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iShares Nasdaq Biotechnology ETF (IBB) Sharpe Ratio: 1.68

ETF · Currency in USD · Last updated Jun 3, 2026

IBB is a passive ETF by iShares tracking the investment results of the NASDAQ Biotechnology Index. IBB launched on Feb 5, 2001 and has a 0.47% expense ratio.

IBB's Sharpe Ratio of 1.68 indicates that for each unit of volatility, it generates 1.68 units of excess return above the risk-free rate. The ratio is calculated using historical daily returns over the past 12 months (as of Jun 3, 2026).

Sharpe uses total volatility (standard deviation) which includes both upside and downside price movements, making it useful for comparing risk-adjusted returns across different assets.

IBB Sharpe Ratio Rank

IBB Sharpe Ratio Rank: 47.848
Average

IBB ranks above 47.8% of all investments in our database based on Sharpe Ratio over the past 12 months, showing balanced returns relative to total risk taken. Securities are ranked from 0 (worst) to 100 (best).

What moves the rank

  • Strong returns with low total volatility → Higher rank
  • High volatility (both upside and downside) → Lower rank
  • Consistent returns → Higher rank than volatile returns of same magnitude
  • Sharp drawdowns increase volatility → Lower rank

What you can do with this information

  • Returns are proportional to volatility—neither strong nor weak
  • Evaluate whether the volatility profile aligns with your risk tolerance
  • Review higher-ranked alternatives in the same category
  • Monitor rank direction to identify improving or deteriorating trends

IBB Sharpe Ratio Market Positioning

The chart shows IBB's Sharpe Ratio relative to all ETFs on our platform, with color zones indicating percentile rankings. Higher ratios indicate better risk-adjusted returns.

  • Red zone (bottom 25%): 0.90 or lower
  • Yellow zone (middle 50%): 0.90 to 2.51
  • Green zone (top 25%): 2.51 or higher
  • Top 1%: 7.80+
  • Median: 1.77 — half of all investments score higher

How it compares to other similar ETFs

The table compares iShares Nasdaq Biotechnology ETF's Sharpe Ratio with other ETFs in the Health & Biotech Equities category across multiple time periods, showing how IBB's risk-adjusted performance compares to similar funds.

Data shows 1-, 5-, and 10-year periods, plus each fund's all-time average, as of Jun 3, 2026.

SymbolName1Y Sharpe Ratio5Y Sharpe Ratio10Y Sharpe RatioAll Time Sharpe Ratio
BBCVirtus LifeSci Biotech Clinical Trials ETF3.49
LFSCF/m Emerald Life Sciences Innovation ETF2.33
SBIOALPS Medical Breakthroughs ETF2.30
XBISPDR S&P Biotech ETF2.28
IHEiShares U.S. Pharmaceuticals ETF2.28
CANCTema Oncology ETF2.14
IBRNiShares Neuroscience and Healthcare ETF2.09
PJPInvesco Dynamic Pharmaceuticals ETF2.05
GNOMGlobal X Genomics & Biotechnology ETF2.04
FTXHFirst Trust Nasdaq Pharmaceuticals ETF2.04
IBBiShares Nasdaq Biotechnology ETF1.68

S&P 500 Index

How to choose period

Historical Sharpe Ratio

The chart shows IBB's rolling Sharpe ratio over time compared to your chosen benchmark. Rising trends indicate improving returns relative to total volatility, while declining trends may signal deteriorating risk-adjusted performance or increased volatility. Use multiple timeframes to distinguish short-term fluctuations from long-term patterns.

Identify market cycles by observing when IBB consistently outperforms (line above benchmark), underperforms (below benchmark), or aligns with the benchmark.

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Sharpe Ratio Calculator

How does IBB fit in your portfolio?

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