IBB vs XLF: Correlation & Overlap
iShares Biotechnology ETF (IBB) and Financial Select Sector SPDR Fund (XLF) show a moderate relationship: their 3-year correlation of weekly returns is 0.44. The two funds also share 0% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IBB and XLF?
On 3 years of weekly data the IBB/XLF correlation comes out at 0.44, moderate. The past 12 months show a weaker link (0.24) than the 3-year average (0.44). The 5-year figure is 0.50, and annualized covariance runs at 145.9 %².
Within IBB's tracked universe of 168 assets, XLF comes in at #133 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months IBB outperformed by 46.1 percentage points (+55.4% for IBB against +9.3% for XLF). On a rolling one-year basis the correlation drifted between 0.29 and 0.74, 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 XLF: side by side
| IBB (iShares Biotechnology ETF) | XLF (Financial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +55.4% | +9.3% |
| 5-year return | +26.6% | +64.2% |
| Volatility (ann.) | 20.7% | 16.2% |
| Beta vs S&P 500 | 0.81 | 0.84 |
| Max drawdown (3Y) | -24.9% | -15.5% |
| Dividend yield | 0.22% | 1.42% |
| Expense ratio | 0.44% | 0.08% |
| Assets under management | $9.2B | $57.9B |
| Sector / category | ETF · Thematic | Sector ETF |
IBB, iShares's Health fund, carries $9.2B under management, 235 holdings, a 0.44% expense ratio, a 0.22% trailing dividend yield. XLF is a Financial fund from State Street Investment Management: $57.9B under management, 77 holdings, a 0.08% expense ratio, a 1.42% trailing dividend yield.
Portfolio overlap between IBB and XLF
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 XLF: JPM (11.61%), BRK.B (11.25%), V (7.74%), MA (5.87%), BAC (4.94%).
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 | XLF |
|---|---|---|
| 2022 | -13.7% | -10.6% |
| 2023 | +3.8% | +12.0% |
| 2024 | -2.4% | +30.6% |
| 2025 | +28.0% | +14.9% |
| 2026 | +27.4% | +6.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IBB and XLF good diversifiers for each other?
Reasonably. At 0.44, IBB and XLF keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between IBB and XLF?
Using weekly returns as of 2026-08-27: 0.44 over 3 years, with 0.24 over the last year and 0.50 over 5 years.
Is XLF a good diversifier for IBB?
Reasonably. At 0.44, IBB and XLF keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
How much do IBB and XLF overlap?
0% by weight, across 0 common holdings, based on issuer-disclosed portfolios as of 2026-08-26.
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Hubs: IBB correlations · XLF correlations
