State Street SPDR S&P Pharmaceuticals vs First Trust NYSE Arca Biotech: Which Is the Better ETF For Your Portfolio?

The article compares two healthcare-focused ETFs: State Street SPDR S&P Pharmaceuticals (XPH) and First Trust NYSE Arca Biotechnology Index Fund (FBT). XPH offers lower costs (0.35% expense ratio vs 0.55%), broader diversification with 59 holdings, and better 1-year performance (38% vs 35.90%), plus dividend income. FBT provides more concentrated biotech exposure with 30 holdings. The analysis concludes XPH is the more appealing long-term choice due to its lower fees and superior performance.