IBB vs TAN: Correlation
iShares Biotechnology ETF (IBB) and Invesco Solar ETF (TAN) show a moderate relationship: their 3-year correlation of weekly returns is 0.39.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IBB and TAN?
Across a 3-year window, the weekly returns of IBB and TAN correlate at 0.39, moderate. The past 12 months show a weaker link (0.15) than the 3-year average (0.39). Stretching to 5 years gives 0.44, with an annualized covariance of 298.1 %².
Among the 168 assets we track against IBB, TAN ranks #149 by 3-year correlation. Correlation aside, the last 12 months split them widely, with IBB ahead by 34.0 points (+55.4% versus +21.4%). On a rolling one-year basis the correlation drifted between 0.23 and 0.72, a moderate band. One caveat on sizing: TAN is 1.8 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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 TAN: side by side
| IBB (iShares Biotechnology ETF) | TAN (Invesco Solar ETF) | |
|---|---|---|
| 1-year return | +55.4% | +21.4% |
| 5-year return | +26.6% | -41.9% |
| Volatility (ann.) | 20.7% | 37.4% |
| Beta vs S&P 500 | 0.81 | 1.04 |
| Max drawdown (3Y) | -24.9% | -55.4% |
| Dividend yield | 0.22% | – |
| Expense ratio | 0.44% | – |
| Assets under management | $9.2B | – |
| Sector / category | ETF · Thematic | ETF · Thematic |
IBB, iShares's Health fund, carries $9.2B under management, 235 holdings, a 0.44% expense ratio, a 0.22% trailing dividend yield.
Year-by-year returns
| Year | IBB | TAN |
|---|---|---|
| 2022 | -13.7% | -5.2% |
| 2023 | +3.8% | -26.8% |
| 2024 | -2.4% | -37.6% |
| 2025 | +28.0% | +48.3% |
| 2026 | +27.4% | +1.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IBB and TAN good diversifiers for each other?
Reasonably. At 0.39, IBB and TAN keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between IBB and TAN?
Using weekly returns as of 2026-08-27: 0.39 over 3 years, with 0.15 over the last year and 0.44 over 5 years.
Is TAN a good diversifier for IBB?
Reasonably. At 0.39, IBB and TAN keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.39 mean?
On the −1 to +1 scale, 0.39 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/ibb-vs-tan.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/ibb-vs-tan/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: IBB correlations · TAN correlations
