What are expense ratios and why are they important?

An expense ratio is the annual fee a fund charges to cover operational costs. Lower fees can improve returns over time as less of the investment is paid out in costs. In this comparison, IBB's expense ratio is 0.44%, while IBBQ's is 0.19%, presenting an absolute difference of 0.25 percentage points.

How do I interpret dividend yields for ETFs?

A dividend yield estimates the annual income relative to the fund's price. For these ETFs, IBB has a yield of 0.16%, compared with IBBQ's 0.74%. However, this is not income from underlying assets directly but rather a snapshot of past distributions.

What does the term inception date tell us about a fund?

The inception date indicates when a fund was created and began trading. IBB was established on February 5, 2001, giving it a long operating history, while IBBQ started much later on June 11, 2021. A longer track record can offer more performance data.

What index do IBB and IBBQ track?

The provided data states the index tracked is not available for either fund. Therefore, it is not possible to detail the exact index benchmarks or explain how their exposures differ from a tracking perspective.

How similar are the top holdings of IBB and IBBQ?

Both ETFs have highly overlapping top holdings. Eight companies are shared: GILD, VRTX, AMGN, REGN, MRNA, RVMD, ILMN, and ALNY. This indicates a very similar portfolio structure, with only small differences in weightings or other holdings in the top ten list.

What is the difference in net assets between the two funds?

IBB reports $10.4 billion in net assets, compared with $96 million for IBBQ. Net assets represent the total market value of the fund's holdings. A larger size often suggests greater liquidity, which can be easier to trade.

How do the dividend yields compare between the two funds?

IBB offers a dividend yield of 0.16%, while IBBQ's yield is higher at 0.74%. In ETF investing, distributions come from realised profits or dividends from the underlying holdings and are paid out to investors periodically.

What expense ratio differences might mean for long-term investing?

Fees are paid from fund assets, lowering returns. A 0.25 percentage-point difference can add up over many years. In this case, IBBQ's lower 0.19% expense ratio, compared to IBB's 0.44%, presents a cost saving, all other things being equal.

Which type of investor might prefer IBB?

IBB is typically associated with investors seeking access to a large, well-established ETF with substantial assets. Its net assets of $10.4 billion and long inception date of 2001 might appeal to those who prioritise size and history when investing.

Which type of investor might prefer IBBQ?

IBBQ could be suited to investors focused on cost efficiency. Its lower 0.19% expense ratio versus IBB's 0.44%, and its higher 0.74% yield, are characteristics that might appeal to those prioritising fees and income distribution in their strategy.

Does the fund size (net assets) affect the investor experience?

Larger funds like IBB, with $10.4 billion in net assets, may offer better liquidity for trading, which is reflected in potentially narrower bid-ask spreads. Smaller funds like IBBQ, with $96 million, might be less liquid in some market conditions.

What are the key data points for comparing these two ETFs?

The comparison highlights differences in fees, size, and dividend yield. IBB is a larger fund with a long history but higher fees. IBBQ is a newer, smaller fund with lower fees and a higher yield, while both share similar top holdings.

IBB vs IBBQ

Two funds, one decision: we compare cost, performance and what each ETF actually holds in October 2026.

Compare iShares Biotechnology ETF (IBB) and Invesco Nasdaq Biotechnology ETF (IBBQ). This page reviews expenses, net assets, dividend yields, inception dates, and top holdings. Note that index tracking details are not available for either fund. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

IBB

Metric

IBBQ

0.44%

Expense Ratio

0.19%

0.16%

Dividend Yield

0.74%

$10.45B

Net Assets

$96.41M

249

Holdings

256

Feb 5, 2001

Inception Date

Jun 11, 2021

–

Index Tracked

–

Health

Fund Category

Health

IBBQ costs about $25.00 less per year for every $10,000 invested.

