SCHG vs. IBBQ

Last updated Jun 16, 2026

SCHG (Schwab U.S. Large-Cap Growth ETF) and IBBQ (Invesco Nasdaq Biotechnology ETF) are both exchange-traded funds - SCHG is a Large Cap Growth Equities fund tracking the Dow Jones U.S. Large-Cap Growth Total Stock Market Index, while IBBQ is a Health & Biotech Equities fund tracking the NASDAQ / Biotechnology. Both are passively managed. Over the past 5 years, SCHG returned 14.85%/yr vs 4.49%/yr for IBBQ. A 0.54 correlation means they provide meaningful diversification when combined. SCHG charges 0.04%/yr vs 0.00%/yr for IBBQ.

Performance

SCHG vs. IBBQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab U.S. Large-Cap Growth ETF (SCHG) and Invesco Nasdaq Biotechnology ETF (IBBQ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both stocks are quite close, with SCHG having a 5.03% return and IBBQ slightly lower at 4.83%.

SCHG

• 1D: 2.39%
• 1M: -0.12%
• YTD: 5.03%
• 6M: 5.98%
• 1Y: 23.20%
• 3Y*: 23.27%
• 5Y*: 14.85%
• 10Y*: 18.85%

IBBQ

• 1D: 0.54%
• 1M: 2.51%
• YTD: 4.83%
• 6M: 4.79%
• 1Y: 40.36%
• 3Y*: 13.02%
• 5Y*: 4.49%
• 10Y*: —

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

SCHG vs. IBBQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
SCHG Schwab U.S. Large-Cap Growth ETF	5.03%	17.50%	34.95%	50.10%	-31.80%	17.69%
IBBQ Invesco Nasdaq Biotechnology ETF	4.83%	33.32%	-0.63%	4.73%	-10.41%	-6.24%

Correlation

The correlation between SCHG and IBBQ is 0.41, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.41
Correlation (3Y) Calculated over the trailing 3-year period	0.44
Correlation (5Y) Calculated over the trailing 5-year period	0.54
Correlation (All Time) Calculated using the full available price history since Jun 11, 2021	0.54

The correlation between SCHG and IBBQ shifts across timeframes, from 0.41 (1 year) to 0.54 (all time), reflecting how their relationship changes across market environments.

SCHG vs. IBBQ - Sectors Allocation Comparison

Sectors	SCHG	IBBQ
Technology	46.7%	-
Communication Services	15.3%	-
Consumer Cyclical	12.4%	-
Healthcare	8.4%	99.9%
Financial Services	6.6%	0.1%
Industrials	6.0%	-
Consumer Defensive	1.6%	-
Basic Materials	1.3%	-
Energy	0.7%	-
Real Estate	0.5%	-
Utilities	0.4%	-

Return for Risk

SCHG vs. IBBQ — Risk / Return Rank

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

SCHG

SCHG Risk / Return Rank: 40
SCHG Sharpe Ratio Rank: 46
SCHG Sortino Ratio Rank: 43
SCHG Omega Ratio Rank: 44
SCHG Calmar Ratio Rank: 32
SCHG Martin Ratio Rank: 34

IBBQ

IBBQ Risk / Return Rank: 74
IBBQ Sharpe Ratio Rank: 68
IBBQ Sortino Ratio Rank: 69
IBBQ Omega Ratio Rank: 61
IBBQ Calmar Ratio Rank: 89
IBBQ Martin Ratio Rank: 84

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.

SCHG vs. IBBQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab U.S. Large-Cap Growth ETF (SCHG) and Invesco Nasdaq Biotechnology ETF (IBBQ). 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.

	SCHG	IBBQ	Difference
Sharpe ratio: Return per unit of total volatility	1.45	2.02	-0.57
Sortino ratio: Return per unit of downside risk	1.98	2.85	-0.87
Omega ratio: Gain probability vs. loss probability	1.26	1.33	-0.08
Calmar ratio: Return relative to maximum drawdown	1.42	4.86	-3.44
Martin ratio: Return relative to average drawdown	4.68	15.49	-10.80

SCHG vs. IBBQ - Sharpe Ratio Comparison

The current SCHG Sharpe Ratio is 1.45, which is comparable to the IBBQ Sharpe Ratio of 2.02. The chart below compares the historical Sharpe Ratios of SCHG and IBBQ, 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

SCHG vs. IBBQ - Drawdown Comparison

The maximum SCHG drawdown since its inception was -34.59%, smaller than the maximum IBBQ drawdown of -37.94%. Use the drawdown chart below to compare losses from any high point for SCHG and IBBQ.

