IBB vs VIG: Correlation & Overlap
Measured on weekly returns over the past three years, iShares Biotechnology ETF (IBB) and Vanguard Dividend Appreciation ETF (VIG) carry a correlation of 0.63, a strong link. By holdings, the two funds overlap 1.6% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IBB and VIG?
Across a 3-year window, the weekly returns of IBB and VIG correlate at 0.63, strong. The past 12 months show a weaker link (0.47) than the 3-year average (0.63). Stretching to 5 years gives 0.65, with an annualized covariance of 154.4 %².
Within IBB's tracked universe of 168 assets, VIG comes in at #19 by 3-year correlation. The last year tells two different stories: IBB led by 38.3 percentage points, +55.4% for IBB against +17.1% for VIG. The rolling one-year correlation moved between 0.52 and 0.84 over the past three years, a moderate range. Note the risk asymmetry: IBB runs 1.7 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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 VIG: side by side
| IBB (iShares Biotechnology ETF) | VIG (Vanguard Dividend Appreciation ETF) | |
|---|---|---|
| 1-year return | +55.4% | +17.1% |
| 5-year return | +26.6% | +64.0% |
| Volatility (ann.) | 20.7% | 11.9% |
| Beta vs S&P 500 | 0.81 | 0.74 |
| Max drawdown (3Y) | -24.9% | -15.0% |
| Dividend yield | 0.22% | 1.50% |
| Expense ratio | 0.44% | 0.04% |
| Assets under management | $9.2B | $130.9B |
| Sector / category | ETF · Thematic | ETF · Dividend |
On the fund side, IBB sits in the Health category at iShares, with $9.2B under management, 235 holdings, a 0.44% expense ratio, a 0.22% trailing dividend yield. VIG, Vanguard's Large Blend fund, carries $130.9B under management, 333 holdings, a 0.04% expense ratio, a 1.50% trailing dividend yield.
Portfolio overlap between IBB and VIG
The two portfolios are largely distinct. Weighing the shared positions, 1.6% of the two funds is identical, spread across 2 common holdings. That shared book is a large part of why the returns line up.
Largest positions held only by IBB: VRTX (7.89%), REGN (5.68%), MRNA (3.76%), ARGX (3.76%), NTRA (3.19%). Only by VIG: AVGO (4.65%), AAPL (4.47%), MSFT (4.35%), JPM (4.09%), LLY (3.94%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 2 common positions shown.
Year-by-year returns
| Year | IBB | VIG |
|---|---|---|
| 2022 | -13.7% | -9.8% |
| 2023 | +3.8% | +14.5% |
| 2024 | -2.4% | +17.0% |
| 2025 | +28.0% | +14.2% |
| 2026 | +27.4% | +11.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IBB and VIG good diversifiers for each other?
Only partially. A correlation of 0.63 means IBB and VIG 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 VIG?
Using weekly returns as of 2026-08-27: 0.63 over 3 years, with 0.47 over the last year and 0.65 over 5 years.
Is VIG a good diversifier for IBB?
Only partially. A correlation of 0.63 means IBB and VIG share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
How much do IBB and VIG overlap?
1.6% by weight, across 2 common holdings, based on issuer-disclosed portfolios as of 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/ibb-vs-vig.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/ibb-vs-vig/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: IBB correlations · VIG correlations
