ETF Comparison

IBB vs XBI: Which Is the Better Pick in 2026?

A head-to-head comparison of iShares Biotechnology ETF and SPDR S&P Biotech ETF covering yield, cost, risk, and income potential.

Updated October 16, 2026

How these figures are calculated: methodology.

Best for

IBBInvestors who want broad equity exposure.
XBIInvestors who want broad equity exposure.

Jump to the side-by-side numbers

Visual comparison

Key metrics

Projected income on $10K

Projections assume the current yield and share price remain constant. Actual results will vary.

Total returns

100% reinvested · ex-date convention. Period returns use this fixed assumption, independent of chart settings. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year.

IBB has lagged XBI over the trailing twelve months, posting a 31.92% total return against 34.31%. The lead holds up over 10 years too: XBI has compounded at 9.40% a year, against 8.85% for IBB. IBB has been the steadier holding, though — annualized volatility of 21.4% against 28.1% for XBI. Figures are total returns: price change plus every distribution reinvested.

Total return and risk statistics by fund. Each row is one fund; each column is one period or statistic.
Symbol	YTD cumulative	1Y cumulative	3Y annualized	5Y annualized	10Y annualized	Since Feb 2006	Volatility	Sharpe	Sortino	Max drawdown
IBB	19.79%	31.92%	18.48%	5.42%	8.85%	10.50%	21.4%	0.60	0.86	-24.9%
XBI	18.48%	34.31%	27.41%	3.03%	9.40%	11.38%	28.1%	0.72	1.03	-33.0%

Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of October 16, 2026. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year. “Since Feb 2006” measures every fund from February 6, 2006 — the start of shared available history — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the trailing 3 years. Sharpe and Sortino divide the annualized return in excess of the risk-free rate by, respectively, that volatility and the downside deviation (both over the trailing 3 years) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.

Side-by-side snapshot

Side-by-side snapshot. Each row is one metric; each column is one fund.
Metric	IBB	XBI
Full name	iShares Biotechnology ETF	SPDR S&P Biotech ETF
Issuer	iShares	State Street
Underlying index	ICE Biotechnology Index	S&P Biotechnology Select Industry Index
Last Close	$201.99 as of October 16, 2026	$144.32 as of October 16, 2026
Distribution rate	0.02%	0.07%
Trailing 12-month yield	0.17%	0.38%
Distribution Safety Score™	79	72
Safety-Adjusted Yield	0.02%	0.05%
Expense ratio	0.44%	0.35%
AUM	$10.5B	$9.90B
Distribution frequency	Quarterly	Quarterly
Objective	Tracks the ICE Biotechnology Index of US-listed biotechnology companies.	Tracks the S&P Biotechnology Select Industry Index using equal-weight methodology.
Asset class	Equity	Equity
Inception date	02/05/2001	01/31/2006
Beta	0.7	1.09
Last dividend	$0.011	$0.138
Ex-dividend date	09/15/2026	09/21/2026

Bottom lineIBB and XBI are both for investors who want broad equity exposure — so strategy isn't the deciding factor here. Fees and payouts are close too, so it comes down to which your broker offers commission-free and any share-price or tax-lot preference.

Model this comparison:

Compare in my portfolio Forecast income Save to watchlist

Income calculator

See how much monthly income a hypothetical investment would generate in each ETF at current yields.

iShares

ETFs467

Total AUM$4.64T

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

iShares, operated by BlackRock, is one of the largest and most established ETF providers globally, known for offering broad, liquid index-tracking funds across nearly all asset classes and investment styles. The lineup encompasses a comprehensive range of strategies including core equity and bond exposure, dividend and income-focused funds, covered call strategies, ESG and thematic investments, factor-based approaches, alternatives, commodities, and municipal bonds, serving both individual and institutional investors. With numerous popular ticker symbols and extensive diversification across geographies, sectors, and investment objectives, iShares provides one of the market's widest selections of ETFs for building diversified portfolios.

See our curated list of related YouTube videos on IBB.

