ETF Comparison

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

A head-to-head comparison of iShares Biotechnology ETF and State Street Health Care Select Sector SPDR ETF covering yield, cost, risk, and income potential.

Data updated September 4, 2026

Best for

IBBInvestors who want broad equity exposure.
XLVInvestors who want higher current income (1.53% vs 0.05% for IBB).

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Visual comparison

Key metrics

Projected income on $10K

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

Total returns

IBB has outpaced XLV over the trailing twelve months, posting a 51.37% total return against 27.41%. The picture flips over 10 years, though — XLV has compounded at 10.77% a year, ahead of IBB at 8.67%. XLV has been the steadier holding, though — annualized volatility of 14.7% against 20.9% for IBB. 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	1Y	3Y	5Y	10Y	Since Feb 2001	Volatility	Sharpe	Sortino	Max drawdown
IBB	25.51%	51.37%	18.60%	4.08%	8.67%	7.64%	20.9%	0.60	0.87	-24.9%
XLV	11.19%	27.41%	10.90%	6.32%	10.77%	8.84%	14.7%	0.40	0.58	-17.1%

Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of September 4, 2026. YTD and 1Y are cumulative; windows of one year or longer are annualized. “Since Feb 2001” measures every fund from February 9, 2001 — the youngest fund's first trading day — 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	XLV
Full name	iShares Biotechnology ETF	State Street Health Care Select Sector SPDR ETF
Issuer	iShares	State Street
Underlying index	ICE Biotechnology Index	Health Care Select Sector Index
Last Close	$211.92 as of September 4, 2026	$171.45 as of September 4, 2026
Distribution yield	0.05%	1.53%
Distribution Safety Score™	55	100
Safety-Adjusted Yield	0.03%	1.53%
Expense ratio	0.44%	0.08%
AUM	$10.6B	$44.5B
Distribution frequency	Quarterly	Quarterly
Objective	Tracks the ICE Biotechnology Index of US-listed biotechnology companies.	Provide exposure to the fund's underlying index or strategy per issuer materials.
Asset class	Equity	Equity
Inception date	02/05/2001	12/16/1998
Beta	0.7	0.51
Last dividend	$0.024	$0.656
Ex-dividend date	06/15/2026	06/22/2026

Bottom lineChoose IBB if you want broad equity exposure. Choose XLV if you want higher current income (1.53% vs 0.05% for IBB).

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Income calculator

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

iShares

ETFs466

Total AUM$4642B

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

iShares is one of the largest ETF providers globally, known for offering a broad, diversified lineup of exchange-traded funds across multiple asset classes and investment strategies. The company operates 215 funds spanning 15 distinct families, including popular offerings in dividend income, covered call strategies, bonds, equities, ESG-focused investments, and factor-based approaches, with widely-held tickers like AGG (bond), ACWI (global equity), and AOA (allocation). iShares is characterized by its comprehensive fund ecosystem that serves both core portfolio holdings and specialized investment strategies, making it a prominent player for investors seeking both traditional and alternative income-generating ETF solutions.

See our curated list of related YouTube videos on IBB.

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State Street

ETFs179

Total AUM$2124B

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 XLV.

See all State Street ETFs

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Quick verdict

IBB (iShares Biotechnology ETF) and XLV (State Street Health Care Select Sector SPDR ETF) are both quarterly-pay dividend ETFs, but they take different approaches.

XLV offers the higher yield at 1.53% vs 0.05% for IBB. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

XLV is cheaper with an expense ratio of 0.08% compared to 0.44%.

They have different reference exposures: IBB is linked to ICE Biotechnology Index while XLV is linked to Health Care Select Sector Index, which means their performance drivers differ.

XLV is the larger fund by assets ($44.5B), which generally means tighter spreads and better liquidity.

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Deep dive

Yield & income

On a $10,000 investment, IBB would generate roughly $0.42/month, while XLV would produce $12.75/month, at current distribution rates. Both pay quarterly distributions.

IBB yield0.05%

XLV yield1.53%

Monthly diff on $10K$12.33

Cost & efficiency

Over 10 years on $10,000, IBB would cost approximately $440 in fees vs $80 for XLV (simplified, not compounded). The $360.00 difference may be offset by yield or performance.

