Two ETFs to Monitor for Increased Trading Activity in Biotechnology Stocks

Biotech ETF Performance: The iShares Biotechnology ETF (IBB) has surged 35% over the past six months, significantly outperforming the SPDR S&P 500 ETF (SPY), which rose 12% in the same period. Year-to-date, IBB has increased by 23.6% compared to SPY's 11.6% gain.

Market Valuation and Growth: Despite the recent rally, biotech stocks are trading below the broader market, with the MSCI USA Pharmaceuticals, Biotechnology and Life Sciences Index showing a forward P/E of 15.92X compared to the S&P 500's 23.25X. The projected EPS growth for the Biomedical and Genetics sector is notably higher at 22.38%.

Regulatory Approvals and Investments: In 2025, the FDA approved numerous biotechnology drugs, contributing to a total of 38 approvals so far. Biopharma venture investments reached $5.8 billion in Q3 2025, with significant licensing deals supporting the sector.

Market Sentiment and Future Outlook: Recent deals by major companies like Pfizer and AstraZeneca to lower drug prices and avoid tariffs signal relief for the pharmaceutical industry amid ongoing uncertainties. The biotech sector is expected to perform well in a falling interest rate environment, aided by recent Federal Reserve rate cuts.

Wall Street Performance: In the last trading session, Wall Street saw a decline, with SPY down 0.9%, DIA falling 1.2%, and QQQ decreasing by 0.9%.

Increased ETF Trading Volumes: Two specialized ETFs, PBE and FBT, experienced trading volumes significantly higher than their averages, indicating potential interest in these funds.

PBE ETF Details: The Invesco Biotechnology & Genome ETF (PBE) traded 20,471 shares, over four times its average volume, and saw a slight decrease of 0.3% in the last session, but gained 6.1% over the past month.

FBT ETF Details: The First Trust NYSE Arca Biotechnology ETF (FBT) had a trading volume of 89,466 shares, more than four times its average, with a minor increase of 0.2% in the last session and a 5.7% gain over the past month.

Overview of Invesco Biotechnology & Genome ETF (PBE): Launched in 2005, PBE is a smart beta ETF focused on the healthcare sector, aiming to outperform through non-cap weighted strategies based on various investment criteria. It has approximately $271.25 million in assets and an expense ratio of 0.58%.

Performance and Comparison: PBE has shown a return of about 30.14% over the past year with a high-risk profile, while investors may also consider traditional market cap weighted ETFs like IBB and XBI for lower costs and risks.

Overview of Invesco Biotechnology & Genome ETF (PBE): The PBE ETF, launched in 2005 and managed by Invesco, focuses on the Healthcare - Biotech sector, offering low-cost, diversified exposure with an annual operating expense of 0.58% and a current asset value of over $271 million.

Performance and Alternatives: PBE has shown an 8.14% return year-to-date and a 20.51% increase over the past year, but it carries a higher risk profile with a beta of 0.80; investors may also consider alternatives like SPDR S&P Biotech ETF (XBI) and iShares Biotechnology ETF (IBB).

Invesco Biotechnology & Genome ETF Overview: Launched in 2005, the Invesco Biotechnology & Genome ETF (PBE) focuses on the Health Care sector, utilizing a smart beta strategy to potentially outperform traditional market cap weighted ETFs. It has approximately $263.21 million in assets and an expense ratio of 0.58%.

Performance and Alternatives: PBE has shown a gain of about 15.99% over the past year, but it carries higher risk with a beta of 0.80. Investors may also consider lower-cost alternatives like the iShares Biotechnology ETF (IBB) and SPDR S&P Biotech ETF (XBI), which have larger asset bases and lower expense ratios.