IBB vs USMV: Correlation & Overlap
Measured on weekly returns over the past three years, iShares Biotechnology ETF (IBB) and iShares MSCI USA Min Vol Factor ETF (USMV) carry a correlation of 0.64, a strong link. Looking through to holdings, 4.5% 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 USMV?
Across a 3-year window, the weekly returns of IBB and USMV correlate at 0.64, strong. Little has changed lately, as the 1-year reading of 0.56 lands near the 3-year figure. Stretching to 5 years gives 0.68, with an annualized covariance of 131.5 %².
Within IBB's tracked universe of 168 assets, USMV comes in at #17 by 3-year correlation. The last year tells two different stories: IBB led by 45.3 percentage points, +55.4% for IBB against +10.1% for USMV. The rolling one-year correlation moved between 0.54 and 0.82 over the past three years, a moderate range. Risk is not evenly split, since IBB carries 2.1 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 USMV: side by side
| IBB (iShares Biotechnology ETF) | USMV (iShares MSCI USA Min Vol Factor ETF) | |
|---|---|---|
| 1-year return | +55.4% | +10.1% |
| 5-year return | +26.6% | +42.3% |
| Volatility (ann.) | 20.7% | 9.9% |
| Beta vs S&P 500 | 0.81 | 0.51 |
| Max drawdown (3Y) | -24.9% | -9.4% |
| Dividend yield | 0.22% | 1.48% |
| Expense ratio | 0.44% | 0.15% |
| Assets under management | $9.2B | $23.6B |
| Sector / category | ETF · Thematic | ETF · US Style |
IBB, iShares's Health fund, carries $9.2B under management, 235 holdings, a 0.44% expense ratio, a 0.22% trailing dividend yield. USMV, iShares's Large Blend fund, carries $23.6B under management, 164 holdings, a 0.15% expense ratio, a 1.48% trailing dividend yield.
Portfolio overlap between IBB and USMV
The two portfolios are largely distinct: 4.5% of the funds' weight sits in the same underlying holdings (8 common positions). Correlation tells you they move together; overlap tells you why.
| Common holding | Weight in IBB | Weight in USMV |
|---|---|---|
| VRTX | 7.89% | 1.63% |
| GILD | 7.10% | 0.87% |
| ALNY | 2.19% | 0.51% |
| INCY | 1.75% | 0.48% |
| AMGN | 8.43% | 0.37% |
| NBIX | 1.07% | 0.34% |
| UTHR | 1.46% | 0.18% |
| REGN | 5.68% | 0.07% |
Largest positions held only by IBB: MRNA (3.76%), ARGX (3.76%), NTRA (3.19%), RVMD (2.83%), ILMN (2.34%). Only by USMV: MSFT (1.68%), NEM (1.65%), JNJ (1.58%), WELL (1.57%), APH (1.54%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 8 common positions shown.
Year-by-year returns
| Year | IBB | USMV |
|---|---|---|
| 2022 | -13.7% | -9.4% |
| 2023 | +3.8% | +10.3% |
| 2024 | -2.4% | +15.7% |
| 2025 | +28.0% | +7.6% |
| 2026 | +27.4% | +9.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IBB and USMV good diversifiers for each other?
Somewhat, no more. With 0.64 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between IBB and USMV?
The IBB/USMV correlation stands at 0.64 on a 3-year window (1 year: 0.56, 5 years: 0.68), computed from weekly returns as of 2026-08-27.
Is USMV a good diversifier for IBB?
Somewhat, no more. With 0.64 correlation, most large moves hit both names, and the diversification benefit stays modest.
How much do IBB and USMV overlap?
The two funds share 8 holdings amounting to 4.5% of weight, per issuer portfolio files dated 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/ibb-vs-usmv.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/ibb-vs-usmv/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: IBB correlations · USMV correlations
