IBB vs QQQ: Correlation & Overlap
Measured on weekly returns over the past three years, iShares Biotechnology ETF (IBB) and Invesco QQQ Trust (QQQ) carry a correlation of 0.47, a moderate link. The two funds also share 3.0% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IBB and QQQ?
Over the past 3 years, IBB and QQQ moved with a correlation of 0.47, which is moderate. The past 12 months show a weaker link (0.27) than the 3-year average (0.47). Over 5 years the correlation is 0.56, and the annualized covariance of weekly returns is 189.5 %².
Among the 168 assets we track against IBB, QQQ ranks #115 by 3-year correlation. The last year tells two different stories: IBB led by 29.1 percentage points, +55.4% for IBB against +26.3% for QQQ. The rolling one-year correlation moved between 0.26 and 0.73 over the past three years, a moderate range.
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.
IBB vs QQQ: side by side
| IBB (iShares Biotechnology ETF) | QQQ (Invesco QQQ Trust) | |
|---|---|---|
| 1-year return | +55.4% | +26.3% |
| 5-year return | +26.6% | +95.4% |
| Volatility (ann.) | 20.7% | 19.6% |
| Beta vs S&P 500 | 0.81 | 1.28 |
| Max drawdown (3Y) | -24.9% | -22.8% |
| Dividend yield | 0.22% | 0.44% |
| Expense ratio | 0.44% | 0.18% |
| Assets under management | $9.2B | $452.8B |
| Sector / category | ETF · Thematic | ETF · US Growth & Tech |
IBB, iShares's Health fund, carries $9.2B under management, 235 holdings, a 0.44% expense ratio, a 0.22% trailing dividend yield. QQQ is a Large Growth fund from Invesco: $452.8B under management, 104 holdings, a 0.18% expense ratio, a 0.44% trailing dividend yield.
Portfolio overlap between IBB and QQQ
The two portfolios are largely distinct: 3.0% of the funds' weight sits in the same underlying holdings (5 common positions). Correlation tells you they move together; overlap tells you why.
| Common holding | Weight in IBB | Weight in QQQ |
|---|---|---|
| AMGN | 8.43% | 1.06% |
| GILD | 7.10% | 0.82% |
| VRTX | 7.89% | 0.62% |
| REGN | 5.68% | 0.37% |
| ALNY | 2.19% | 0.14% |
Largest positions held only by IBB: MRNA (3.76%), ARGX (3.76%), NTRA (3.19%), RVMD (2.83%), ILMN (2.34%). Only by QQQ: NVDA (8.15%), AAPL (7.39%), MSFT (5.93%), MU (4.69%), AMZN (4.50%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 5 common positions shown.
Year-by-year returns
| Year | IBB | QQQ |
|---|---|---|
| 2022 | -13.7% | -32.6% |
| 2023 | +3.8% | +54.9% |
| 2024 | -2.4% | +25.6% |
| 2025 | +28.0% | +20.8% |
| 2026 | +27.4% | +17.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IBB and QQQ good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.47 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between IBB and QQQ?
The IBB/QQQ correlation stands at 0.47 on a 3-year window (1 year: 0.27, 5 years: 0.56), computed from weekly returns as of 2026-08-27.
Is QQQ a good diversifier for IBB?
Yes, to a useful degree: a correlation of 0.47 leaves real independence between the two, which historically damped combined volatility.
How much do IBB and QQQ overlap?
3.0% by weight, across 5 common holdings, based on issuer-disclosed portfolios as of 2026-08-26.
Use this data
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