At a glance
IBBQ charges 0.19% a year, below the 0.52% average of the 8 funds most like it (the cheapest of 9). It has $96.4M in assets, the 7th largest of that group; it paid 1.1% of its price in distributions over the past 12 months, quarterly. Over the past year it returned +36.3% with distributions reinvested (S&P 500: +11.5%), 8th of those 9 funds; over three years it returned +26.1% a year. Its ten largest positions make up 44.3% of the fund, out of 256 in all.
The short version
Invesco Nasdaq Biotechnology ETF (IBBQ) holds the stocks in the Nasdaq Biotechnology Index, which tracks biotech and drug companies listed on the Nasdaq Stock Market. Its 0.19% expense ratio is the lowest of nine similar biotech funds and well below the 0.45% charged by the much larger iShares Biotechnology ETF (IBB). The two funds' holdings overlap by about 82%. The drawback is size: IBBQ had about $96 million in assets as of August 31, 2026.
Price history
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IBBQ +36.3% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| IBBQ official prospectus, to Dec 31, 2024 | — | -0.63% | — | — | — | -3.88% |
| IBBQ price data to Oct 27, 2026 | +25.7% | +36.3% | +26.1% | — | — | +16.8% |
- Over the year to Oct 27, 2026, IBBQ returned +36.3%, 8th of 9 among similar funds.
- Its worst full calendar year was 2024 (-0.7%); its best was 2025 (+33.3%).
- The deepest fall in its price history was 23.7% (Sep 19, 2024 to Apr 8, 2025), recovered by Oct 1, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +25.7% | — |
| 2025 | +33.3% | — |
| 2024 | -0.7% | -0.63% |
| 2023 | +4.8% | +4.49% |
| 2022 | — | -10.24% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Not in the price data, which starts Oct 18, 2022 |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.3000 | |
| 2025 | $0.2600 | +8.3% |
| 2024 | $0.2400 | +33.3% |
| 2023 | $0.1800 |
What's inside
As of Aug 31, 2026, the fund held 256 securities; the ten largest made up 44.25% of assets. It also reported 19.96% in a money-market fund, most likely cash collateral from lending out shares rather than uninvested money.
| Holding | Weight | |
|---|---|---|
| Amgen Inc. | 8.68% | |
| Vertex Pharmaceuticals Inc. | 8.27% | |
| Gilead Sciences, Inc. | 7.40% | |
| Regeneron Pharmaceuticals, Inc. | 5.35% | |
| Moderna, Inc. | 3.61% | |
| Revolution Medicines, Inc. | 2.83% | |
| Illumina, Inc. | 2.10% | |
| Alnylam Pharmaceuticals, Inc. | 2.09% | |
| Biogen Inc. | 2.07% | |
| argenx SE | 1.84% | |
| Royalty Pharma PLC | 1.76% | |
| Insmed Inc. | 1.71% | |
| Roivant Sciences Ltd. | 1.61% | |
| Incyte Corp. | 1.60% | |
| United Therapeutics Corp. | 1.41% |
By country
United States 85.54%Netherlands 2.39%United Kingdom 2.31%Ireland 1.67%Bermuda 1.61%By asset type
Stocks 99.93%What changed recently
- Over the three months to Aug 31, 2026, investors added a net $16.3M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +9.62%, -1.72%, +10.47%.
How it works
IBBQ tries to match the results of the Nasdaq Biotechnology Index, before fees. Nasdaq, Inc. builds the index. It includes companies listed on the Nasdaq Stock Market that the Industry Classification Benchmark (ICB) places in the biotechnology or pharmaceuticals subsectors. The ICB is a system that sorts companies into industries. Large, mid-size and small companies can qualify. So can American Depositary Receipts (ADRs), which are US-traded certificates that stand for shares of foreign companies. As of October 31, 2025, the index had 247 members. Their market values ranged from about $34.3 million to $255.6 billion.
The index is weighted by modified market capitalization. That means bigger companies get bigger weights, with some adjustments. The fund uses "full replication": it generally owns every stock in the index in the same proportions. As of August 31, 2026, it held 256 stocks. The largest were Amgen (8.7%), Vertex Pharmaceuticals (8.3%), Gilead Sciences (7.4%) and Regeneron Pharmaceuticals (5.3%). The top 10 made up about 44% of assets.
The fund puts at least 90% of its assets in index stocks. It generally buys or sells a stock only when the index adds or drops it, even if that stock is doing poorly. The fund is "non-diversified," so it can put more money into a few companies. Its portfolio turnover was 17%. The August 2026 report also listed cash of about 20% of assets. This appears to be collateral from lending shares to other investors, not uninvested money.
