What is the main difference in index focus between IBBQ and XBI?

IBBQ tracks the Nasdaq Biotechnology Index, while XBI tracks the S&P Biotechnology Select Industry Index. The provided fund data does not specify the index for IBBQ directly as available, but the context clarifies this tracking distinction. These different methodologies mean the funds may hold different combinations of biotechnology companies, leading to variations in sector exposure and concentration despite both falling under the Health category.

How does the expense ratio difference impact long-term costs for investors?

IBBQ has a lower expense ratio of 0.19% compared to XBI's 0.35%. This 0.16 percentage point difference means holding costs for IBBQ are structurally lower each year. Over time, compounding this smaller deduction can result in slightly higher net returns for IBBQ relative to XBI, assuming all other factors remain identical. However, this does not guarantee better performance, as market outcomes and tracking differences also influence final returns.

What are the dividend yields of IBBQ and XBI, and how do they compare?

IBBQ offers a 0.74% dividend yield, whereas XBI provides a lower yield of 0.36%. IBBQ therefore delivers a slightly higher level of current income from distributions relative to the fund size. These yields indicate that IBBQ returns more cash to shareholders periodically, although neither fund is primarily an income product. Investors focused on minimal income generation might note this difference, while those seeking growth may view distributions as a secondary factor.

How do the top ten holdings of IBBQ and XBI overlap?

IBBQ's top ten includes GILD at 8.26% and VRTX at 7.53%, reflecting higher concentration in established names. XBI's largest holding is TWST at 1.91%. GILD and MRNA appear in the top ten of both funds, showing some shared exposure. However, the weight differences are stark: GILD represents over 8% of IBBQ but less than 2% of XBI, indicating fundamentally different levels of concentration within the top holdings.

What is the inception date for each fund and why does it matter?

XBI was launched on 31 January 2006, providing over fifteen years of performance history. IBBQ was established on 11 June 2021, meaning it has a much shorter track record. The longer history of XBI allows for a more detailed assessment of how the fund has handled various market cycles. IBBQ's newer status means less available data on its long-term tracking efficiency and consistency, which may be important for investors evaluating stability.

How do fund size and liquidity differ between IBBQ and XBI?

XBI holds $10.3 billion in net assets, indicating deep liquidity and likely tighter bid-ask spreads. IBBQ has $96 million in net assets, making it significantly smaller. This size disparity suggests that XBI may offer more flexibility for trading larger positions with less price impact. The smaller scale of IBBQ could result in less liquidity, which some investors consider a risk when entering or exiting substantial holdings quickly.

What are the sector weights for these funds?

The specific sector weights for both IBBQ and XBI are not available in the provided dataset. Consequently, it is not possible to quantify the exact percentage of assets allocated to sub-sectors such as large-cap, mid-cap, or small-cap biotechnology companies based solely on this data. Investors needing this detail would have to consult the issuer's official fact sheets, as the fund profiles here do not include these figures.

What types of companies do these funds invest in?

Both funds invest in the biotechnology industry. IBBQ's top holdings, such as GILD, VRTX, and AMGN, include large, well-established companies, though MRNA and smaller names like RVMD also feature. XBI's top ten includes a broader mix of smaller-cap or volatile names like TWST, NTRA, and HALO, with weights generally below 2%. This suggests XBI provides exposure to a wider array of companies with smaller individual positions, potentially resulting in higher volatility.

Is sector weight data available for comparison in this context?

The provided data explicitly lists sector weights as not available for both IBBQ and XBI. While both fall under the Health category, the detailed sub-sector breakdown is missing from this comparison dataset. Users should not assume specific allocations to drug development, diagnostics, or medical devices. For a precise sector weight comparison, one would need to reference external sources or official fund documents that publish this granular asset allocation information.

What do these figures mean for investors evaluating biotechnology ETFs?

The data highlights trade-offs between the two funds: IBBQ offers lower fees and higher income with larger holdings, but is newer and smaller. XBI provides a long track record and high liquidity but costs more and holds more diversified smaller weights. This comparison aids understanding of fund mechanics, expense impact, and concentration risk. Investors should consider these factual differences alongside their own objectives. Note that this content is educational and does not constitute financial advice.

