water ETF (FIW). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	FBT	FIW	Difference
Sharpe ratio: Return per unit of total volatility	2.28	-0.09	+2.37
Sortino ratio: Return per unit of downside risk	3.23	-0.02	+3.24
Omega ratio: Gain probability vs. loss probability	1.39	1.00	+0.39
Calmar ratio: Return relative to maximum drawdown	3.43	-0.11	+3.53
Martin ratio: Return relative to average drawdown	10.23	-0.25	+10.48

FBT vs. FIW - Sharpe Ratio Comparison

The current FBT Sharpe Ratio is 2.28, which is higher than the FIW Sharpe Ratio of -0.09. The chart below compares the historical Sharpe Ratios of FBT and FIW, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

FBT vs. FIW - Drawdown Comparison

The maximum FBT drawdown since its inception was -40.51%, smaller than the maximum FIW drawdown of -52.75%. Use the drawdown chart below to compare losses from any high point for FBT and FIW.

Drawdown Indicators

	FBT	FIW	Difference
Max Drawdown Largest peak-to-trough decline	-40.51%	-52.75%	+12.24%
Max Drawdown (1Y) Largest decline over 1 year	-14.26%	-13.81%	-0.45%
Max Drawdown (3Y) Largest decline over 3 years	-20.05%	-18.32%	-1.73%
Max Drawdown (5Y) Largest decline over 5 years	-28.98%	-28.53%	-0.45%
Max Drawdown (10Y) Largest decline over 10 years	-32.37%	-36.60%	+4.23%
Current Drawdown Current decline from peak	-3.38%	-6.87%	+3.49%
Average Drawdown Average peak-to-trough decline	-11.11%	-8.29%	-2.82%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.77%	5.86%	-1.09%

Volatility

FBT vs. FIW - Volatility Comparison

First Trust Amex Biotechnology Index (FBT) has a higher volatility of 5.84% compared to First Trust Water ETF (FIW) at 5.00%. This indicates that FBT's price experiences larger fluctuations and is considered to be riskier than FIW based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FBT	FIW	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.84%	5.00%	+0.84%
Volatility (6M) Calculated over the trailing 6-month period	15.90%	12.22%	+3.68%
Volatility (1Y) Calculated over the trailing 1-year period	21.43%	16.05%	+5.38%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.99%	18.44%	+3.55%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.78%	19.88%	+3.90%

FBT vs. FIW - Expense Ratio Comparison

FBT has a 0.57% expense ratio, which is higher than FIW's 0.50% expense ratio.

Dividends

FBT vs. FIW - Dividend Comparison

FBT has not paid dividends to shareholders, while FIW's dividend yield for the trailing twelve months is around 0.72%.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FBT First Trust Amex Biotechnology Index	0.00%	0.00%	0.71%	0.00%	0.00%	1.37%	0.00%	0.00%	0.00%	0.00%	0.00%	0.12%
FIW First Trust Water ETF	0.72%	0.69%	0.69%	0.68%	0.67%	0.37%	0.56%	0.55%	0.73%	1.13%	0.51%	0.76%

Frequently Asked Questions

Can I hold both FBT and FIW in my portfolio?

FBT and FIW have a correlation of 0.54, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FBT or FIW?

FBT has higher volatility (5.84%) compared to FIW (5.00%). In terms of maximum drawdown, FBT dropped -40.51% vs FIW's -52.75%.

Which ETF is better, FBT or FIW?

On 10-year performance, FIW leads with 12.18% vs 10.43% for FBT. On fees, FIW is cheaper at 0.50% per year. On volatility, FIW has been the lower-risk option at 5.00%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FBT or FIW?

Over the 10-year period, FIW has performed better with a 12.18% return vs 10.43%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FBT or FIW?

FIW is cheaper with a 0.50% expense ratio, compared with 0.57% for FBT.

Which ETF pays a higher dividend yield, FBT or FIW?

FIW has the higher dividend yield at 0.72%, compared with 0.00% for FBT.

What is the main difference between FBT and FIW?

FBT is categorized as Health & Biotech Equities, while FIW is Water Equities. FBT tracks NYSE Arca Biotechnology Index, while FIW tracks ISE Clean Edge Water Index. Their fees differ too: 0.57% for FBT and 0.50% for FIW.

Which has better risk-adjusted returns?

FBT currently has the higher Sharpe Ratio (2.28 vs -0.09), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.