IBB vs. FTXH

Last updated Jun 24, 2026

IBB (iShares Nasdaq Biotechnology ETF) and FTXH (First Trust Nasdaq Pharmaceuticals ETF) are both Health & Biotech Equities funds - IBB tracks the NASDAQ Biotechnology Index while FTXH tracks the Nasdaq U.S. Smart Pharmaceuticals Index. Both are passively managed. Over the past 5 years, IBB returned 2.21%/yr vs 8.45%/yr for FTXH. A 0.68 correlation means they provide meaningful diversification when combined. IBB charges 0.47%/yr vs 0.60%/yr for FTXH.

Performance

IBB vs. FTXH - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Nasdaq Biotechnology ETF (IBB) and First Trust Nasdaq Pharmaceuticals ETF (FTXH). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, IBB achieves a 5.61% return, which is significantly lower than FTXH's 10.44% return.

IBB

• 1D: 0.62%
• 1M: 5.52%
• YTD: 5.61%
• 6M: 3.57%
• 1Y: 42.90%
• 3Y*: 11.80%
• 5Y*: 2.21%
• 10Y*: 8.21%

FTXH

• 1D: 1.37%
• 1M: 4.15%
• YTD: 10.44%
• 6M: 9.18%
• 1Y: 44.59%
• 3Y*: 12.98%
• 5Y*: 8.45%
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

IBB vs. FTXH - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IBB iShares Nasdaq Biotechnology ETF	5.61%	27.98%	-2.41%	3.76%	-13.69%	0.95%	26.01%	25.42%	-9.53%	21.08%
FTXH First Trust Nasdaq Pharmaceuticals ETF	10.44%	24.15%	2.98%	-1.41%	2.55%	6.14%	11.73%	22.13%	-9.51%	19.44%

Correlation

The correlation between IBB and FTXH is 0.86, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.86
Correlation (3Y) Calculated over the trailing 3-year period	0.84
Correlation (5Y) Calculated over the trailing 5-year period	0.77
Correlation (All Time) Calculated using the full available price history since Sep 22, 2016	0.68

The correlation between IBB and FTXH shifts across timeframes, from 0.68 (all time) to 0.86 (1 year), reflecting how their relationship changes across market environments.

IBB vs. FTXH - Sectors Allocation Comparison

Sectors	IBB	FTXH
Healthcare	100.0%	100.0%
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	-
Industrials	-	-
Real Estate	-	-
Technology	-	-
Utilities	-	-

Return for Risk

IBB vs. FTXH — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

IBB

IBB Risk / Return Rank: 71
IBB Sharpe Ratio Rank: 68
IBB Sortino Ratio Rank: 68
IBB Omega Ratio Rank: 60
IBB Calmar Ratio Rank: 85
IBB Martin Ratio Rank: 75

FTXH

FTXH Risk / Return Rank: 87
FTXH Sharpe Ratio Rank: 86
FTXH Sortino Ratio Rank: 89
FTXH Omega Ratio Rank: 80
FTXH Calmar Ratio Rank: 93
FTXH Martin Ratio Rank: 87

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

IBB vs. FTXH - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Nasdaq Biotechnology ETF (IBB) and First Trust Nasdaq Pharmaceuticals ETF (FTXH). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	IBB	FTXH	Difference
Sharpe ratio: Return per unit of total volatility	2.12	2.61	-0.49
Sortino ratio: Return per unit of downside risk	2.96	3.81	-0.85
Omega ratio: Gain probability vs. loss probability	1.35	1.44	-0.09
Calmar ratio: Return relative to maximum drawdown	4.47	6.00	-1.52
Martin ratio: Return relative to average drawdown	13.77	17.65	-3.89

IBB vs. FTXH - Sharpe Ratio Comparison

The current IBB Sharpe Ratio is 2.12, which is comparable to the FTXH Sharpe Ratio of 2.61. The chart below compares the historical Sharpe Ratios of IBB and FTXH, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

IBB vs. FTXH - Drawdown Comparison

The maximum IBB drawdown since its inception was -62.85%, which is greater than FTXH's maximum drawdown of -32.11%. Use the drawdown chart below to compare losses from any high point for IBB and FTXH.

Drawdown Indicators

	IBB	FTXH	Difference
Max Drawdown Largest peak-to-trough decline	-62.85%	-32.11%	-30.74%
Max Drawdown (1Y) Largest decline over 1 year	-9.63%	-7.47%	-2.16%
Max Drawdown (3Y) Largest decline over 3 years	-24.85%	-19.51%	-5.34%
Max Drawdown (5Y) Largest decline over 5 years	-39.82%	-19.51%	-20.31%
Max Drawdown (10Y) Largest decline over 10 years	-39.82%	—	—
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-21.14%	-5.81%	-15.33%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.12%	2.53%	+0.59%

Volatility

IBB vs. FTXH - Volatility Comparison

iShares Nasdaq Biotechnology ETF (IBB) has a higher volatility of 6.95% compared to First Trust Nasdaq Pharmaceuticals ETF (FTXH) at 5.42%. This indicates that IBB's price experiences larger fluctuations and is considered to be riskier than FTXH based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IBB	FTXH	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.95%	5.42%	+1.53%
Volatility (6M) Calculated over the trailing 6-month period	15.98%	12.04%	+3.94%
Volatility (1Y) Calculated over the trailing 1-year period	20.34%	17.18%	+3.16%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.03%	16.37%	+5.66%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.17%	18.42%	+4.75%

IBB vs. FTXH - Expense Ratio Comparison

IBB has a 0.47% expense ratio, which is lower than FTXH's 0.60% expense ratio.

Dividends

IBB vs. FTXH - Dividend Comparison

IBB's dividend yield for the trailing twelve months is around 0.23%, less than FTXH's 1.16% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FTXH First Trust Nasdaq Pharmaceuticals ETF	1.16%	1.41%	1.66%	1.55%	1.11%	1.03%	0.82%	0.67%	0.91%	2.18%	0.19%	0.00%
IBB iShares Nasdaq Biotechnology ETF	0.23%	0.23%	0.29%	0.26%	0.31%	0.21%	0.21%	0.33%	0.20%	0.30%	0.19%	0.03%

Frequently Asked Questions

Can I hold both IBB and FTXH in my portfolio?

IBB and FTXH have a correlation of 0.86, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IBB or FTXH?

IBB has higher volatility (6.95%) compared to FTXH (5.42%). In terms of maximum drawdown, IBB dropped -62.85% vs FTXH's -32.11%.

Which ETF is better, IBB or FTXH?

On 5-year performance, FTXH leads with 8.45% vs 2.21% for IBB. On fees, IBB is cheaper at 0.47% per year. On volatility, FTXH has been the lower-risk option at 5.42%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IBB or FTXH?

Over the 5-year period, FTXH has performed better with a 8.45% return vs 2.21%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IBB or FTXH?

IBB is cheaper with a 0.47% expense ratio, compared with 0.60% for FTXH.

Which ETF pays a higher dividend yield, IBB or FTXH?

FTXH has the higher dividend yield at 1.16%, compared with 0.23% for IBB.

What is the main difference between IBB and FTXH?

IBB tracks NASDAQ Biotechnology Index, while FTXH tracks Nasdaq U.S. Smart Pharmaceuticals Index. They also come from different issuers: iShares and First Trust. Their fees differ too: 0.47% for IBB and 0.60% for FTXH.

Which has better risk-adjusted returns?

FTXH currently has the higher Sharpe Ratio (2.61 vs 2.12), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.