XBI vs. FBT: Broad Biotech Exposure or Concentrated Bets?

The State Street SPDR S&P Biotech ETF (NYSEMKT:XBI) provides broad exposure to the biotech industry, while the First Trust NYSE Arca Biotechnology Index Fund (NYSEMKT:FBT) offers a much more concentrated, equal-weighted alternative.Biotech is a volatile sector often driven by clinical trial results and regulatory approvals. This comparison looks at how these two funds offer exposure to the space. While both focus on the same industry, they utilize different indexing methodologies that significantly impact their volatility and concentration risk.Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-year return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool