BME vs IBB: Correlation
Measured on weekly returns over the past three years, Blackrock Health Sciences Trust (BME) and iShares Biotechnology ETF (IBB) carry a correlation of 0.78, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are BME and IBB?
On 3 years of weekly data the BME/IBB correlation comes out at 0.78, strong. Little has changed lately, as the 1-year reading of 0.80 lands near the 3-year figure. The 5-year figure is 0.73, and annualized covariance runs at 231.6 %².
IBB is one of the assets that tracks BME most closely: it ranks #3 out of the 34 assets we track against BME. Their recent paths diverged sharply: over the last 12 months IBB outperformed by 19.4 percentage points (+36.0% for BME against +55.4% for IBB).
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
BME vs IBB: side by side
| BME (Blackrock Health Sciences Trust) | IBB (iShares Biotechnology ETF) | |
|---|---|---|
| 1-year return | +36.0% | +55.4% |
| 5-year return | +33.5% | +26.6% |
| Volatility (ann.) | 14.4% | 20.7% |
| Beta vs S&P 500 | 0.45 | 0.81 |
| Max drawdown (3Y) | -14.4% | -24.9% |
| Market cap | – | – |
| P/E (trailing) | 7.8 | – |
| Dividend yield | 6.80% | 0.22% |
| Expense ratio | – | 0.44% |
| Assets under management | – | $9.2B |
| Sector / category | US Listed | ETF · Thematic |
IBB, iShares's Health fund, carries $9.2B under management, 235 holdings, a 0.44% expense ratio, a 0.22% trailing dividend yield.
Year-by-year returns
| Year | BME | IBB |
|---|---|---|
| 2022 | -4.6% | -13.7% |
| 2023 | -1.1% | +3.8% |
| 2024 | -0.1% | -2.4% |
| 2025 | +17.9% | +28.0% |
| 2026 | +17.9% | +27.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are BME and IBB good diversifiers for each other?
Somewhat, no more. With 0.78 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between BME and IBB?
The BME/IBB correlation stands at 0.78 on a 3-year window (1 year: 0.80, 5 years: 0.73), computed from weekly returns as of 2026-08-27.
Is IBB a good diversifier for BME?
Somewhat, no more. With 0.78 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.78 mean?
A reading of 0.78 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
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Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/bme-vs-ibb/)
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Related comparisons
Hubs: BME correlations · IBB correlations
