IBB vs XLP: Correlation & Overlap
How closely do iShares Biotechnology ETF (IBB) and Consumer Staples Select Sector SPDR Fund (XLP) trade together? Their weekly returns over three years give a correlation of 0.30, which is moderate. 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 XLP?
Across a 3-year window, the weekly returns of IBB and XLP correlate at 0.30, moderate. Lately the two have drifted apart, with the 1-year correlation at 0.18 versus 0.30 over 3 years. Stretching to 5 years gives 0.39, with an annualized covariance of 68.5 %².
Among the 168 assets we track against IBB, XLP ranks #155 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months IBB outperformed by 47.1 percentage points (+55.4% for IBB against +8.3% for XLP). The rolling one-year correlation moved between 0.17 and 0.64 over the past three years, a moderate range. Risk is not evenly split, since IBB carries 1.9 times the volatility of the other side.
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 XLP: side by side
| IBB (iShares Biotechnology ETF) | XLP (Consumer Staples Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +55.4% | +8.3% |
| 5-year return | +26.6% | +34.7% |
| Volatility (ann.) | 20.7% | 11.1% |
| Beta vs S&P 500 | 0.81 | 0.23 |
| Max drawdown (3Y) | -24.9% | -9.7% |
| Dividend yield | 0.22% | 2.58% |
| Expense ratio | 0.44% | 0.08% |
| Assets under management | $9.2B | $14.6B |
| 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. On the fund side, XLP sits in the Consumer Defensive category at State Street Investment Management, with $14.6B under management, 35 holdings, a 0.08% expense ratio, a 2.58% trailing dividend yield.
Portfolio overlap between IBB and XLP
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 XLP: WMT (9.62%), COST (8.92%), KO (7.34%), PG (7.10%), PM (6.36%).
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 | XLP |
|---|---|---|
| 2022 | -13.7% | -0.8% |
| 2023 | +3.8% | -0.8% |
| 2024 | -2.4% | +12.2% |
| 2025 | +28.0% | +1.5% |
| 2026 | +27.4% | +10.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IBB and XLP good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.30 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between IBB and XLP?
The IBB/XLP correlation stands at 0.30 on a 3-year window (1 year: 0.18, 5 years: 0.39), computed from weekly returns as of 2026-08-27.
Is XLP a good diversifier for IBB?
Yes, to a useful degree: a correlation of 0.30 leaves real independence between the two, which historically damped combined volatility.
How much do IBB and XLP overlap?
The two funds share 0 holdings amounting to 0% of weight, per issuer portfolio files dated 2026-08-26.
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Hubs: IBB correlations · XLP correlations
