What are biotechnology ETFs?
Biotechnology companies develop medicines from biology, such as proteins, antibodies, genes and cells. Many are still testing drugs in clinical trials and earn little revenue, while others already have approved products on the market. Among the 15 funds analyzed, Revolution Medicines is the most widely held, appearing in 8. Regeneron and Illumina appear in 7; Biogen, Alnylam and Moderna in 6; and Vertex, Amgen and Gilead Sciences in 5.
The funds differ mainly in how they spread the money. XBI, from State Street, tracks an S&P index drawn from the biotech segment of the US market. It holds 152 stocks, with just 13.32% in its top 10. iShares' IBB and Invesco's IBBQ hold about 250 stocks but put roughly 8% each in Vertex and Amgen. VanEck's BBH is the most concentrated: 24 stocks, 70.28% in the top 10 and 15.25% in Amgen. FBT and PBE hold about 30 each. CANC, LFSC and FMED aim for long-term growth rather than tracking an index. Four funds are trading tools: LABU and BIB seek 3x and 2x the daily return of their indexes, while LABD and BIS seek -3x and -2x.
Costs vary widely. The median expense ratio (the yearly fee taken from fund assets) is 0.54%, or 0.50% for the funds without leverage. IBBQ is the cheapest at 0.19%, followed by BBP at 0.34% and XBI and BBH at 0.35%. LABD is the most expensive at 1.07%.
The money is concentrated, too. Of roughly $24.7 billion in these funds, 95.1% sits in the five largest: XBI, IBB, FBT, LABU and BBH. XBI and IBB alone hold about $10.7 billion and $9.1 billion.
Biotechnology ETF holdings: the stocks most funds own
The stocks that show up most often among the largest positions of the 15 biggest biotechnology ETFs with holdings reports, from their latest N-PORT filings.
| Stock | Funds holding it | Typical weight |
|---|---|---|
| Revolution Medicines Inc | 8 of 15 | 2.78% |
| Regeneron Pharmaceuticals, Inc. | 7 of 15 | 4.91% |
| Illumina, Inc. | 7 of 15 | 2.82% |
| Biogen, Inc. | 6 of 15 | 2.47% |
| Alnylam Pharmaceuticals, Inc. | 6 of 15 | 2.33% |
| Moderna Inc | 6 of 15 | 1.98% |
| Vertex Pharmaceuticals, Inc. | 5 of 15 | 8.08% |
| Amgen, Inc. | 5 of 15 | 7.83% |
| Gilead Sciences, Inc. | 5 of 15 | 6.84% |
| Natera, Inc. | 5 of 15 | 3.3% |
| Argenx SE | 5 of 15 | 3.2% |
| United Therapeutics Corp. | 5 of 15 | 2.83% |
Typical weight is the median share of each fund’s assets in the stock, among the funds that hold it in their 25 largest positions.
The largest biotechnology ETFs, side by side
Swipe the table to see all 5 funds.
| XBI | IBB | FBT | BBH | PBE | |
|---|---|---|---|---|---|
| Net assets | $10.73B | $9.09B | $2.81B | $395.6M | $281.9M |
| Expense ratio | 0.35% | 0.44% | 0.55% | 0.35% | 0.59% |
| Holdings | 152 | 248 | 31 | 24 | 30 |
| In the 10 largest | 13.32% | 44.74% | 43.2% | 70.28% | 46.2% |
| Biggest holding | Apogee Therapeutics Inc (1.49%) | Vertex Pharmaceuticals, Inc. (8.08%) | Corcept Therapeutics Inc (5.6%) | Amgen Inc (15.25%) | Regeneron Pharmaceuticals, Inc. (5.47%) |
| Yield | 0.36% | 0.16% | 0% | 0.38% | 1.32% |
| 1-year return | +39.3% | +35.3% | +43.6% | +41.0% | +38.6% |
| 3 years, a year | +34.4% | +23.9% | +27.7% | +20.9% | +25.2% |
| 5 years, a year | +5.0% | +6.4% | +11.4% | +5.4% | +6.8% |
| Worst drop, past year | -14.9% | -9.6% | -14.3% | -10.6% | -11.7% |
| Launched | 2006 | 2001 | 2006 | 2011 | 2005 |
The largest ordinary funds by net assets (leveraged and inverse funds are listed further down). Holdings from each fund’s latest N-PORT report; returns include reinvested distributions, as of Oct 27, 2026.
