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IBB vs. XLV
Performance
Return for Risk
Drawdowns
Volatility
Dividends

IBB vs. XLV

Last updated Jun 23, 2026

IBB (iShares Nasdaq Biotechnology ETF) and XLV (State Street Health Care Select Sector SPDR ETF) are both Health & Biotech Equities funds - IBB tracks the NASDAQ Biotechnology Index while XLV tracks the Health Care Select Sector Index. Both are passively managed. Over the past 10 years, IBB returned 8.14%/yr vs 9.86%/yr for XLV. A 0.72 correlation means they provide meaningful diversification when combined. IBB charges 0.47%/yr vs 0.08%/yr for XLV.

Performance

IBB vs. XLV - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Nasdaq Biotechnology ETF (IBB) and State Street Health Care Select Sector SPDR ETF (XLV). The values are adjusted to include any dividend payments, if applicable.

Loading charts...

Returns By Period

In the year-to-date period, IBB achieves a 4.97% return, which is significantly higher than XLV's -2.23% return. Over the past 10 years, IBB has underperformed XLV with an annualized return of 8.14%, while XLV has yielded a comparatively higher 9.86% annualized return.

IBB

1D
1.94%
1M
4.88%
YTD
4.97%
6M
2.54%
1Y
41.38%
3Y*
11.58%
5Y*
2.25%
10Y*
8.14%

XLV

1D
0.88%
1M
0.56%
YTD
-2.23%
6M
-2.55%
1Y
15.69%
3Y*
6.13%
5Y*
5.50%
10Y*
9.86%
*Multi-year figures are annualized to reflect compound growth (CAGR)

IBB vs. XLV - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
IBB
iShares Nasdaq Biotechnology ETF		4.97%27.98%-2.41%3.76%-13.69%0.95%26.01%25.42%-9.53%21.08%
XLV
State Street Health Care Select Sector SPDR ETF		-2.23%14.50%2.47%2.07%-2.08%26.04%13.30%20.45%6.28%21.77%

Correlation

The correlation between IBB and XLV is 0.69, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.69

Correlation (3Y)
Calculated over the trailing 3-year period

0.70

Correlation (5Y)
Calculated over the trailing 5-year period

0.70

Correlation (10Y)
Calculated over the trailing 10-year period

0.72

Correlation (All Time)
Calculated using the full available price history since Feb 12, 2001

0.72

The correlation between IBB and XLV has been stable across timeframes, ranging from 0.69 to 0.72 - a consistent structural relationship.

IBB vs. XLV - Sectors Allocation Comparison

Sectors
IBB
XLV

Healthcare

100.0%
100.0%

Basic Materials

-

-

Communication Services

-

-

Consumer Cyclical

-

-

Consumer Defensive

-

-

Energy

-

-

Financial Services

-

-

Industrials

-

-

Real Estate

-

-

Technology

-

-

Utilities

-

-

Healthcare

IBB
100.0%
XLV
100.0%

Basic Materials

IBB

-

XLV

-

Communication Services

IBB

-

XLV

-

Consumer Cyclical

IBB

-

XLV

-

Consumer Defensive

IBB

-

XLV

-

Energy

IBB

-

XLV

-

Financial Services

IBB

-

XLV

-

Industrials

IBB

-

XLV

-

Real Estate

IBB

-

XLV

-

Technology

IBB

-

XLV

-

Utilities

IBB

-

XLV

-

Compare stocks, funds, or ETFs

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iShares Nasdaq Biotechnology ETF

State Street Health Care Select Sector SPDR ETF

Often compared with IBB:
IBB vs. XBIIBB vs. ARKGIBB vs. IBBQIBB vs. BBHIBB vs. SPYIBB vs. FBIOXIBB vs. QQQ
Often compared with XLV:
XLV vs. VHTXLV vs. SPYXLV vs. XLFXLV vs. IXJXLV vs. VOOXLV vs. FHLCXLV vs. IHI

Return for Risk

IBB vs. XLV — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
IBB
IBB Risk / Return Rank: 6969
Overall Rank
IBB Sharpe Ratio Rank: 6464
Sharpe Ratio Rank
IBB Sortino Ratio Rank: 6565
Sortino Ratio Rank
IBB Omega Ratio Rank: 5757
Omega Ratio Rank
IBB Calmar Ratio Rank: 8484
Calmar Ratio Rank
IBB Martin Ratio Rank: 7373
Martin Ratio Rank
XLV
XLV Risk / Return Rank: 3030
Overall Rank
XLV Sharpe Ratio Rank: 3030
Sharpe Ratio Rank
XLV Sortino Ratio Rank: 3232
Sortino Ratio Rank
XLV Omega Ratio Rank: 2828
Omega Ratio Rank
XLV Calmar Ratio Rank: 3131
Calmar Ratio Rank
XLV Martin Ratio Rank: 2727
Martin Ratio Rank
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. XLV - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Nasdaq Biotechnology ETF (IBB) and State Street Health Care Select Sector SPDR ETF (XLV). 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.

