Better Biotech ETF: First Trust's FBT vs. Invesco's PBE
2026-11-14 20:04
•Robert Izquierdo •The Motley Fool
••••• •••••• Axe Cap view
Biotech ETF Showdown: FBT vs. PBE
First Trust's FBT outperforms Invesco's PBE on fees, liquidity, and returns, but PBE offers dividends and a unique strategy.
For South African investors looking to add biotech exposure, First Trust's FBT ETF has a clearer edge over Invesco's PBE. FBT boasts a lower fee (0.55% vs 0.59%), a much larger asset base, and better liquidity — all crucial if you want to move in and out without a fuss. Its 1-year return of 35.7% compared to PBE’s 28.1% means it’s handled recent volatility better, showing a smaller peak-to-trough drawdown. PBE, on the other hand, throws in dividend income (around 1.3%) and uses a smart multi-factor approach, but that hasn’t translated into top-notch returns. The local rand (USD/ZAR) tends to appreciate with risk-on global themes like biotech rallies, making FBT a more attractive proxy for growth sectors at the moment. Watch out if biotech innovation stumbles or if the US dollar threatens to weaken sharply, which could impact overall returns when converted back to rand. this is just our opinion and not financial advice
Buy First Trust's FBT for broad biotech exposure with better cost-efficiency and liquidity; keep PBE on the watchlist if you want dividends and a different strategy but avoid for now.
- FBT
- PBE
- USD/ZAR
- Biotech sector setbacks due to regulatory or clinical trial failures
- Volatile USD/ZAR exchange rate affecting rand-based returns
6/10
First Trust's FBT and Invesco's PBE are compared as primary vehicles for biotech sector exposure. FBT offers lower fees (0.55% vs 0.59%), higher AUM ($3.0B vs $438M), and stronger 1-year returns (35.7% vs 28.1%), while PBE provides dividend income and uses a multi-factor quantitative approach. The choice depends on investor priorities regarding cost, liquidity, and investment strategy.
Our take is based on reporting first published by The Motley Fool.