Head to head
XBI vs IBB
The two largest biotech ETFs are built differently. XBI spreads its money across 152 stocks, with 13.32% in its top 10 and no holding above 1.49%. IBB holds 248 stocks but puts 44.74% in its top 10, led by Vertex at 8.08%. The two share 41.6% of their assets. XBI costs 0.35% a year and IBB 0.44%. In the year to October 27, 2026, XBI gained 39.3% and IBB 35.3%, but XBI's worst drop was deeper, at 14.9% versus 9.6%. XBI may suit investors wanting a wide spread of companies; IBB, those comfortable with more weight in the biggest names.
IBB vs BBH
These two have 58.8% of their assets in common, the highest overlap of any pair compared here, because both lean on Amgen, Vertex, Gilead and Regeneron. The difference is degree. BBH holds just 24 stocks, with 70.28% in its top 10 and 15.25% in Amgen; IBB holds 248, with 44.74% in its top 10. BBH costs 0.35% a year against IBB's 0.44%. In the year to October 27, 2026, BBH gained 41% and IBB 35.3%, with worst drops of 10.6% and 9.6%. BBH may suit investors wanting a short list of big companies; IBB, a wider net.
XBI vs FBT
These two share just 18.4% of their assets. XBI spreads money across 152 stocks, with 13.32% in its top 10. FBT tracks the NYSE Arca Biotechnology Index and holds only 31 stocks, with 43.2% in its top 10 and Corcept Therapeutics largest at 5.6%. FBT costs 0.55% a year, versus 0.35% for XBI. In the year to October 27, 2026, FBT gained 43.6% and XBI 39.3%, with similar worst drops of 14.3% and 14.9%. Over five years, FBT returned 11.4% to XBI's 5%. FBT may suit investors comfortable with a tighter list; XBI, those wanting breadth.
How much do the largest biotechnology ETFs overlap?
Owning two funds that hold the same stocks adds little diversification. Overlap here is the share of assets two funds have in common: for each stock both own, the smaller of its two weights, added up.
| Funds | Assets in common | Shared holdings | |
|---|---|---|---|
| IBB and BBH | 58.8% | 21 | |
| FBT and PBE | 48% | 17 | |
| XBI and IBB | 41.6% | 124 | |
| BBH and PBE | 41.4% | 13 | |
| FBT and BBH | 41% | 16 | |
| IBB and FBT | 40.2% | 28 | |
| IBB and PBE | 38.9% | 25 | |
| XBI and PBE | 18.9% | 22 | |
| XBI and FBT | 18.4% | 19 | |
| XBI and BBH | 14.7% | 14 |
From each fund’s full holdings in its latest N-PORT report.
How have biotechnology ETFs performed?
The five largest ordinary funds: growth from the start of the range, distributions reinvested. The dashed gray line is the S&P 500 (SPY).
Best-performing biotechnology ETFs over the past year
| # | Fund | Net assets | Cost | 1 mo | YTD | 1 yr | 3 yr |
|---|---|---|---|---|---|---|---|
| 1 | FBT First Trust NYSE Arca Biotechnology Index Fund | $2.81B | 0.55% | +0.3% | +32.5% | +43.6% | +27.7% |
| 2 | BBH VanEck Biotech ETF | $395.6M | 0.35% | +1.8% | +32.0% | +41.0% | +20.9% |
| 3 | BBP Virtus LifeSci Biotech Products ETF | $98.5M | 0.34% | +0.2% | +31.2% | +40.3% | +32.3% |
| 4 | XBI SPDR S&P Biotech ETF | $10.73B | 0.35% | -0.1% | +27.1% | +39.3% | +34.4% |
| 5 | PBE Invesco Biotechnology & Genome ETF | $281.9M | 0.59% | +3.6% | +24.0% | +38.6% | +25.2% |
| 6 | BBC Virtus LifeSci Biotech Clinical Trials ETF | $46.4M | 0.65% | -5.0% | +11.2% | +36.6% | +37.8% |
| 7 | IBBQ Invesco Nasdaq Biotechnology ETF | $96.4M | 0.19% | +1.1% | +25.7% | +36.3% | +26.1% |
| 8 | LFSC F/M Emerald Life Sciences Innovation ETF | $126.3M | 0.54% | -3.0% | +17.8% | +35.8% | — |
| 9 | CANC Tema Oncology ETF | $176.1M | 0.75% | +0.5% | +20.3% | +35.4% | +26.7% |
| 10 | IBB iShares Biotechnology ETF | $9.09B | 0.44% | +1.2% | +25.8% | +35.3% | +23.9% |
Funds with at least $25 million in net assets; leveraged and inverse funds left out. Past returns don’t predict future returns.
