IBB vs VEA: Correlation & Overlap
How closely do iShares Biotechnology ETF (IBB) and Vanguard FTSE Developed Markets ETF (VEA) trade together? Their weekly returns over three years give a correlation of 0.58, which is moderate. Looking through to holdings, 0.3% 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 VEA?
Across a 3-year window, the weekly returns of IBB and VEA correlate at 0.58, moderate. The link has loosened recently: the 1-year correlation (0.43) runs below the 3-year figure (0.58). Stretching to 5 years gives 0.61, with an annualized covariance of 182.5 %².
By 3-year correlation, VEA places #47 of the 168 assets tracked against IBB. The last year tells two different stories: IBB led by 26.9 percentage points, +55.4% for IBB against +28.5% for VEA. Across three years, the rolling one-year figure varied moderately, from 0.47 to 0.80.
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 VEA: side by side
| IBB (iShares Biotechnology ETF) | VEA (Vanguard FTSE Developed Markets ETF) | |
|---|---|---|
| 1-year return | +55.4% | +28.5% |
| 5-year return | +26.6% | +63.5% |
| Volatility (ann.) | 20.7% | 15.1% |
| Beta vs S&P 500 | 0.81 | 0.79 |
| Max drawdown (3Y) | -24.9% | -13.5% |
| Dividend yield | 0.22% | 2.56% |
| Expense ratio | 0.44% | 0.03% |
| Assets under management | $9.2B | $314.9B |
| Sector / category | ETF · Thematic | ETF · International |
IBB, iShares's Health fund, carries $9.2B under management, 235 holdings, a 0.44% expense ratio, a 0.22% trailing dividend yield. VEA is a Foreign Large Blend fund from Vanguard: $314.9B under management, 3769 holdings, a 0.03% expense ratio, a 2.56% trailing dividend yield.
Portfolio overlap between IBB and VEA
The two portfolios are largely distinct: 0.3% of the funds' weight sits in the same underlying holdings (9 common positions). Correlation tells you they move together; overlap tells you why.
| Common holding | Weight in IBB | Weight in VEA |
|---|---|---|
| ARGX | 3.76% | 0.17% |
| GMAB | 1.22% | 0.05% |
| ABVX | 0.52% | 0.03% |
| EBS | 0.02% | 0.12% |
| TXG | 0.50% | 0.01% |
| CRL | 0.97% | 0.00% |
| LKFT | 0.08% | 0.00% |
| AURA | 0.03% | 0.00% |
| CAI | 0.23% | 0.00% |
Largest positions held only by IBB: AMGN (8.43%), VRTX (7.89%), GILD (7.10%), REGN (5.68%), MRNA (3.76%). Only by VEA: 005930 (2.53%), ASML (2.00%), 000660 (1.98%), HSBA (1.15%), ROP (0.97%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 9 common positions shown.
Year-by-year returns
| Year | IBB | VEA |
|---|---|---|
| 2022 | -13.7% | -15.3% |
| 2023 | +3.8% | +17.9% |
| 2024 | -2.4% | +3.1% |
| 2025 | +28.0% | +35.2% |
| 2026 | +27.4% | +18.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IBB and VEA good diversifiers for each other?
Somewhat, no more. With 0.58 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between IBB and VEA?
Using weekly returns as of 2026-08-27: 0.58 over 3 years, with 0.43 over the last year and 0.61 over 5 years.
Is VEA a good diversifier for IBB?
Somewhat, no more. With 0.58 correlation, most large moves hit both names, and the diversification benefit stays modest.
How much do IBB and VEA overlap?
The two funds share 9 holdings amounting to 0.3% of weight, per issuer portfolio files dated 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/ibb-vs-vea.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/ibb-vs-vea/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: IBB correlations · VEA correlations