See all ETFs from iShares

State Street

ETFs186

Total AUM$2.15T

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

State Street Global Advisors (SSGA) is one of the largest ETF providers globally, known for its flagship SPDR suite of exchange-traded products that serve both institutional and retail investors across a broad range of asset classes. Their 88-fund lineup spans diverse strategies including sector exposure (Select Sector SPDR), income generation (Income and Select Sector SPDR Premium Income families), commodities (including the widely-held GLD gold ETF), bonds, ESG-focused investments, and thematic allocations, with popular tickers like DIA (Diamonds Trust), FEZ (Eurozone exposure), and JNK (high-yield bonds) among their most recognized funds. The issuer is characterized by its comprehensive coverage across multiple market segments and its emphasis on both traditional index-based products and specialized strategies like covered call income funds and factor-based investing.

See our curated list of related YouTube videos on XBI.

See all ETFs from State Street

Want to go deeper?

Add these ETFs to a sample portfolio and forecast your dividend income over 5+ years — free to start, no credit card.

Compare in my portfolio Forecast income Save to watchlist

Quick verdict

IBB (iShares Biotechnology ETF) and XBI (SPDR S&P Biotech ETF) are both quarterly-pay dividend ETFs, but they take different approaches.

XBI has paid the higher yield over the past 12 months, 0.38% vs 0.17% for IBB. We compare trailing 12-month yields here because IBB's latest distribution annualizes to 0.02% against 0.17% actually paid over the past 12 months, and XBI's latest distribution annualizes to 0.07% against 0.38% actually paid over the past 12 months, so annualizing a single payment would misstate their income.

XBI is cheaper with an expense ratio of 0.35% compared to 0.44%.

They have different reference exposures: IBB is linked to ICE Biotechnology Index while XBI is linked to S&P Biotechnology Select Industry Index, which means their performance drivers differ.

IBB is the larger fund by assets ($10.5B), but assets alone do not establish trading costs or liquidity.

Who should choose each?

Choose IBB

iShares Biotechnology ETF

Want broad equity exposure.
Prefer lower volatility — a beta of 0.7 vs 1.1 for XBI.

Choose XBI

SPDR S&P Biotech ETF

Want broad equity exposure.
Want to keep costs low — a 0.35% expense ratio vs 0.44% for IBB.

Not sure? Use the income calculator and snapshot above to weigh these trade-offs against your own goals.

Still deciding? Track IBB & XBI for free

Create a free Dividend Vision account to keep them on a watchlist, get notified when they declare dividends, and see how much income they would add to your portfolio.

Add to my watchlist See what a free account includes

Deep dive

Yield & income

On a $10,000 investment, IBB would generate roughly $0.50 cash per distribution, while XBI would produce $1.75 cash per distribution, at current distribution rates. Both pay quarterly distributions.

IBB yield0.02%

XBI yield0.07%

Cash diff on $10K$1.25

Cost & efficiency

Over 10 years on $10,000, IBB would cost approximately $440 in fees vs $350 for XBI (simplified, not compounded). The $90.00 difference may be offset by yield or performance.

IBB ER0.44%

XBI ER0.35%

Strategy & risk

IBB tracks ICE Biotechnology Index, while XBI tracks S&P Biotechnology Select Industry Index. Beta is 0.7 for IBB and 1.09 for XBI, making IBB the less volatile of the two by this measure.

IBB beta0.7

XBI beta1.09

Fund details

IBB is managed by iShares (launched 02/05/2001) with $10.5B in assets. XBI is managed by State Street (launched 01/31/2006) with $9.90B in assets.

IBB AUM$10.5B

XBI AUM$9.90B

Ready to act?

Open in Comparator Model in portfolio See pricing

Frequently asked questions

What is the current distribution rate for IBB and XBI?

IBB currently distributes 0.02% and XBI 0.07%, based on fund data updated October 2026. Distribution rate moves with both the payout and the share price, so check the as-of date before relying on either figure.

Is IBB or XBI better for dividend income?

It depends on your goals. XBI has paid the higher trailing 12-month yield (0.38% vs 0.17%). We compare trailing 12-month yields here because IBB's latest distribution annualizes to 0.02% against 0.17% actually paid over the past 12 months, and XBI's latest distribution annualizes to 0.07% against 0.38% actually paid over the past 12 months, so annualizing a single payment would misstate their income. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.

What is the difference between IBB and XBI?