How biotechnology ETFs did in past market crashes
| Fund | 2008 crash | 2020 crash | 2022 drop |
|---|---|---|---|
| XBI | not yet launched | not yet launched | -31.8% |
| IBB | -31.5% | -21.0% | -21.7% |
| FBT | -35.8% | -25.7% | -18.0% |
| BBH | not yet launched | -20.8% | -22.9% |
| PBE | not yet launched | not yet launched | -16.6% |
| S&P 500 (SPY) | -55.2% | -33.7% | -24.5% |
Total return from the stock market’s peak to its low in each fall, distributions reinvested.
What drives biotechnology ETFs?
Biotech share prices often move on news from inside the industry more than on the wider economy. A clinical trial result or a regulator's decision on a new drug can send a small company's shares sharply up or down. Many smaller developers have no product revenue yet, so they depend on raising money from investors. When interest rates rise, that money gets harder to find and far-off profits are worth less, which weighs heavily on their shares. Larger firms with approved drugs depend more on sales, drug-pricing rules and how long their patents last, and takeovers by big drugmakers can lift prices across the group.
Because people need medicine in any economy, biotech funds have often fallen less than the S&P 500 in broad crashes. In the 2008 financial crisis, IBB lost 31.5% and FBT 35.8%, against 55.2% for the S&P 500. In the 2020 COVID crash, BBH lost 20.8%, IBB 21% and FBT 25.7%, against 33.7%. The 2022 bear market, when interest rates rose fast, was different: XBI, spread across many developers, fell 31.8%, more than the S&P 500's 24.5%, while PBE fell 16.6% and FBT 18%.
Biotechnology ETFs with the lowest expense ratios
| # | Fund | Expense ratio | On $10,000 | Net assets |
|---|---|---|---|---|
| 1 | IBBQ Invesco Nasdaq Biotechnology ETF | 0.19% | $19 a year | $96.4M |
| 2 | BBP Virtus LifeSci Biotech Products ETF | 0.34% | $34 a year | $98.5M |
| 3 | XBI SPDR S&P Biotech ETF | 0.35% | $35 a year | $10.73B |
| 4 | BBH VanEck Biotech ETF | 0.35% | $35 a year | $395.6M |
| 5 | IBB iShares Biotechnology ETF | 0.44% | $44 a year | $9.09B |
Ordinary funds with at least $10 million in net assets. The median ordinary biotechnology ETF charges 0.5% a year; leveraged and inverse funds usually charge more.
Do biotechnology ETFs pay dividends?
8 of the 14 ordinary biotechnology ETFs with a page here paid distributions over the last 12 months, with a median yield of 0.38%.
| Highest yields | Yield | Net assets |
|---|---|---|
| BBC Virtus LifeSci Biotech Clinical Trials ETF | 1.54% | $46.4M |
| PBE Invesco Biotechnology & Genome ETF | 1.32% | $281.9M |
| IBBQ Invesco Nasdaq Biotechnology ETF | 1.1% | $96.4M |
| BBH VanEck Biotech ETF | 0.38% | $395.6M |
| XBI SPDR S&P Biotech ETF | 0.36% | $10.73B |
Distributions over the last 12 months divided by the price; funds with at least $25 million in net assets.
