IBB vs XLE: Correlation & Overlap
Measured on weekly returns over the past three years, iShares Biotechnology ETF (IBB) and Energy Select Sector SPDR Fund (XLE) carry a correlation of 0.08, a near-zero link. Looking through to holdings, 0% 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 XLE?
On 3 years of weekly data the IBB/XLE correlation comes out at 0.08, near zero, meaning they move largely independently. Lately the two have drifted apart, with the 1-year correlation at -0.42 versus 0.08 over 3 years. The 5-year figure is 0.04, and annualized covariance runs at 39.7 %².
Within IBB's tracked universe of 168 assets, XLE comes in at #158 by 3-year correlation. Over the last 12 months IBB came out ahead by 11.4 percentage points (+55.4% against +44.0%). Do not treat this figure as fixed: across three years the rolling one-year correlation ranged all the way from -0.49 to 0.41.
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 XLE: side by side
| IBB (iShares Biotechnology ETF) | XLE (Energy Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +55.4% | +44.0% |
| 5-year return | +26.6% | +206.7% |
| Volatility (ann.) | 20.7% | 23.1% |
| Beta vs S&P 500 | 0.81 | 0.27 |
| Max drawdown (3Y) | -24.9% | -20.1% |
| Dividend yield | 0.22% | 2.55% |
| Expense ratio | 0.44% | 0.08% |
| Assets under management | $9.2B | $39.2B |
| Sector / category | ETF · Thematic | Sector ETF |
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. XLE is an Equity Energy fund from State Street Investment Management: $39.2B under management, 22 holdings, a 0.08% expense ratio, a 2.55% trailing dividend yield.
Portfolio overlap between IBB and XLE
The two portfolios are largely distinct, with 0 holdings in common adding up to 0% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
Largest positions held only by IBB: AMGN (8.43%), VRTX (7.89%), GILD (7.10%), REGN (5.68%), MRNA (3.76%). Only by XLE: XOM (20.03%), CVX (14.84%), COP (6.30%), MPC (5.40%), PSX (5.37%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26.
Year-by-year returns
| Year | IBB | XLE |
|---|---|---|
| 2022 | -13.7% | +64.3% |
| 2023 | +3.8% | -0.6% |
| 2024 | -2.4% | +5.6% |
| 2025 | +28.0% | +7.9% |
| 2026 | +27.4% | +41.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IBB and XLE good diversifiers for each other?
Yes: at 0.08, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between IBB and XLE?
Using weekly returns as of 2026-08-27: 0.08 over 3 years, with -0.42 over the last year and 0.04 over 5 years.
Is XLE a good diversifier for IBB?
Yes: at 0.08, the two have gone their own ways historically, which is what genuine diversification looks like.
How much do IBB and XLE overlap?
0% by weight, across 0 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-xle.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/ibb-vs-xle/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: IBB correlations · XLE correlations
