IBB vs XLI: Correlation & Overlap
Measured on weekly returns over the past three years, iShares Biotechnology ETF (IBB) and Industrial Select Sector SPDR Fund (XLI) carry a correlation of 0.52, a moderate link. 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 XLI?
On 3 years of weekly data the IBB/XLI correlation comes out at 0.52, moderate. The link has loosened recently: the 1-year correlation (0.24) runs below the 3-year figure (0.52). The 5-year figure is 0.54, and annualized covariance runs at 168.9 %².
Among the 168 assets we track against IBB, XLI ranks #85 by 3-year correlation. The last year tells two different stories: IBB led by 37.1 percentage points, +55.4% for IBB against +18.3% for XLI. Across three years, the rolling one-year figure varied moderately, from 0.35 to 0.75.
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 XLI: side by side
| IBB (iShares Biotechnology ETF) | XLI (Industrial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +55.4% | +18.3% |
| 5-year return | +26.6% | +84.0% |
| Volatility (ann.) | 20.7% | 15.7% |
| Beta vs S&P 500 | 0.81 | 0.89 |
| Max drawdown (3Y) | -24.9% | -18.5% |
| Dividend yield | 0.22% | 1.15% |
| Expense ratio | 0.44% | 0.08% |
| Assets under management | $9.2B | $32.9B |
| 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. XLI is an Industrials fund from State Street Investment Management: $32.9B under management, 83 holdings, a 0.08% expense ratio, a 1.15% trailing dividend yield.
Portfolio overlap between IBB and XLI
The two portfolios are largely distinct. Weighing the shared positions, 0% of the two funds is identical, spread across 0 common holdings. That shared book is a large part of why the returns line up.
Largest positions held only by IBB: AMGN (8.43%), VRTX (7.89%), GILD (7.10%), REGN (5.68%), MRNA (3.76%). Only by XLI: CAT (6.68%), GE (6.52%), RTX (5.04%), GEV (4.52%), UNP (3.25%).
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 | XLI |
|---|---|---|
| 2022 | -13.7% | -5.6% |
| 2023 | +3.8% | +18.1% |
| 2024 | -2.4% | +17.3% |
| 2025 | +28.0% | +19.3% |
| 2026 | +27.4% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IBB and XLI good diversifiers for each other?
Somewhat, no more. With 0.52 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between IBB and XLI?
As of 2026-08-27, the correlation of weekly returns between IBB and XLI is 0.52 over 3 years, 0.24 over 1 year and 0.54 over 5 years.
Is XLI a good diversifier for IBB?
Somewhat, no more. With 0.52 correlation, most large moves hit both names, and the diversification benefit stays modest.
How much do IBB and XLI overlap?
The two funds share 0 holdings amounting to 0% of weight, per issuer portfolio files dated 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/ibb-vs-xli.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/ibb-vs-xli/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: IBB correlations · XLI correlations