How to choose a biotechnology ETF
- What each fund charges per year. IBBQ is cheapest at 0.19%, then BBP at 0.34% and XBI and BBH at 0.35%. IBB charges 0.44%, FBT 0.55% and PBE 0.59%. Leveraged and inverse funds cost the most, up to 1.07% for LABD.
- Concentrated or spread out. BBH puts 70.28% of its money in its top 10 holdings, including 15.25% in Amgen. XBI has just 13.32% in its top 10 and BBC 11.76%, so no single stock dominates. IBB sits between, at 44.74%.
- How each fund picks its stocks. Most track indexes: IBBQ the Nasdaq Biotechnology Index, FBT the NYSE Arca Biotechnology Index, BBH a 25-stock MVIS index and XBI an S&P biotech index. CANC, LFSC and FMED aim for long-term growth without naming an index.
- US biotech only, or a wider net. IBB and BBH track indexes of US-listed biotech stocks, and XBI a US market index. CANC focuses on cancer and also owns large drugmakers Eli Lilly, Roche and Novartis, while FMED holds lab-tools makers Thermo Fisher and Danaher.
- Fund size and staying power. XBI holds about $10.7 billion and IBB $9.1 billion, while IBBQ, the cheapest, has about $96 million and BBC about $46 million. Smaller funds can cost more to trade and are more likely to close.
- Leveraged and inverse funds reset daily. LABU and LABD seek 3x and -3x an S&P biotech index's daily move; BIB and BIS, 2x and -2x a Nasdaq one. BIB gained 67.2% in the year to October 27, 2026, less than twice IBBQ's 36.3% on that index.
What are the risks of biotechnology ETFs?
- One trial result can sink a stock. Biotech shares can lose much of their value on a failed trial or a rejected drug. Funds with big single positions feel it most: LFSC has 8.71% in Travere Therapeutics and CANC 7.73% in Revolution Medicines.
- The same giants appear again and again. Vertex, Amgen and Gilead each sit in 5 of the 15 funds analyzed, at median weights of about 7% to 8%. Owning IBB and BBH together adds little variety: 58.8% of their assets overlap.
- Steep drops even in strong years. In the year to October 27, 2026, SBIO gained 25% but fell as much as 29.2% along the way, and BBC fell 30.2%. Their volatility, a measure of how much prices swing, was 32.3% and 37.5%.
- Rising rates hurt cash-hungry developers. Many small biotechs rely on raising money, which gets harder when rates rise. In the 2022 bear market, XBI, which spreads money across many such firms, fell 31.8%, more than the S&P 500's 24.5% drop.
- Leveraged and inverse funds can erode quickly. LABD, which aims for -3x daily, lost 74.4% in the year to October 27, 2026. LABU gained 91.2% over the same year but fell as much as 41.8% along the way. Daily resets make long holds unpredictable.
Leveraged and inverse biotechnology ETFs (2x and 3x)
These funds aim for a multiple, or the opposite, of one day’s return, and reset every day. Held for longer than a day, their results can drift far from that multiple, especially when prices swing. They are trading tools, not long-term holdings. Why leveraged ETFs decay →
List of all biotechnology ETFs, by size
| # | Fund | Net assets | Cost | Yield | YTD | 1 yr | 5 yr |
|---|---|---|---|---|---|---|---|
| 1 | XBI SPDR S&P Biotech ETF | $10.73B | 0.35% | 0.36% | +27.1% | +39.3% | +5.0% |
| 2 | IBB iShares Biotechnology ETF | $9.09B | 0.44% | 0.16% | +25.8% | +35.3% | +6.4% |
| 3 | FBT First Trust NYSE Arca Biotechnology Index Fund | $2.81B | 0.55% | 0% | +32.5% | +43.6% | +11.4% |
| 4 | LABU Direxion Daily S&P Biotech Bull 3x Shares Leveraged | $494.4M | 0.96% | 0.38% | +52.0% | +91.2% | -24.4% |
| 5 | BBH VanEck Biotech ETF | $395.6M | 0.35% | 0.38% | +32.0% | +41.0% | +5.4% |
| 6 | PBE Invesco Biotechnology & Genome ETF | $281.9M | 0.59% | 1.32% | +24.0% | +38.6% | +6.8% |
| 7 | CANC Tema Oncology ETF | $176.1M | 0.75% | 0.05% | +20.3% | +35.4% | — |
| 8 | SBIO ALPS Medical Breakthroughs ETF | $161.8M | 0.5% | 0% | +8.3% | +25.0% | +5.0% |
| 9 | LFSC F/M Emerald Life Sciences Innovation ETF | $126.3M | 0.54% | — | +17.8% | +35.8% | — |
| 10 | BIB ProShares Ultra Nasdaq Biotechnology Leveraged | $101.4M | 0.95% | 0.19% | +44.6% | +67.2% | +6.1% |
Questions investors ask about biotechnology ETFs
What is the largest biotech ETF?
