First Trust Amex Biotechnology Index - FBT

FBT is a popular choice among biotech funds, managing to accumulate substantial assets despite taking a somewhat unusual approach to the segment. The underlying index contains only 30 names (increased from 20 in October 2014), which is more limited than some other funds in the segment, such as IBB and XBI. Exposure includes access to pharmaceuticals and medical technology in addition to traditional biotech, with a higher small-cap and midcap presence than our segment benchmark. The bias away from larger firms stems from the equally weighted basket, an approach that’s not unusual. Still, FBT’s equal weighting of about 30 stocks produces a relatively concentrated basket. FBT trades well with reasonably tight spreads and remains a formidable name in the biotechnology sector.

All Holdings from FBT