sentiment regime
downturn
recovery
FBT vs IYH
Equal-weight biotech concentration amplifies drawdown and recovery
FBT equal-dollar weighting gives a small clinical biotech the same allocation as a $150B drugmaker; sentiment swings amplify moves versus IYH's market-cap basket.
FBT — equal-dollar weighting
IYH — market-cap weighting
30 biotech constituents · equal $ each
weight
anchored to mega-cap cash-flow names
$2B clinical-stage name
same allocation as $150B drugmaker
$150B drugmaker
tiny slice of IYH pie
sentiment deteriorates
rising rates
FDA setback
funding winter
sentiment recovers
M&A premium
pipeline break
GLP-1 catalyst
deeper drawdown
5yr max DD -29.9% · vs IYH flatter
sharper recovery
1yr ≈ 2x IYH · 3/5/10yr lags
FBT equal-dollar weight
IYH market-cap weight
sentiment outflow (downturn)
sentiment inflow (recovery)