IBB vs QUAL: Correlation & Overlap
Measured on weekly returns over the past three years, iShares Biotechnology ETF (IBB) and iShares MSCI USA Quality Factor ETF (QUAL) carry a correlation of 0.59, a moderate link. The two funds also share 1.2% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IBB and QUAL?
Across a 3-year window, the weekly returns of IBB and QUAL correlate at 0.59, moderate. Lately the two have drifted apart, with the 1-year correlation at 0.45 versus 0.59 over 3 years. Stretching to 5 years gives 0.64, with an annualized covariance of 172.0 %².
Within IBB's tracked universe of 168 assets, QUAL comes in at #39 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months IBB outperformed by 35.7 percentage points (+55.4% for IBB against +19.7% for QUAL). The rolling one-year correlation moved between 0.48 and 0.82 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 QUAL: side by side
| IBB (iShares Biotechnology ETF) | QUAL (iShares MSCI USA Quality Factor ETF) | |
|---|---|---|
| 1-year return | +55.4% | +19.7% |
| 5-year return | +26.6% | +68.0% |
| Volatility (ann.) | 20.7% | 14.0% |
| Beta vs S&P 500 | 0.81 | 0.93 |
| Max drawdown (3Y) | -24.9% | -18.0% |
| Dividend yield | 0.22% | 0.86% |
| Expense ratio | 0.44% | 0.15% |
| Assets under management | $9.2B | $46.5B |
| Sector / category | ETF · Thematic | ETF · US Style |
IBB is a Health fund from iShares: $9.2B under management, 235 holdings, a 0.44% expense ratio, a 0.22% trailing dividend yield. QUAL, iShares's Large Blend fund, carries $46.5B under management, 123 holdings, a 0.15% expense ratio, a 0.86% trailing dividend yield.
Portfolio overlap between IBB and QUAL
The two portfolios are largely distinct, with 3 holdings in common adding up to 1.2% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
Largest positions held only by IBB: AMGN (8.43%), REGN (5.68%), MRNA (3.76%), ARGX (3.76%), NTRA (3.19%). Only by QUAL: MSFT (7.51%), AAPL (6.62%), NVDA (6.00%), META (3.75%), LLY (3.72%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 3 common positions shown.
Year-by-year returns
| Year | IBB | QUAL |
|---|---|---|
| 2022 | -13.7% | -20.5% |
| 2023 | +3.8% | +30.9% |
| 2024 | -2.4% | +22.3% |
| 2025 | +28.0% | +12.7% |
| 2026 | +27.4% | +13.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IBB and QUAL good diversifiers for each other?
Only partially. A correlation of 0.59 means IBB and QUAL 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 IBB and QUAL?
As of 2026-08-27, the correlation of weekly returns between IBB and QUAL is 0.59 over 3 years, 0.45 over 1 year and 0.64 over 5 years.
Is QUAL a good diversifier for IBB?
Only partially. A correlation of 0.59 means IBB and QUAL share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
How much do IBB and QUAL overlap?
The two funds share 3 holdings amounting to 1.2% of weight, per issuer portfolio files dated 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/ibb-vs-qual.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/ibb-vs-qual/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: IBB correlations · QUAL correlations
