FBT vs. IBB

Last updated Aug 2, 2026

FBT (First Trust Amex Biotechnology Index) and IBB (iShares Nasdaq Biotechnology ETF) are both Health & Biotech Equities funds - FBT tracks the NYSE Arca Biotechnology Index while IBB tracks the NASDAQ Biotechnology Index. Both are passively managed. Over the past 10 years, FBT returned 9.39%/yr vs 6.89%/yr for IBB. Their correlation of 0.92 means they have usually moved in the same direction. FBT charges 0.57%/yr vs 0.47%/yr for IBB.

Performance

FBT vs. IBB - Performance Comparison

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

Returns By Period

In the year-to-date period, FBT achieves a 18.66% return, which is significantly higher than IBB's 10.55% return. Over the past 10 years, FBT has outperformed IBB with an annualized return of 9.39%, while IBB has yielded a comparatively lower 6.89% annualized return.

FBT

• 1D: -3.01%
• 1M: -4.04%
• 6M: 15.09%
• YTD: 18.66%
• 1Y: 49.10%
• 3Y*: 17.01%
• 5Y*: 8.29%
• 10Y*: 9.39%
• ALL TIME*: 13.46%

IBB

• 1D: -1.87%
• 1M: -4.75%
• 6M: 8.20%
• YTD: 10.55%
• 1Y: 40.47%
• 3Y*: 13.65%
• 5Y*: 2.65%
• 10Y*: 6.89%
• ALL TIME*: 7.16%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
FBT First Trust Amex Biotechnology Index	$41.36M	$24.77M	$18.75M
IBB iShares Nasdaq Biotechnology ETF	$252.83M	$308.82M	$278.87M

FBT vs. IBB - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FBT First Trust Amex Biotechnology Index	18.66%	24.25%	5.88%	2.55%	-4.83%	-2.26%	12.96%	19.74%	-0.30%	37.07%
IBB iShares Nasdaq Biotechnology ETF	10.55%	27.98%	-2.41%	3.76%	-13.69%	0.95%	26.01%	25.42%	-9.53%	21.08%

Correlation

The correlation between FBT and IBB is 0.91, meaning they have usually moved in the same direction, including during past declines.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.91
Correlation (3Y) Balances recent behavior with more history.	0.92
Correlation (5Y) Shows whether the relationship held over a longer period.	0.93
Correlation (10Y) Provides a long-term view across more market conditions.	0.93
Correlation (All Time) Calculated using the full available price history since Jun 23, 2006	0.92

The correlation between FBT and IBB has been stable across timeframes, ranging from 0.91 to 0.93 - a consistent structural relationship.

FBT vs. IBB - Sectors Allocation Comparison

Sectors	FBT	IBB
Healthcare	100.0%	100.0%
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	-
Industrials	-	-
Real Estate	-	-
Technology	-	-
Utilities	-	-

Return for Risk

FBT vs. IBB — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

FBT

FBT Risk / Return Rank: 87
FBT Sharpe Ratio Rank: 91
FBT Sortino Ratio Rank: 91
FBT Omega Ratio Rank: 88
FBT Calmar Ratio Rank: 87
FBT Martin Ratio Rank: 79

IBB

IBB Risk / Return Rank: 86
IBB Sharpe Ratio Rank: 86
IBB Sortino Ratio Rank: 85
IBB Omega Ratio Rank: 79
IBB Calmar Ratio Rank: 92
IBB Martin Ratio Rank: 86

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

FBT vs. IBB - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Amex Biotechnology Index (FBT) and iShares Nasdaq Biotechnology ETF (IBB). 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	IBB	Difference
Sharpe ratio: Return per unit of total volatility	2.31	2.00	+0.31
Sortino ratio: Return per unit of downside risk	3.24	2.80	+0.44
Omega ratio: Gain probability vs. loss probability	1.39	1.33	+0.06
Calmar ratio: Return relative to maximum drawdown	3.47	4.25	-0.78
Martin ratio: Return relative to average drawdown	10.25	12.35	-2.10

FBT vs. IBB - Sharpe Ratio Comparison

The current FBT Sharpe Ratio is 2.31, which is comparable to the IBB Sharpe Ratio of 2.00. The chart below compares the historical Sharpe Ratios of FBT and IBB, 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. IBB - Drawdown Comparison

The maximum FBT drawdown since its inception was -40.51%, smaller than the maximum IBB drawdown of -62.85%. Use the drawdown chart below to compare losses from any high point for FBT and IBB.

Drawdown Indicators

	FBT	IBB	Difference
Max Drawdown Largest peak-to-trough decline	-40.51%	-62.85%	+22.34%
Max Drawdown (1Y) Largest decline over 1 year	-14.26%	-9.63%	-4.63%
Max Drawdown (3Y) Largest decline over 3 years	-20.05%	-24.85%	+4.80%
Max Drawdown (5Y) Largest decline over 5 years	-28.98%	-39.82%	+10.84%
Max Drawdown (10Y) Largest decline over 10 years	-32.37%	-39.82%	+7.45%
Current Drawdown Current decline from peak	-4.34%	-5.96%	+1.62%
Average Drawdown Average peak-to-trough decline	-11.09%	-21.06%	+9.97%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.81%	3.31%	+1.50%

Volatility

FBT vs. IBB - Volatility Comparison

First Trust Amex Biotechnology Index (FBT) and iShares Nasdaq Biotechnology ETF (IBB) have volatilities of 6.29% and 6.14%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FBT	IBB	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.29%	6.14%	+0.15%
Volatility (6M) Calculated over the trailing 6-month period	16.08%	15.87%	+0.21%
Volatility (1Y) Calculated over the trailing 1-year period	21.41%	20.45%	+0.96%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.01%	22.12%	-0.11%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.77%	23.12%	+0.65%

FBT vs. IBB - Expense Ratio Comparison

FBT has a 0.57% expense ratio, which is higher than IBB's 0.47% expense ratio.

Dividends

FBT vs. IBB - Dividend Comparison

FBT has not paid dividends to shareholders, while IBB's dividend yield for the trailing twelve months is around 0.22%.

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%
IBB iShares Nasdaq Biotechnology ETF	0.22%	0.23%	0.29%	0.26%	0.31%	0.21%	0.21%	0.33%	0.20%	0.30%	0.19%	0.03%

Frequently Asked Questions

Can I hold both FBT and IBB in my portfolio?

With a correlation of 0.91, FBT and IBB move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, FBT or IBB?

FBT has higher volatility (6.29%) compared to IBB (6.14%). In terms of maximum drawdown, FBT dropped -40.51% vs IBB's -62.85%.

Which ETF is better, FBT or IBB?

On 10-year performance, FBT leads with 9.39% vs 6.89% for IBB. On fees, IBB is cheaper at 0.47% per year. On volatility, IBB has been the lower-risk option at 6.14%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FBT or IBB?

Over the 10-year period, FBT has performed better with a 9.39% return vs 6.89%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FBT or IBB?

IBB is cheaper with a 0.47% expense ratio, compared with 0.57% for FBT.

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

IBB has the higher dividend yield at 0.22%, compared with 0.00% for FBT.

What is the main difference between FBT and IBB?

FBT tracks NYSE Arca Biotechnology Index, while IBB tracks NASDAQ Biotechnology Index. They also come from different issuers: First Trust and iShares. Their fees differ too: 0.57% for FBT and 0.47% for IBB.

Which has better risk-adjusted returns?

FBT currently has the higher Sharpe Ratio (2.31 vs 2.00), 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.