DIA vs IBB: Correlation & Overlap
Measured on weekly returns over the past three years, SPDR Dow Jones Industrial Average ETF (DIA) and iShares Biotechnology ETF (IBB) carry a correlation of 0.60, a strong link. The two funds also share 4.9% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are DIA and IBB?
On 3 years of weekly data the DIA/IBB correlation comes out at 0.60, strong. Lately the two have drifted apart, with the 1-year correlation at 0.49 versus 0.60 over 3 years. The 5-year figure is 0.63, and annualized covariance runs at 162.5 %².
By 3-year correlation, IBB places #64 of the 116 assets tracked against DIA. The last year tells two different stories: IBB led by 36.2 percentage points, +19.2% for DIA against +55.4% for IBB. The rolling one-year correlation moved between 0.52 and 0.82 over the past three years, a moderate range. Note the risk asymmetry: IBB runs 1.6 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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.
DIA vs IBB: side by side
| DIA (SPDR Dow Jones Industrial Average ETF) | IBB (iShares Biotechnology ETF) | |
|---|---|---|
| 1-year return | +19.2% | +55.4% |
| 5-year return | +64.8% | +26.6% |
| Volatility (ann.) | 13.0% | 20.7% |
| Beta vs S&P 500 | 0.79 | 0.81 |
| Max drawdown (3Y) | -16.0% | -24.9% |
| Dividend yield | 1.37% | 0.22% |
| Expense ratio | 0.16% | 0.44% |
| Assets under management | $45.2B | $9.2B |
| Sector / category | ETF · US Large Cap | ETF · Thematic |
DIA, State Street Investment Management's Large Value fund, carries $45.2B under management, 30 holdings, a 0.16% expense ratio, a 1.37% 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 DIA and IBB
The two portfolios are largely distinct. Weighing the shared positions, 4.9% of the two funds is identical, spread across 1 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in DIA | Weight in IBB |
|---|---|---|
| AMGN | 4.89% | 8.43% |
Largest positions held only by DIA: GS (11.56%), CAT (9.13%), MSFT (5.51%), UNH (4.45%), V (4.26%). Only by IBB: VRTX (7.89%), GILD (7.10%), REGN (5.68%), MRNA (3.76%), ARGX (3.76%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 1 common positions shown.
Year-by-year returns
| Year | DIA | IBB |
|---|---|---|
| 2022 | -7.0% | -13.7% |
| 2023 | +16.0% | +3.8% |
| 2024 | +14.8% | -2.4% |
| 2025 | +14.7% | +28.0% |
| 2026 | +12.3% | +27.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are DIA and IBB good diversifiers for each other?
Only partially. A correlation of 0.60 means DIA and IBB share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between DIA and IBB?
The DIA/IBB correlation stands at 0.60 on a 3-year window (1 year: 0.49, 5 years: 0.63), computed from weekly returns as of 2026-08-27.
Is IBB a good diversifier for DIA?
Only partially. A correlation of 0.60 means DIA and IBB share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
How much do DIA and IBB overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 4.9% by weight over 1 common positions.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/dia-vs-ibb.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/dia-vs-ibb/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: DIA correlations · IBB correlations
