FXI vs IBB: Correlation & Overlap
How closely do iShares China Large-Cap ETF (FXI) and iShares Biotechnology ETF (IBB) trade together? Their weekly returns over three years give a correlation of 0.24, which is weak. By holdings, the two funds overlap 0% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are FXI and IBB?
Across a 3-year window, the weekly returns of FXI and IBB correlate at 0.24, weak. Lately the two have drifted apart, with the 1-year correlation at 0.13 versus 0.24 over 3 years. Stretching to 5 years gives 0.28, with an annualized covariance of 126.2 %².
By 3-year correlation, IBB places #58 of the 74 assets tracked against FXI. The last year tells two different stories: IBB led by 61.5 percentage points, -6.1% for FXI against +55.4% for IBB. On a rolling one-year basis the correlation drifted between 0.10 and 0.58, a moderate band.
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.
FXI vs IBB: side by side
| FXI (iShares China Large-Cap ETF) | IBB (iShares Biotechnology ETF) | |
|---|---|---|
| 1-year return | -6.1% | +55.4% |
| 5-year return | -1.4% | +26.6% |
| Volatility (ann.) | 25.3% | 20.7% |
| Beta vs S&P 500 | 0.68 | 0.81 |
| Max drawdown (3Y) | -23.2% | -24.9% |
| Dividend yield | 1.87% | 0.22% |
| Expense ratio | 0.73% | 0.44% |
| Assets under management | $4.3B | $9.2B |
| Sector / category | ETF · International | ETF · Thematic |
On the fund side, FXI sits in the Greater China Region category at iShares, with $4.3B under management, 50 holdings, a 0.73% expense ratio, a 1.87% 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 FXI and IBB
The two portfolios are largely distinct. Weighing the shared positions, 0% of the two funds is identical, spread across 0 common holdings. That shared book is a large part of why the returns line up.
Largest positions held only by FXI: 9988 (9.72%), 939 (9.09%), 700 (8.51%), 1398 (6.35%), 1810 (5.16%). Only by IBB: AMGN (8.43%), VRTX (7.89%), GILD (7.10%), REGN (5.68%), MRNA (3.76%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26.
Year-by-year returns
| Year | FXI | IBB |
|---|---|---|
| 2022 | -20.7% | -13.7% |
| 2023 | -12.4% | +3.8% |
| 2024 | +29.0% | -2.4% |
| 2025 | +28.9% | +28.0% |
| 2026 | -7.3% | +27.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are FXI and IBB good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.24 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between FXI and IBB?
The FXI/IBB correlation stands at 0.24 on a 3-year window (1 year: 0.13, 5 years: 0.28), computed from weekly returns as of 2026-08-27.
Is IBB a good diversifier for FXI?
Yes, to a useful degree: a correlation of 0.24 leaves real independence between the two, which historically damped combined volatility.
How much do FXI and IBB overlap?
The two funds share 0 holdings amounting to 0% of weight, per issuer portfolio files dated 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/fxi-vs-ibb.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/fxi-vs-ibb/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: FXI correlations · IBB correlations