What it really costs
- IBBQ charges 0.19% a year, versus an average of 0.52% for the similar funds below (1st of 9, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $19 in the first year and $242 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| IBBQ | $19 | $61 | $107 | $242 |
In a retirement portfolio
IBBQ holds a single industry, so its results depend heavily on drug approvals, patents and a handful of large holdings.
IBBQ could add focused biotech exposure next to a broad core fund, but it is a concentrated bet. Its price history here begins October 18, 2022, so it doesn't show how the fund did in 2008, in the 2020 crash or for most of the 2022 bear market. The prospectus does show a 10.24% loss in 2022, its worst calendar year, and an 11.69% drop in the first quarter of that year. Its deepest fall in the available price data was 23.7%, from September 19, 2024, to April 8, 2025. It got back to its old peak by October 1, 2025, about 5.8 months after the low. Anyone forced to sell during a slump like that would lock in losses. Income is small: the trailing yield was 1.1% as of October 27, 2026, paid quarterly. The cost is low. In the SEC's standard example, $10,000 would pay $242 in fees over 10 years. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want broad biotech exposure for 0.19% a year, the lowest expense ratio among nine similar funds compared.
- People comfortable with one industry, where Amgen, Vertex and Gilead together made up about 24% of assets as of August 31, 2026.
- Those adding a small satellite position to a diversified core who can accept volatility of about 21% a year, measured over three years.
Look elsewhere if
- Investors who need meaningful income, since the trailing yield was just 1.1% as of October 27, 2026.
- Those who prefer a large, heavily traded fund. IBBQ had about $96 million in assets, against about $9.1 billion for IBB.
- People who can't stomach drops like the 23.7% fall from September 2024 to April 2025, or risks like patent expirations and drug approvals.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| IBBQ this fund | — | 0.19% | $96.4M | +36.3% | +26.1% |
| IBB iShares Biotechnology ETF | 82% | 0.45% | $9.09B | +35.3% | +23.9% |
| BBH VanEck Biotech ETF | 53% | 0.35% | $395.6M | +41.0% | +20.9% |
| XBI SPDR S&P Biotech ETF | 39% | 0.35% | $10.73B | +39.3% | +34.4% |
| PBE Invesco Biotechnology & Genome ETF | 37% | 0.58% | $281.9M | +38.6% | +25.2% |
| FTXH First Trust Nasdaq Pharmaceuticals ETF | 36% | 0.6% | $36.2M | +46.9% | +23.4% |
| BBP Virtus LifeSci Biotech Products ETF | 35% | 0.79% | $98.5M | +40.3% | +32.3% |
| FBT First Trust NYSE Arca Biotechnology Index F… | 30% | 0.56% | $2.81B | +43.6% | +27.7% |
Questions investors ask
What's the difference between IBBQ and IBB?
The biggest difference is cost. IBBQ charges 0.19% a year and the iShares Biotechnology ETF (IBB) charges 0.45%. Their holdings overlap by about 82%. IBB is far larger: about $9.1 billion in assets as of June 30, 2026, against about $96 million for IBBQ as of August 31, 2026. As of October 27, 2026, IBBQ's price return was 36.3% over one year and 26.1% a year over three years. IBB's were 35.3% and 23.9%.
Does IBBQ pay dividends?
Yes, IBBQ pays dividends quarterly, but the income is small. Over the 12 months to October 27, 2026, it paid about $0.39 per share, a trailing yield of 1.1%. That yield comes from the biotech and pharmaceutical stocks the fund owns. So it can go up or down as those companies change their payouts and as the fund's share price moves.
What are IBBQ's top holdings?
As of August 31, 2026, IBBQ's largest holdings were Amgen (8.7%), Vertex Pharmaceuticals (8.3%), Gilead Sciences (7.4%), Regeneron Pharmaceuticals (5.3%) and Moderna (3.6%). Revolution Medicines, Illumina, Alnylam Pharmaceuticals, Biogen and argenx rounded out the top 10. Together, the top 10 made up about 44% of the fund. In total it held 256 stocks, and about 86% of its assets were in US companies.
Is IBBQ good for retirement?
IBBQ is a single-industry fund, so it fits better as a small satellite holding than as a retirement core. It costs 0.19% a year, but it is volatile: about 21% a year over three years as of October 27, 2026. Between September 2024 and April 2025 it fell 23.7%. Its yield was only 1.1%. Its prospectus warns that patents, regulation and competition can hit biotech stocks hard.
How has IBBQ performed since launch?
IBBQ's record is mixed. It launched June 11, 2021. The prospectus shows an average annual return of -3.88% from launch through December 31, 2024, with calendar-year returns of -10.24% in 2022, 4.49% in 2023 and -0.63% in 2024. Since then, results have been much stronger. Its price return was 33.3% in 2025 and 25.7% for 2026 through October 27. The one-year return was 36.3% as of that date.