What educational disclaimer applies to this comparison?

This comparison is intended for educational purposes only. It presents factual data regarding expense ratios, holdings, yields, and fund sizes from provided information but does not constitute a recommendation to buy, sell, or hold any security. Investors should carefully consider their financial situation, risk tolerance, and investment objectives. Past performance, such as XBI's track record since 2006, does not guarantee future results. Always conduct thorough research or consult a qualified advisor before making investment decisions.

IBBQ vs XBI

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

This page compares Invesco Nasdaq Biotechnology ETF (IBBQ) and SPDR S&P Biotech ETF (XBI) on fees, holdings, dividends and index focus. IBBQ tracks the Nasdaq Biotechnology Index with a 0.19% expense ratio; XBI tracks the S&P Biotechnology Select Industry Index at 0.35%. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

IBBQ

Metric

XBI

0.19%

Expense Ratio

0.35%

0.74%

Dividend Yield

0.36%

$96.41M

Net Assets

$10.34B

256

Holdings

167

Jun 11, 2021

Inception Date

Jan 31, 2006

–

Index Tracked

–

Health

Fund Category

Health

IBBQ costs about $16.00 less per year for every $10,000 invested.

Shared Top Holdings

Holding	IBBQ	XBI
GILDGilead Sciences, Inc.	8.26%	1.48%
MRNAModerna, Inc.	4.54%	1.63%

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Investment Analysis

IBBQ

Pros

IBBQ offers a lower 0.19% expense ratio than its peer, reducing annual holding costs for investors.
The fund maintains a 0.74% dividend yield, providing slightly higher current income than comparable biotechnology ETFs.
Top holdings include established names like GILD and VRTX, which may contribute to portfolio stability.

Considerations

With $96 million in net assets, IBBQ is small, potentially limiting liquidity and trading flexibility.
Inception in 2021 means the fund lacks the long-term performance history of older sector ETFs.
High concentration in top ten holdings may increase volatility compared to broader biotechnology indices.

XBI

Pros

XBI benefits from substantial $10.3 billion net assets, ensuring deep liquidity and tight bid-ask spreads.
The fund has over fifteen years of track record since its 2006 inception, offering historical performance data.
Equal-weighted structure likely reduces concentration risk, as no top holding exceeds 1.91% of assets.

Considerations

The 0.35% expense ratio is higher than some newer biotechnology ETF alternatives currently available.
A low 0.36% dividend yield means the fund primarily offers capital growth rather than income.
Smaller top holdings weights suggest exposure to numerous small-cap biotechs, potentially increasing overall volatility.

About IBBQ and XBI

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.

XBI (XBI)

The SPDR S&P Biotech ETF offers investors access to a broad selection of U.S. biotechnology companies, currently holding approximately 167 stocks. As a Health sector fund, it tracks the performance of the S&P Biotechnology Select Industry Index, which uses equal weighting to give smaller companies a greater influence compared to market-cap weighted indices. With net assets of USD 10.34 billion and an expense ratio of 0.35%, it is a substantial vehicle for sector exposure. The fund currently provides a dividend yield of 0.36%. Biotech is known for its volatility and innovation potential, meaning values can rise and fall significantly. This fund is designed for general educational purposes and does not guarantee returns, so investors should consider their risk tolerance before investing.

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IBBQ vs XBI

Fund Snapshot

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Investment Analysis

IBBQ

Pros

Considerations

XBI

Pros

Considerations

About IBBQ and XBI

Buy IBBQ or XBI in Nemo

Zero Commission

Trusted & Regulated

6% Interest on Cash

Frequently asked questions

What is the main difference in index focus between IBBQ and XBI?

How does the expense ratio difference impact long-term costs for investors?

What are the dividend yields of IBBQ and XBI, and how do they compare?

How do the top ten holdings of IBBQ and XBI overlap?

What is the inception date for each fund and why does it matter?

How do fund size and liquidity differ between IBBQ and XBI?

What are the sector weights for these funds?

What types of companies do these funds invest in?

Is sector weight data available for comparison in this context?

What do these figures mean for investors evaluating biotechnology ETFs?

What educational disclaimer applies to this comparison?

Fund Snapshot

About IBBQ and XBI

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IBB vs XBI

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