IBB vs VTV: Correlation & Overlap
Measured on weekly returns over the past three years, iShares Biotechnology ETF (IBB) and Vanguard Value ETF (VTV) carry a correlation of 0.61, a strong link. Looking through to holdings, 1.8% 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 VTV?
On 3 years of weekly data the IBB/VTV correlation comes out at 0.61, strong. The past 12 months show a weaker link (0.36) than the 3-year average (0.61). The 5-year figure is 0.60, and annualized covariance runs at 149.9 %².
Within IBB's tracked universe of 168 assets, VTV comes in at #30 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months IBB outperformed by 29.7 percentage points (+55.4% for IBB against +25.7% for VTV). The rolling one-year correlation moved between 0.43 and 0.80 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 VTV: side by side
| IBB (iShares Biotechnology ETF) | VTV (Vanguard Value ETF) | |
|---|---|---|
| 1-year return | +55.4% | +25.7% |
| 5-year return | +26.6% | +79.1% |
| Volatility (ann.) | 20.7% | 11.9% |
| Beta vs S&P 500 | 0.81 | 0.65 |
| Max drawdown (3Y) | -24.9% | -14.5% |
| Dividend yield | 0.22% | 1.86% |
| Expense ratio | 0.44% | 0.03% |
| Assets under management | $9.2B | $256.4B |
| Sector / category | ETF · Thematic | ETF · US Style |
IBB is a Health fund from iShares: $9.2B under management, 235 holdings, a 0.44% expense ratio, a 0.22% trailing dividend yield. On the fund side, VTV sits in the Large Value category at Vanguard, with $256.4B under management, 308 holdings, a 0.03% expense ratio, a 1.86% trailing dividend yield.
Portfolio overlap between IBB and VTV
The two portfolios are largely distinct: 1.8% of the funds' weight sits in the same underlying holdings (4 common positions). Correlation tells you they move together; overlap tells you why.
| Common holding | Weight in IBB | Weight in VTV |
|---|---|---|
| AMGN | 8.43% | 0.77% |
| GILD | 7.10% | 0.60% |
| REGN | 5.68% | 0.29% |
| BIIB | 2.23% | 0.11% |
Largest positions held only by IBB: VRTX (7.89%), MRNA (3.76%), ARGX (3.76%), NTRA (3.19%), RVMD (2.83%). Only by VTV: JPM (3.51%), MU (3.46%), BRK.B (2.99%), XOM (2.40%), JNJ (2.30%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 4 common positions shown.
Year-by-year returns
| Year | IBB | VTV |
|---|---|---|
| 2022 | -13.7% | -2.1% |
| 2023 | +3.8% | +9.3% |
| 2024 | -2.4% | +16.0% |
| 2025 | +28.0% | +15.3% |
| 2026 | +27.4% | +19.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IBB and VTV good diversifiers for each other?
Somewhat, no more. With 0.61 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between IBB and VTV?
Using weekly returns as of 2026-08-27: 0.61 over 3 years, with 0.36 over the last year and 0.60 over 5 years.
Is VTV a good diversifier for IBB?
Somewhat, no more. With 0.61 correlation, most large moves hit both names, and the diversification benefit stays modest.
How much do IBB and VTV overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 1.8% by weight over 4 common positions.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/ibb-vs-vtv.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/ibb-vs-vtv/)
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Hubs: IBB correlations · VTV correlations
