IBB vs XLY: Correlation & Overlap
How closely do iShares Biotechnology ETF (IBB) and Consumer Discretionary Select Sector SPDR Fund (XLY) trade together? Their weekly returns over three years give a correlation of 0.47, 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 XLY?
Over the past 3 years, IBB and XLY moved with a correlation of 0.47, which is moderate. Recent behaviour matches the longer record: 0.37 over 1 year against 0.47 over 3. Over 5 years the correlation is 0.54, and the annualized covariance of weekly returns is 192.2 %².
Among the 168 assets we track against IBB, XLY ranks #117 by 3-year correlation. Correlation aside, the last 12 months split them widely, with IBB ahead by 55.5 points (+55.4% versus -0.1%). The rolling one-year correlation moved between 0.41 and 0.73 over the past three years, a moderate range.
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 XLY: side by side
| IBB (iShares Biotechnology ETF) | XLY (Consumer Discretionary Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +55.4% | -0.1% |
| 5-year return | +26.6% | +31.8% |
| Volatility (ann.) | 20.7% | 19.7% |
| Beta vs S&P 500 | 0.81 | 1.15 |
| Max drawdown (3Y) | -24.9% | -26.0% |
| Dividend yield | 0.22% | 0.78% |
| Expense ratio | 0.44% | 0.08% |
| Assets under management | $9.2B | $22.5B |
| 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. XLY is a Consumer Cyclical fund from State Street Investment Management: $22.5B under management, 47 holdings, a 0.08% expense ratio, a 0.78% trailing dividend yield.
Portfolio overlap between IBB and XLY
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 XLY: AMZN (24.32%), TSLA (16.18%), HD (5.54%), MCD (4.11%), BKNG (4.04%).
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 | XLY |
|---|---|---|
| 2022 | -13.7% | -36.3% |
| 2023 | +3.8% | +39.6% |
| 2024 | -2.4% | +26.5% |
| 2025 | +28.0% | +7.4% |
| 2026 | +27.4% | -2.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IBB and XLY good diversifiers for each other?
A fair diversifier. At 0.47, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between IBB and XLY?
Using weekly returns as of 2026-08-27: 0.47 over 3 years, with 0.37 over the last year and 0.54 over 5 years.
Is XLY a good diversifier for IBB?
A fair diversifier. At 0.47, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
How much do IBB and XLY 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-xly.json
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Related comparisons
Hubs: IBB correlations · XLY correlations
