IBB vs SCHD: Correlation & Overlap
iShares Biotechnology ETF (IBB) and Schwab US Dividend Equity ETF (SCHD) show a strong relationship: their 3-year correlation of weekly returns is 0.60. Looking through to holdings, 4.8% 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 IBB and SCHD?
Over the past 3 years, IBB and SCHD moved with a correlation of 0.60, which is strong. The past 12 months show a weaker link (0.24) than the 3-year average (0.60). Over 5 years the correlation is 0.60, and the annualized covariance of weekly returns is 158.8 %².
Among the 168 assets we track against IBB, SCHD ranks #35 by 3-year correlation. The last year tells two different stories: IBB led by 25.8 percentage points, +55.4% for IBB against +29.6% for SCHD. This link changes with the market regime, having swung between 0.24 and 0.79 on a rolling one-year basis. Risk is not evenly split, since IBB carries 1.6 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.
IBB vs SCHD: side by side
| IBB (iShares Biotechnology ETF) | SCHD (Schwab US Dividend Equity ETF) | |
|---|---|---|
| 1-year return | +55.4% | +29.6% |
| 5-year return | +26.6% | +60.9% |
| Volatility (ann.) | 20.7% | 12.9% |
| Beta vs S&P 500 | 0.81 | 0.52 |
| Max drawdown (3Y) | -24.9% | -16.1% |
| Dividend yield | 0.22% | 3.13% |
| Expense ratio | 0.44% | 0.06% |
| Assets under management | $9.2B | $104.2B |
| Sector / category | ETF · Thematic | ETF · Dividend |
IBB, iShares's Health fund, carries $9.2B under management, 235 holdings, a 0.44% expense ratio, a 0.22% trailing dividend yield. SCHD, Schwab ETFs's Large Value fund, carries $104.2B under management, 101 holdings, a 0.06% expense ratio, a 3.13% trailing dividend yield.
Portfolio overlap between IBB and SCHD
The two portfolios are largely distinct: 4.8% of the funds' weight sits in the same underlying holdings (1 common positions). Correlation tells you they move together; overlap tells you why.
| Common holding | Weight in IBB | Weight in SCHD |
|---|---|---|
| AMGN | 8.43% | 4.80% |
Largest positions held only by IBB: VRTX (7.89%), GILD (7.10%), REGN (5.68%), MRNA (3.76%), ARGX (3.76%). Only by SCHD: MRK (4.92%), ABT (4.83%), KO (4.22%), VZ (3.97%), HD (3.94%).
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 | IBB | SCHD |
|---|---|---|
| 2022 | -13.7% | -3.3% |
| 2023 | +3.8% | +4.5% |
| 2024 | -2.4% | +11.7% |
| 2025 | +28.0% | +4.3% |
| 2026 | +27.4% | +29.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IBB and SCHD good diversifiers for each other?
Only partially. A correlation of 0.60 means IBB and SCHD 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 SCHD?
The IBB/SCHD correlation stands at 0.60 on a 3-year window (1 year: 0.24, 5 years: 0.60), computed from weekly returns as of 2026-08-27.
Is SCHD a good diversifier for IBB?
Only partially. A correlation of 0.60 means IBB and SCHD share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
How much do IBB and SCHD overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 4.8% by weight over 1 common positions.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/ibb-vs-schd.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/ibb-vs-schd/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: IBB correlations · SCHD correlations
