DGRO vs IBB: Correlation & Overlap
How closely do iShares Core Dividend Growth ETF (DGRO) and iShares Biotechnology ETF (IBB) trade together? Their weekly returns over three years give a correlation of 0.65, which is strong. Looking through to holdings, 2.4% of the two portfolios is the same by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are DGRO and IBB?
Over the past 3 years, DGRO and IBB moved with a correlation of 0.65, which is strong. The past 12 months show a weaker link (0.46) than the 3-year average (0.65). Over 5 years the correlation is 0.65, and the annualized covariance of weekly returns is 153.1 %².
By 3-year correlation, IBB places #49 of the 138 assets tracked against DGRO. Correlation aside, the last 12 months split them widely, with IBB ahead by 34.4 points (+21.0% versus +55.4%). On a rolling one-year basis the correlation drifted between 0.51 and 0.83, a moderate band. Risk is not evenly split, since IBB carries 1.8 times the volatility of the other side.
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.
DGRO vs IBB: side by side
| DGRO (iShares Core Dividend Growth ETF) | IBB (iShares Biotechnology ETF) | |
|---|---|---|
| 1-year return | +21.0% | +55.4% |
| 5-year return | +67.9% | +26.6% |
| Volatility (ann.) | 11.4% | 20.7% |
| Beta vs S&P 500 | 0.65 | 0.81 |
| Max drawdown (3Y) | -14.0% | -24.9% |
| Dividend yield | 1.89% | 0.22% |
| Expense ratio | 0.08% | 0.44% |
| Assets under management | $42.8B | $9.2B |
| Sector / category | ETF · Dividend | ETF · Thematic |
DGRO is a Large Value fund from iShares: $42.8B under management, 383 holdings, a 0.08% expense ratio, a 1.89% trailing dividend yield. IBB, iShares's Health fund, carries $9.2B under management, 235 holdings, a 0.44% expense ratio, a 0.22% trailing dividend yield.
Portfolio overlap between DGRO and IBB
The two portfolios are largely distinct, with 2 holdings in common adding up to 2.4% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
Largest positions held only by DGRO: MSFT (3.39%), JNJ (3.16%), JPM (3.14%), ABBV (3.03%), XOM (2.86%). Only by IBB: VRTX (7.89%), REGN (5.68%), MRNA (3.76%), ARGX (3.76%), NTRA (3.19%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 2 common positions shown.
Year-by-year returns
| Year | DGRO | IBB |
|---|---|---|
| 2022 | -7.9% | -13.7% |
| 2023 | +10.5% | +3.8% |
| 2024 | +16.6% | -2.4% |
| 2025 | +15.7% | +28.0% |
| 2026 | +15.2% | +27.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are DGRO and IBB good diversifiers for each other?
To a limited degree. At 0.65 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between DGRO and IBB?
As of 2026-08-27, the correlation of weekly returns between DGRO and IBB is 0.65 over 3 years, 0.46 over 1 year and 0.65 over 5 years.
Is IBB a good diversifier for DGRO?
To a limited degree. At 0.65 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
How much do DGRO and IBB overlap?
2.4% by weight, across 2 common holdings, based on issuer-disclosed portfolios as of 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/dgro-vs-ibb.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/dgro-vs-ibb/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: DGRO correlations · IBB correlations