IBBXLVDifference
Sharpe ratioReturn per unit of total volatility
2.05
1.05

+1.00

Sortino ratioReturn per unit of downside risk
2.88
1.67

+1.21

Omega ratioGain probability vs. loss probability

1.34

1.19

+0.15

Calmar ratioReturn relative to maximum drawdown

4.32

1.51

+2.81

Martin ratioReturn relative to average drawdown

13.28

3.56

+9.72

IBB vs. XLV - Sharpe Ratio Comparison

The current IBB Sharpe Ratio is 2.05, which is higher than the XLV Sharpe Ratio of 1.05. The chart below compares the historical Sharpe Ratios of IBB and XLV, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Drawdowns

IBB vs. XLV - Drawdown Comparison

The maximum IBB drawdown since its inception was -62.85%, which is greater than XLV's maximum drawdown of -39.17%. Use the drawdown chart below to compare losses from any high point for IBB and XLV.

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Drawdown Indicators

IBBXLVDifference

Max Drawdown

Largest peak-to-trough decline

-62.85%

-39.17%

-23.68%

Max Drawdown (1Y)

Largest decline over 1 year

-9.63%

-10.47%

+0.84%

Max Drawdown (3Y)

Largest decline over 3 years

-24.85%

-17.11%

-7.74%

Max Drawdown (5Y)

Largest decline over 5 years

-39.82%

-17.11%

-22.71%

Max Drawdown (10Y)

Largest decline over 10 years

-39.82%

-28.40%

-11.42%

Current Drawdown

Current decline from peak

-0.27%

-5.53%

+5.26%

Average Drawdown

Average peak-to-trough decline

-21.15%

-7.12%

-14.03%

Ulcer Index

Depth and duration of drawdowns from previous peaks

3.12%

4.42%

-1.30%

Volatility

IBB vs. XLV - Volatility Comparison

iShares Nasdaq Biotechnology ETF (IBB) has a higher volatility of 6.96% compared to State Street Health Care Select Sector SPDR ETF (XLV) at 5.14%. This indicates that IBB's price experiences larger fluctuations and is considered to be riskier than XLV based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

IBBXLVDifference

Volatility (1M)

Calculated over the trailing 1-month period

6.96%

5.14%

+1.82%

Volatility (6M)

Calculated over the trailing 6-month period

15.99%

10.58%

+5.41%

Volatility (1Y)

Calculated over the trailing 1-year period

20.37%

15.06%

+5.31%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

22.03%

14.76%

+7.27%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

23.22%

16.59%

+6.63%

IBB vs. XLV - Expense Ratio Comparison

IBB has a 0.47% expense ratio, which is higher than XLV's 0.08% expense ratio.

Dividends

IBB vs. XLV - Dividend Comparison

IBB's dividend yield for the trailing twelve months is around 0.23%, less than XLV's 2.11% yield.

PositionTTM20252024202320222021202020192018201720162015
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%
XLV
State Street Health Care Select Sector SPDR ETF		2.11%1.60%1.67%1.59%1.47%1.33%1.49%2.17%1.57%1.47%1.60%1.43%

Frequently Asked Questions

IBB and XLV have a correlation of 0.69, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

IBB has higher volatility (6.96%) compared to XLV (5.14%). In terms of maximum drawdown, IBB dropped -62.85% vs XLV's -39.17%.

On 10-year performance, XLV leads with 9.86% vs 8.14% for IBB. On fees, XLV is cheaper at 0.08% per year. On volatility, XLV has been the lower-risk option at 5.14%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, XLV has performed better with a 9.86% return vs 8.14%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

XLV is cheaper with a 0.08% expense ratio, compared with 0.47% for IBB.

XLV has the higher dividend yield at 2.11%, compared with 0.23% for IBB.

IBB tracks NASDAQ Biotechnology Index, while XLV tracks Health Care Select Sector Index. They also come from different issuers: iShares and State Street. Their fees differ too: 0.47% for IBB and 0.08% for XLV.

IBB currently has the higher Sharpe Ratio (2.05 vs 1.05), 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.

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