Drawdown Indicators

	SCHG	IBBQ	Difference
Max Drawdown Largest peak-to-trough decline	-34.59%	-37.94%	+3.35%
Max Drawdown (1Y) Largest decline over 1 year	-16.41%	-8.34%	-8.07%
Max Drawdown (3Y) Largest decline over 3 years	-23.39%	-23.66%	+0.27%
Max Drawdown (5Y) Largest decline over 5 years	-34.59%	-37.94%	+3.35%
Max Drawdown (10Y) Largest decline over 10 years	-34.59%	—	—
Current Drawdown Current decline from peak	-3.06%	-2.45%	-0.61%
Average Drawdown Average peak-to-trough decline	-5.20%	-16.73%	+11.53%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.97%	2.62%	+2.35%

Volatility

SCHG vs. IBBQ - Volatility Comparison

The current volatility for Schwab U.S. Large-Cap Growth ETF (SCHG) is 5.59%, while Invesco Nasdaq Biotechnology ETF (IBBQ) has a volatility of 7.73%. This indicates that SCHG experiences smaller price fluctuations and is considered to be less risky than IBBQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SCHG	IBBQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.59%	7.73%	-2.14%
Volatility (6M) Calculated over the trailing 6-month period	12.52%	15.61%	-3.09%
Volatility (1Y) Calculated over the trailing 1-year period	16.09%	20.08%	-3.99%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.35%	21.90%	+0.45%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.60%	21.89%	-0.29%

SCHG vs. IBBQ - Expense Ratio Comparison

SCHG has a 0.04% expense ratio, which is higher than IBBQ's 0.00% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

SCHG vs. IBBQ - Dividend Comparison

SCHG's dividend yield for the trailing twelve months is around 0.37%, less than IBBQ's 0.84% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IBBQ Invesco Nasdaq Biotechnology ETF	0.84%	0.90%	1.14%	0.81%	0.76%	0.63%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
SCHG Schwab U.S. Large-Cap Growth ETF	0.37%	0.36%	0.39%	0.46%	0.55%	0.42%	0.52%	0.82%	1.27%	1.01%	1.04%	1.22%

Frequently Asked Questions

Can I hold both SCHG and IBBQ in my portfolio?

SCHG and IBBQ have a correlation of 0.41, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SCHG or IBBQ?

IBBQ has higher volatility (7.73%) compared to SCHG (5.59%). In terms of maximum drawdown, SCHG dropped -34.59% vs IBBQ's -37.94%.

Which ETF is better, SCHG or IBBQ?

On 5-year performance, SCHG leads with 14.85% vs 4.49% for IBBQ. On fees, IBBQ is cheaper at 0.00% per year. On volatility, SCHG has been the lower-risk option at 5.59%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SCHG or IBBQ?

Over the 5-year period, SCHG has performed better with a 14.85% return vs 4.49%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SCHG or IBBQ?

IBBQ is cheaper with a 0.00% expense ratio, compared with 0.04% for SCHG.

Which ETF pays a higher dividend yield, SCHG or IBBQ?

IBBQ has the higher dividend yield at 0.84%, compared with 0.37% for SCHG.

What is the main difference between SCHG and IBBQ?

SCHG is categorized as Large Cap Growth Equities, while IBBQ is Health & Biotech Equities. SCHG tracks Dow Jones U.S. Large-Cap Growth Total Stock Market Index, while IBBQ tracks NASDAQ / Biotechnology. They also come from different issuers: Charles Schwab and Invesco. Their fees differ too: 0.04% for SCHG and 0.00% for IBBQ.

Which has better risk-adjusted returns?

IBBQ currently has the higher Sharpe Ratio (2.02 vs 1.45), 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.