FBT vs SPY
First Trust NYSE Arca Biotechnology Index Fund vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. FBT delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | FBT | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.55% | 0.09% | |
| AUM | $2.8B | $821.1B | |
| Dividend Yield | 0.00% | 1.01% | |
| Holdings | 31 | 505 | |
| YTD Return | +29.08% | +12.22% | |
| 1Y Return | +54.67% | +20.83% | |
| 3Y Return (annualized) | +20.83% | +21.70% | |
| 5Y Return (annualized) | +9.85% | +12.98% | |
| Volatility (annualized) | 22.9% | 15.3% | |
| Max Drawdown | -40.5% | -56.5% | |
| Fund Family | First Trust Portfolios (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Jun 19, 2006 | Jan 22, 1993 |
FBT vs SPY Performance
First Trust NYSE Arca Biotechnology Index Fund (FBT) is a ETF from First Trust Portfolios (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year FBT returned +54.67% while SPY returned +20.83%. Year to date, FBT is up 29.08% versus a gain of 12.22% for SPY.
Over three years, FBT compounded at +20.83% per year against +21.70% for SPY; over five years the annualized figures are +9.85% and +12.98% respectively. Across the full 20-year window we track, FBT has the edge at +13.87% annualized vs +8.79%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FBT has been the more volatile fund, with annualized monthly volatility of 22.9% compared with 15.3% for SPY. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -40.5% for FBT and -56.5% for SPY. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.60. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FBT charges 0.55% per year while SPY charges 0.09%. On a $10,000 position that is $55 vs $9 annually, a gap of $46 per year that compounds over a long holding period. On income, FBT currently yields 0.00% against 1.01% for SPY.
Holdings Overlap
FBT and SPY share 6 holdings out of 528 unique holdings combined, representing a 0.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FBT or SPY?
FBT has an expense ratio of 0.55% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $46 per year of difference.
Which performed better, FBT or SPY?
Over the past year FBT returned +54.67% vs +20.83% for SPY, so FBT leads on 1-year performance. Over the longest common window we track (20 years), FBT annualized +13.87% vs +8.79% for SPY. Past performance does not guarantee future results.
Which is riskier, FBT or SPY?
FBT has been the more volatile fund at 22.9% annualized versus 15.3% for SPY. Worst drawdown: FBT -40.5% vs SPY -56.5%.
Should I hold both FBT and SPY?
FBT and SPY have a monthly-return correlation of 0.60, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FBT and SPY?
FBT and SPY share 6 common holdings with a 0.8% weight overlap. Combined, they hold 528 unique securities.
Which pays a higher dividend, FBT or SPY?
FBT yields 0.00% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.
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