IBB ER0.44%

XLV ER0.08%

Strategy & risk

IBB tracks ICE Biotechnology Index, while XLV tracks Health Care Select Sector Index with an index approach. Beta is 0.7 for IBB and 0.51 for XLV, making XLV the less volatile of the two by this measure.

IBB beta0.7

XLV beta0.51

Fund details

IBB is managed by iShares (launched 02/05/2001) with $10.6B in assets. XLV is managed by State Street (launched 12/16/1998) with $44.5B in assets.

IBB AUM$10.6B

XLV AUM$44.5B

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Frequently asked questions

What is the current distribution yield for IBB and XLV?

IBB currently distributes 0.05% and XLV 1.53%, based on fund data updated September 2026. Distribution yield moves with both the payout and the share price, so check the as-of date before relying on either figure.

Is IBB or XLV better for dividend income?

It depends on your goals. XLV currently offers the higher distribution yield, which means more income per dollar invested. 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 XLV?

IBB (iShares Biotechnology ETF) tracks ICE Biotechnology Index, while XLV (State Street Health Care Select Sector SPDR ETF) tracks Health Care Select Sector Index with an index approach. They are issued by iShares and State Street respectively.

Can I hold both IBB and XLV?

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 XLV safer?

By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — XLV scores 100, IBB scores 55, so XLV's payout currently looks the more resilient of the two. XLV has also shown lower price volatility (beta 0.51 vs 0.70 for IBB). No score makes an investment risk-free — treat this as a screening signal, not a guarantee.

Which has lower fees, IBB or XLV?

IBB has an expense ratio of 0.44% while XLV charges 0.08%. Lower fees mean more of your investment returns stay in your pocket over time.

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

At current rates, $10,000 in IBB would generate roughly $0.42 per month ($5.00 annually). The same in XLV would produce about $12.75 per month ($153.00 annually).

Which has performed better historically, IBB or XLV?

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IBB vs XLV — at a glance

Generated August 29, 2026.

Overview

IBB and XLV are both broad equity ETFs with healthcare exposure, but they target different slices of the sector. The key distinction: IBB is a concentrated sector play; XLV is diversified across the full healthcare economy.

How they differ

IBB focuses exclusively on biotechnology, a subset of healthcare that tends to be higher-growth but more volatile. XLV casts a much wider net, including large pharma, medical device makers, hospital operators, and health insurers—creating a more stable, diversified portfolio. This structural difference shows in their distributions: XLV yields 1.53% versus IBB's 0.05%, reflecting the income orientation of mature pharma and healthcare services holdings in XLV versus biotech's growth and reinvestment focus. XLV is cheaper to own, with an expense ratio of 0.08% compared to IBB's 0.44%. On risk, XLV has a beta of 0.51 while IBB's is 0.7—both lower than the broad market, but IBB carries more sector-specific volatility. XLV also commands $44.5B in assets versus IBB's $10.6B.

Who each is best for

IBB: Fits investors who want concentrated exposure to biotechnology innovation and are comfortable with higher volatility and negligible near-term income in exchange for potential long-term capital appreciation in drug discovery and development.

XLV: Fits investors seeking broad healthcare sector exposure with a blend of growth (biotech, devices) and income (pharma dividends, healthcare services), combined with lower overall volatility and steady distributions.

Key risks to know

Biotech concentration and volatility (IBB): Single-sector focus means IBB can swing sharply on clinical trial results, regulatory decisions (FDA approvals or rejections), and investor sentiment shifts in biotech—risks that are smoothed in XLV's diversified healthcare basket.

Pharma patent cliff and regulatory exposure (both): Large pharmaceutical holdings in both funds face patent expirations and generic competition. XLV's broader mix cushions this; IBB's smaller, less established companies may lack the cash reserves to weather it.

Healthcare services and insurance earnings risk (XLV): XLV's exposure to hospital operators and health insurers introduces earnings sensitivity to healthcare utilization, reimbursement rates, and medical cost inflation—a category absent from IBB.

Lower income yield (IBB): The 0.05% distribution rate leaves little room for tax-efficient income generation, making IBB unsuitable for investors prioritizing current yield.

Bottom line

If you want pure biotech growth exposure and can tolerate sector-specific volatility, IBB's focused strategy stands out. If you need healthcare sector exposure with diversification, income, and lower costs, XLV's broader portfolio and 1.53% yield make it the more balanced choice. Past performance does not guarantee future results.

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

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