IBB vs XLRE: Correlation & Overlap
How closely do iShares Biotechnology ETF (IBB) and Real Estate Select Sector SPDR Fund (XLRE) trade together? Their weekly returns over three years give a correlation of 0.50, which is moderate. 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 XLRE?
On 3 years of weekly data the IBB/XLRE correlation comes out at 0.50, moderate. The link has loosened recently: the 1-year correlation (0.22) runs below the 3-year figure (0.50). The 5-year figure is 0.57, and annualized covariance runs at 174.3 %².
Within IBB's tracked universe of 168 assets, XLRE comes in at #98 by 3-year correlation. Correlation aside, the last 12 months split them widely, with IBB ahead by 45.9 points (+55.4% versus +9.5%). This link changes with the market regime, having swung between 0.24 and 0.81 on a rolling one-year basis.
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 XLRE: side by side
| IBB (iShares Biotechnology ETF) | XLRE (Real Estate Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +55.4% | +9.5% |
| 5-year return | +26.6% | +11.4% |
| Volatility (ann.) | 20.7% | 16.7% |
| Beta vs S&P 500 | 0.81 | 0.57 |
| Max drawdown (3Y) | -24.9% | -16.6% |
| Dividend yield | 0.22% | 3.12% |
| Expense ratio | 0.44% | 0.08% |
| Assets under management | $9.2B | $8.6B |
| 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, XLRE sits in the Real Estate category at State Street Investment Management, with $8.6B under management, 31 holdings, a 0.08% expense ratio, a 3.12% trailing dividend yield.
Portfolio overlap between IBB and XLRE
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 XLRE: WELL (11.43%), PLD (9.06%), EQIX (7.14%), AMT (5.49%), DLR (5.01%).
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 | XLRE |
|---|---|---|
| 2022 | -13.7% | -26.2% |
| 2023 | +3.8% | +12.4% |
| 2024 | -2.4% | +5.1% |
| 2025 | +28.0% | +2.6% |
| 2026 | +27.4% | +12.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IBB and XLRE good diversifiers for each other?
Somewhat, no more. With 0.50 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between IBB and XLRE?
The IBB/XLRE correlation stands at 0.50 on a 3-year window (1 year: 0.22, 5 years: 0.57), computed from weekly returns as of 2026-08-27.
Is XLRE a good diversifier for IBB?
Somewhat, no more. With 0.50 correlation, most large moves hit both names, and the diversification benefit stays modest.
How much do IBB and XLRE overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 0% by weight over 0 common positions.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/ibb-vs-xlre.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/ibb-vs-xlre/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: IBB correlations · XLRE correlations
