FBT vs VOO
First Trust NYSE Arca Biotechnology Index Fund vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. FBT delivered stronger 1-year returns. VOO offers more diversification with 509 holdings.
Side-by-Side Comparison
| Metric | FBT | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.55% | 0.03% | |
| AUM | $2.8B | $997.4B | |
| Dividend Yield | 0.00% | 1.08% | |
| Holdings | 31 | 509 | |
| YTD Return | +22.96% | +14.27% | |
| 1Y Return | +48.54% | +21.79% | |
| 3Y Return (annualized) | +18.83% | +22.19% | |
| 5Y Return (annualized) | +8.92% | +13.28% | |
| Volatility (annualized) | 22.9% | 14.2% | |
| Max Drawdown | -40.5% | -34.3% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jun 19, 2006 | Sep 7, 2010 |
FBT vs VOO Performance
First Trust NYSE Arca Biotechnology Index Fund (FBT) is a ETF from First Trust Portfolios (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year FBT returned +48.54% while VOO returned +21.79%. Year to date, FBT is up 22.96% versus a gain of 14.27% for VOO.
Over three years, FBT compounded at +18.83% per year against +22.19% for VOO; over five years the annualized figures are +8.92% and +13.28% respectively. Across the full 16-year window we track, FBT has the edge at +13.61% annualized vs +13.59%. 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 14.2% for VOO. 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 -34.3% for VOO. 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 0.59. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FBT charges 0.55% per year while VOO charges 0.03%. On a $10,000 position that is $55 vs $3 annually, a gap of $52 per year that compounds over a long holding period. On income, FBT currently yields 0.00% against 1.08% for VOO.
Holdings Overlap
FBT and VOO share 6 holdings out of 529 unique holdings combined, representing a 0.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FBT or VOO?
FBT has an expense ratio of 0.55% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $52 per year of difference.
Which performed better, FBT or VOO?
Over the past year FBT returned +48.54% vs +21.79% for VOO, so FBT leads on 1-year performance. Over the longest common window we track (16 years), FBT annualized +13.61% vs +13.59% for VOO. Past performance does not guarantee future results.
Which is riskier, FBT or VOO?
FBT has been the more volatile fund at 22.9% annualized versus 14.2% for VOO. Worst drawdown: FBT -40.5% vs VOO -34.3%.
Should I hold both FBT and VOO?
FBT and VOO have a monthly-return correlation of 0.59, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FBT and VOO?
FBT and VOO share 6 common holdings with a 0.7% weight overlap. Combined, they hold 529 unique securities.
Which pays a higher dividend, FBT or VOO?
FBT yields 0.00% while VOO yields 1.08%, so VOO currently pays the higher dividend yield.
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