IBB vs XLV: Correlation & Overlap
iShares Biotechnology ETF (IBB) and Health Care Select Sector SPDR Fund (XLV) show a strong relationship: their 3-year correlation of weekly returns is 0.78. Looking through to holdings, 12.4% 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 XLV?
Across a 3-year window, the weekly returns of IBB and XLV correlate at 0.78, strong. Little has changed lately, as the 1-year reading of 0.72 lands near the 3-year figure. Stretching to 5 years gives 0.78, with an annualized covariance of 237.2 %².
Within IBB's tracked universe of 168 assets, XLV comes in at #5 by 3-year correlation. The last year tells two different stories: IBB led by 27.9 percentage points, +55.4% for IBB against +27.5% for XLV. The link looks structural: the rolling one-year correlation barely moved, holding between 0.69 and 0.87.
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 XLV: side by side
| IBB (iShares Biotechnology ETF) | XLV (Health Care Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +55.4% | +27.5% |
| 5-year return | +26.6% | +37.4% |
| Volatility (ann.) | 20.7% | 14.7% |
| Beta vs S&P 500 | 0.81 | 0.42 |
| Max drawdown (3Y) | -24.9% | -17.1% |
| Dividend yield | 0.22% | 1.56% |
| Expense ratio | 0.44% | 0.08% |
| Assets under management | $9.2B | $41.7B |
| Sector / category | ETF · Thematic | Sector ETF |
IBB is a Health fund from iShares: $9.2B under management, 235 holdings, a 0.44% expense ratio, a 0.22% trailing dividend yield. On the fund side, XLV sits in the Health category at State Street Investment Management, with $41.7B under management, 61 holdings, a 0.08% expense ratio, a 1.56% trailing dividend yield.
Portfolio overlap between IBB and XLV
The two portfolios are largely distinct. Weighing the shared positions, 12.4% of the two funds is identical, spread across 9 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in IBB | Weight in XLV |
|---|---|---|
| AMGN | 8.43% | 3.80% |
| GILD | 7.10% | 2.94% |
| VRTX | 7.89% | 2.22% |
| REGN | 5.68% | 1.30% |
| MRNA | 3.76% | 0.84% |
| BIIB | 2.23% | 0.52% |
| INCY | 1.75% | 0.34% |
| CRL | 0.97% | 0.23% |
| TECH | 0.78% | 0.18% |
Largest positions held only by IBB: ARGX (3.76%), NTRA (3.19%), RVMD (2.83%), ILMN (2.34%), ALNY (2.19%). Only by XLV: LLY (15.03%), JNJ (10.38%), ABBV (7.42%), MRK (6.04%), UNH (5.82%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 9 common positions shown.
Year-by-year returns
| Year | IBB | XLV |
|---|---|---|
| 2022 | -13.7% | -2.1% |
| 2023 | +3.8% | +2.1% |
| 2024 | -2.4% | +2.5% |
| 2025 | +28.0% | +14.5% |
| 2026 | +27.4% | +11.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IBB and XLV good diversifiers for each other?
To a limited degree. At 0.78 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between IBB and XLV?
Using weekly returns as of 2026-08-27: 0.78 over 3 years, with 0.72 over the last year and 0.78 over 5 years.
Is XLV a good diversifier for IBB?
To a limited degree. At 0.78 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
How much do IBB and XLV overlap?
The two funds share 9 holdings amounting to 12.4% of weight, per issuer portfolio files dated 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/ibb-vs-xlv.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/ibb-vs-xlv/)
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Hubs: IBB correlations · XLV correlations
