IBB vs VUG: Correlation & Overlap
iShares Biotechnology ETF (IBB) and Vanguard Growth ETF (VUG) show a moderate relationship: their 3-year correlation of weekly returns is 0.46. The two funds also share 0.5% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IBB and VUG?
On 3 years of weekly data the IBB/VUG correlation comes out at 0.46, moderate. Lately the two have drifted apart, with the 1-year correlation at 0.29 versus 0.46 over 3 years. The 5-year figure is 0.58, and annualized covariance runs at 185.7 %².
By 3-year correlation, VUG places #123 of the 168 assets tracked against IBB. The last year tells two different stories: IBB led by 39.2 percentage points, +55.4% for IBB against +16.2% for VUG. On a rolling one-year basis the correlation drifted between 0.29 and 0.78, a moderate band.
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 VUG: side by side
| IBB (iShares Biotechnology ETF) | VUG (Vanguard Growth ETF) | |
|---|---|---|
| 1-year return | +55.4% | +16.2% |
| 5-year return | +26.6% | +78.4% |
| Volatility (ann.) | 20.7% | 19.4% |
| Beta vs S&P 500 | 0.81 | 1.28 |
| Max drawdown (3Y) | -24.9% | -22.8% |
| Dividend yield | 0.22% | 0.40% |
| Expense ratio | 0.44% | 0.03% |
| Assets under management | $9.2B | $372.0B |
| 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. VUG, Vanguard's Large Growth fund, carries $372.0B under management, 146 holdings, a 0.03% expense ratio, a 0.40% trailing dividend yield.
Portfolio overlap between IBB and VUG
The two portfolios are largely distinct, with 3 holdings in common adding up to 0.5% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
Largest positions held only by IBB: AMGN (8.43%), GILD (7.10%), REGN (5.68%), MRNA (3.76%), ARGX (3.76%). Only by VUG: NVDA (12.84%), AAPL (12.63%), MSFT (9.61%), GOOGL (5.81%), AMZN (5.16%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 3 common positions shown.
Year-by-year returns
| Year | IBB | VUG |
|---|---|---|
| 2022 | -13.7% | -33.2% |
| 2023 | +3.8% | +46.8% |
| 2024 | -2.4% | +32.7% |
| 2025 | +28.0% | +19.4% |
| 2026 | +27.4% | +9.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IBB and VUG good diversifiers for each other?
A fair diversifier. At 0.46, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between IBB and VUG?
The IBB/VUG correlation stands at 0.46 on a 3-year window (1 year: 0.29, 5 years: 0.58), computed from weekly returns as of 2026-08-27.
Is VUG a good diversifier for IBB?
A fair diversifier. At 0.46, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
How much do IBB and VUG overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 0.5% by weight over 3 common positions.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/ibb-vs-vug.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/ibb-vs-vug/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: IBB correlations · VUG correlations