Shared Top Holdings

Holding	IBB	IBBQ
GILDGilead Sciences, Inc.	8.37%	8.26%
VRTXVertex Pharmaceuticals Incorporated	7.61%	7.53%
AMGNAmgen Inc.	7.31%	7.34%
REGNRegeneron Pharmaceuticals, Inc.	5.61%	5.31%
MRNAModerna, Inc.	4.06%	4.54%
RVMDRevolution Medicines, Inc.	2.66%	2.72%
ILMNIllumina, Inc.	2.60%	2.37%
ALNYAlnylam Pharmaceuticals, Inc.	2.31%	2.15%

Discover More Comparisons

IBB vs XBI

Compare IBB and XBI ETFs. Analyze expense ratios, top holdings, dividend yields and tracking structures to understand their differences without financial advice

IBB vs XLV

Compare IBB and XLV ETFs on expense ratios, holdings, dividends, and tracking. IBB: 0.44% fees, 0.16% yield. XLV: 0.08% fees, 1.51% yield. Neutral analysis.

Investment Analysis

IBB

Pros

IBB offers extensive liquidity given its substantial net assets exceeding ten billion dollars.
It provides long operational history, having been established in February 2001.
The fund features a diverse top ten portfolio spanning established biopharmaceutical companies.

Considerations

Its expense ratio of 0.44 percent is significantly higher than alternative options.
The dividend yield of 0.16 percent remains low compared to peer funds.
Concentrated top holdings like Gilead and Vertex increase single-stock risk exposure.

IBBQ

Pros

IBBQ benefits from a lower expense ratio of 0.19 percent versus competitors.
Its dividend yield of 0.74 percent offers better income potential than IBB.
The fund maintains a similar top ten holding structure to its larger rival.

Considerations

With only ninety-six million dollars in net assets, liquidity may be limited.
Inception in June 2021 means it lacks the long track record of IBB.
It does not disclose index tracking details, limiting transparency for investors.

About IBB and IBBQ

IBB (IBB)

The iShares Biotechnology ETF (IBB) offers investors diversified access to the dynamic biotechnology sector. As an exchange-traded fund, it tracks the performance of companies involved in medical research, drug development, and biotech innovation. With 249 holdings and net assets of USD 10.45 billion, IBB provides broad exposure to this capital-intensive industry. It carries an expense ratio of 0.44% and a modest dividend yield of 0.16%, reflecting the sector's focus on reinvestment for growth rather than income. Investors should note that biotechnology stocks can be highly volatile, driven by regulatory approvals and clinical trial outcomes. This ETF suits those seeking general exposure to healthcare innovation who understand that values can rise and fall significantly.

IBBQ (IBBQ)

The Invesco Nasdaq Biotechnology ETF (IBBQ) offers investors exposure to companies involved in biotechnology and related healthcare sectors. As an exchange-traded fund, it aims to track the performance of a selected index comprising these firms, providing a diversified entry point into this dynamic industry. With a low expense ratio of 0.19%, it allows for cost-effective investment, though returns are not guaranteed and value can fluctuate significantly due to the volatile nature of biotech developments. The fund launched in June 2021 and holds 256 assets, reflecting a broad range of market capitalisations within the sector. Investors may pay a dividend yield of 0.74%, although distributions can vary. This ETF is suitable for those interested in the long-term potential of healthcare innovation, provided they understand the inherent risks and suitability for their personal circumstances.

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IBB vs IBBQ

Fund Snapshot

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IBB vs XBI

IBB vs XLV

Investment Analysis

IBB

Pros

Considerations

IBBQ

Pros

Considerations

About IBB and IBBQ

Buy IBB or IBBQ in Nemo

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Trusted & Regulated

6% Interest on Cash

Frequently asked questions

What are expense ratios and why are they important?

How do I interpret dividend yields for ETFs?

What does the term inception date tell us about a fund?

What index do IBB and IBBQ track?

How similar are the top holdings of IBB and IBBQ?

What is the difference in net assets between the two funds?

How do the dividend yields compare between the two funds?

What expense ratio differences might mean for long-term investing?

Which type of investor might prefer IBB?

Which type of investor might prefer IBBQ?

Does the fund size (net assets) affect the investor experience?

What are the key data points for comparing these two ETFs?

Fund Snapshot

About IBB and IBBQ

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IBB vs XBI

IBB vs XLV