IBB (iShares Biotechnology ETF) tracks ICE Biotechnology Index, while XBI (SPDR S&P Biotech ETF) tracks S&P Biotechnology Select Industry Index. They are issued by iShares and State Street respectively.

Can I hold both IBB and XBI?

Yes — nothing prevents holding both. Whether the combination actually diversifies depends on how much the underlying exposures overlap, which isn't fully measurable from the data on this page; review each security's holdings, sector, and strategy before treating them as complementary.

Is IBB or XBI safer?

By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — IBB scores 79, XBI scores 72, so IBB's payout currently looks the more resilient of the two. IBB has also shown lower price volatility (beta 0.70 vs 1.09 for XBI). No score makes an investment risk-free — treat this as a screening signal, not a guarantee.

Which has lower fees, IBB or XBI?

IBB has an expense ratio of 0.44% while XBI charges 0.35%. Lower fees mean more of your investment returns stay in your pocket over time.

How much income does $10,000 in IBB vs XBI generate?

At current rates, $10,000 in IBB would generate roughly $0.50 cash per distribution ($2.00 annually). The same in XBI would produce about $1.75 cash per distribution ($7.00 annually).

Which has performed better historically, IBB or XBI?

More comparisons to explore

Popular comparisons

IBB vs XBI — at a glance

Generated October 17, 2026.

Overview

IBB and XBI are both biotechnology-focused ETFs tracking US-listed biotech companies, but they differ in weighting methodology and index construction. The equal-weight approach in XBI tilts the fund toward smaller positions and higher turnover compared to IBB's cap-weighted design.

How they differ

The most significant difference is weighting strategy: IBB's market-cap weighting concentrates capital in larger biotech firms, while XBI's equal-weight structure gives identical portfolio weight to each constituent regardless of market capitalization. This drives a secondary difference in volatility and correlation to broad markets—XBI carries a beta of 1.09 versus IBB's 0.7, meaning XBI amplifies biotech sector swings more sharply. Both funds are substantial, with XBI holding $9.90B and IBB holding $10.5B, and both pay minimal distributions (0.02% and 0.07% respectively), typical for growth-oriented biotech.

Who each is best for

IBB: Fits investors seeking lower volatility exposure to the biotech sector, with a preference for index-weight concentration in established, larger-cap names and lighter reinvestment of small quarterly distributions.

XBI: Designed for investors comfortable with higher sector volatility and willing to accept equal-weight rebalancing drag in exchange for tilted exposure to smaller and mid-cap biotech companies and a modestly lower fee burden.

Key risks to know

Concentration within biotech sector: Both funds are single-industry plays with no geographic or sector diversification, meaning regulatory headwinds affecting drug approvals, pricing policy, or patent cliffs ripple across the entire holding at once.

Equal-weight rebalancing drag in XBI: Equal-weighting requires frequent rebalancing to re-equalize positions, which can incur trading costs and tax leakage not present in IBB's buy-and-hold cap-weighted structure; this friction may offset XBI's lower expense ratio over longer holding periods.

Volatility mismatch with broader markets: IBB's lower beta (0.7) suggests it may underperform in strong equity rallies but cushion sharper downturns; XBI's beta of 1.09 amplifies both directions, creating asymmetric downside risk during biotech selloffs.

Biotech-specific execution and patent risk: Individual holdings face clinical trial failures, regulatory rejection, and patent expiration events that can trigger sharp single-stock declines; diversification within the sector offers only partial insulation.

Bottom line

If you want lower volatility and market-cap alignment with larger biotech leaders, IBB's longer history and 0.7 beta appeal; if you accept higher sector swings in exchange for smaller-cap exposure and a 0.09% lower fee, XBI's equal-weight tilt and $9.90B asset base merit review. Both are legitimate sector vehicles—the choice hinges on volatility tolerance and whether you view equal-weight rebalancing as a feature or a cost. Past performance does not predict future results.

AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.

Learn the method

The metrics behind this comparison, explained in the Academy.

Still deciding? Compare them against your own portfolio

See how each ETF fits alongside your real holdings — forecast future income, analyze overlap, and gauge risk. Start a free 7-day Dividend Vision trial and make the call with your full portfolio in view.

Start Free Open in Comparator Browse Screener

These comparisons follow the Dividend Vision methodology.