XBI, the SPDR S&P Biotech ETF from State Street, is the largest, with about $10.7 billion in net assets. IBB, the iShares Biotechnology ETF, is close behind at about $9.1 billion. FBT, LABU and BBH round out the five largest, which together hold 95.1% of the money in the funds covered here. XBI spreads its money across 152 stocks, while IBB leans more on big names such as Vertex and Amgen.
What is the cheapest biotech ETF?
IBBQ, the Invesco Nasdaq Biotechnology ETF, has the lowest expense ratio at 0.19% a year. It tracks the Nasdaq Biotechnology Index and holds 256 stocks, led by Amgen and Vertex. It is small, with about $96 million in assets. Next come BBP at 0.34% and XBI and BBH at 0.35%. IBB costs 0.44%, and the median across all the funds is 0.54%.
XBI vs IBB: what's the difference?
Both own US biotech stocks, but XBI spreads its money thinly while IBB leans on the giants. XBI's top 10 holdings make up 13.32% of the fund; IBB's make up 44.74%, led by Vertex at 8.08%. They share 41.6% of their assets. XBI costs 0.35% a year to IBB's 0.44%. In the year to October 27, 2026, XBI gained 39.3% and IBB 35.3%, though XBI swung more along the way.
Do biotech ETFs pay dividends?
Some do, but the payouts are small. Eight of the 14 funds with yield data paid a dividend, and the median yield was 0.38%. The highest yields were BBC at 1.54%, PBE at 1.32% and IBBQ at 1.1%. XBI yielded 0.36% and IBB 0.16%, while FBT paid nothing. Many biotech companies put their cash into research rather than paying it out, so these funds offer little income.
Which biotech ETFs hold Amgen?
Amgen appears in 5 of the 15 funds analyzed, and it is a large holding in each. It is BBH's largest position at 15.25% and IBBQ's at 8.68%. IBB holds 7.83%, PBE 5.22% and the leveraged BIB 4.72%. Funds that spread money thinly, such as XBI, where no holding tops 1.49%, give any one company far less weight.
How many biotech ETFs are there?
This guide covers 18 US-listed biotechnology ETFs with about $24.7 billion in combined assets. Four are leveraged or inverse trading funds: LABU, LABD, BIB and BIS. The rest are ordinary stock funds, from large index trackers such as XBI, IBB and FBT to small, newer funds such as CANC and LFSC, which launched in 2023 and 2024.
What are LABU and LABD?
LABU and LABD are Direxion funds that aim for 3x and -3x the daily move of an S&P biotech index; ProShares' BIB and BIS aim for 2x and -2x the Nasdaq Biotechnology Index. They reset every day, so over longer periods compounding pulls results away from those multiples. In the year to October 27, 2026, LABD lost 74.4% and BIS 49.8%, while LABU gained 91.2% but fell as much as 41.8% on the way. They are built for short-term trading.
Is biotechnology a good investment?
It depends on how much risk an investor can accept. In the year to October 27, 2026, the median one-year return across these funds was 36.3%, but five-year returns were far lower: 5% for XBI and 6.4% for IBB. IBB and FBT fell less than the S&P 500 in the 2008 and 2020 crashes, yet XBI dropped 31.8% in the 2022 bear market. These funds may suit long-term investors who accept sharp swings within a diversified portfolio.
Is there a Vanguard, Fidelity or Schwab biotechnology ETF?
Yes. Fidelity offers one: FMED (Fidelity Disruptive Medicine ETF). Vanguard and Schwab don’t have a biotechnology ETF.
