Invesco Pharmaceuticals ETF (PJP +1.01%) provides exposure to established pharmaceutical companies with lower volatility, while First Trust NYSE Arca Biotechnology Index Fund (FBT +0.66%) targets high-growth biotech stocks with a slightly lower expense ratio.
Both funds concentrate on the healthcare sector but diverge significantly in their industry focus. The First Trust fund and the Invesco ETF both focus on medical innovation, yet they offer very different risk-and-reward profiles due to their specific industry concentrations and historical price volatility.
Snapshot (cost & size)
| Metric | FBT | PJP |
|---|---|---|
| Issuer | First Trust | Invesco |
| Share price | $255.37 (as of 2026-07-02) | $120.91 (as of 2026-07-02) |
| Expense ratio | 0.55% | 0.57% |
| 1-yr return (as of 2026-07-02) | 55.90% | 50.30% |
| Dividend yield | None | 0.90% |
| Beta | 0.65 | 0.45 |
| AUM | $2.9 billion | $364.3 million |
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
At 0.55%, the First Trust fund is slightly more affordable than the Invesco fund, which charges 0.57%. This 0.02 percentage-point difference results in marginally lower overhead for investors seeking specialized biotechnology exposure relative to broader pharmaceutical industry participation.
Performance & risk comparison
| Metric | FBT | PJP |
|---|---|---|
| Max drawdown (5 yr) | (29.90%) | (17.50%) |
| Growth of $1,000 over 5 years (total return) | $1,480 | $1,563 |
What's inside
The Invesco Pharmaceuticals ETF is a non-diversified fund that generally invests at least 90% of its total assets in U.S. pharmaceutical companies. Its portfolio of 29 holdings focuses on businesses involved in the research, development, and distribution of various drugs. Its largest positions include AbbVie (ABBV +0.44%) at 5.6%, Eli Lilly & Co (LLY +0.32%) at 5.4%, and Johnson & Johnson (JNJ 2.44%)at 5.3%. The fund was launched in 2005.
The First Trust NYSE Arca Biotechnology Index Fund tracks the NYSE Arca Biotechnology Index to replicate the price and income performance of the biotech sector. The fund holds 30 stocks. Its largest positions include Corcept Therapeutics (CORT 1.00%) at 5.6%, NeoGenomics (NEO +1.90%) at 5.1%, and Veracyte (VCYT +5.10%) at 5.1%. This fund was launched in 2006.
Which fund is the better buy?
The concentrated focus just on drugmakers has allowed the Invesco Pharmaceuticals ETF — PJP — to capitalize on the GLP-1 boom, led by one of its largest holdings, Eli Lilly. It’s more concentrated in its top 10 holdings than FBT, with 48% in its top 10 compared to 43%. Income-minded investors would prefer PJP’s dividend income, especially given that FBT doesn’t pay any dividends.
The First Trust NYSE Arca Biotechnology Index Fund differs in one notable way: 56% of its holdings are in small caps, compared to 43% for PJP. Similarly, the First Trust ETF has a lot more in mid-caps, 35% of holdings, to 14% for Invesco’s offering. That should produce greater returns, though with higher volatility.
We see the volatility in FBT’s larger maximum drawdown compared to PJP. We also see the outperformance in most time frames. The First Trust fund has returned 17.8%, 7.6%, and 10.8% in the 3-year, 5-year, and 10-year look-backs. That actually isn’t too much better than the Invesco, which returned 17.1% in the 3-year time frame, a superior 9.1% in the 5-year time frame, and 7.5% over the 10-year period.
While the First Trust fund offers better performance over the decade, the lower volatility, dividend income, and generally good performance of the Invesco Pharmaceuticals ETF earns PJP the nod here.
For more guidance on ETF investing, check out the full guide at this link.
