IBB vs VTI
iShares Biotechnology ETF vs Vanguard Morningstar Total Stock Market ETF
Which is better, IBB or VTI?
Mid Cap Blend against Large Cap Blend.
VTI has a lower expense ratio. IBB led over 1Y, VTI over 3Y, 5Y and the full window. VTI is less concentrated, with 33.3% of the fund in its ten largest positions against 47.3%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | IBB | VTI |
|---|---|---|
| Expense Ratio | 0.44% | 0.03%Best |
| AUM | $10.6B | $666.9B |
| Dividend Yield | 0.20% | 1.03% |
| Holdings | 253 | 3,543 |
| YTD Return | +23.93%Best | +13.10% |
| 1Y Return | +48.03%Best | +17.01% |
| 3Y Return (annualized) | +19.97% | +22.26%Best |
| 5Y Return (annualized) | +4.45% | +11.98%Best |
| Volatility (annualized) | 21.3% | 15.3%Best |
| Max Drawdown | -62.9% | -56.6%Best |
| $10,000 over 5 years | $12,432 | $17,608Best |
| Top 10 Weight | 47.3% | 33.3%Best |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Mid Cap Blend | Large Cap Blend |
| Inception | Feb 5, 2001 | May 24, 2001 |
Volatility and max drawdown are measured over the window both funds cover: May 31, 2001 to Sep 24, 2026 (25.3 years).
IBB vs VTI growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 25.3 years both funds cover.
IBB vs VTI Performance
iShares Biotechnology ETF (IBB) is an ETF from iShares by BlackRock (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is an ETF from Vanguard (US). Over the past year IBB returned +48.03% while VTI returned +17.01%. Year to date, IBB is up 23.93% versus a gain of 13.10% for VTI.
Over three years, IBB compounded at +19.97% per year against +22.26% for VTI; over five years the annualized figures are +4.45% and +11.98% respectively. Across the full 25-year window we track, VTI has the edge at +8.06% annualized vs +7.62%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IBB has been the more volatile fund, with annualized monthly volatility of 21.3% compared with 15.3% for VTI. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -62.9% for IBB and -56.6% for VTI. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.65. They move together some of the time, and apart the rest.
Fees and Cost Over Time
IBB charges 0.44% per year while VTI charges 0.03%. On a $10,000 position that is $44 vs $3 annually, a gap of $41 per year that compounds over a long holding period. On income, IBB currently yields 0.20% against 1.03% for VTI.
Holdings Overlap
86.6% of IBB's money is in holdings VTI also owns. 1.6% of VTI's money is in holdings IBB also owns.
Most of IBB is already inside VTI. Owning both mostly buys the same companies twice.
197 positions in common, counted across the 242 positions we hold weights for in IBB and 3,463 in VTI, against full books of 253 and 3,543.
What only one of them owns
Our book lists 1,098 positions for VTI that do not appear in our book for IBB (95.8% of the fund), and 18 for IBB that do not appear in VTI (4.5%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in IBB | Weight in VTI | Difference |
|---|---|---|---|
| AMGNAmgen Inc. | 8.45% | 0.29% | 8.16% |
| VRTXNvaesrtex Pharmaceuticals Inc | 8.05% | 0.17% | 7.88% |
| GILDGilead Sciences Inc | 7.21% | 0.22% | 6.99% |
| REGNRegeneron Pharmaceuticals, Inc. | 5.72% | 0.11% | 5.61% |
| MRNAModerna therapeutics | 3.62% | 0.03% | 3.59% |
| NTRANatera Inc | 3.12% | 0.05% | 3.07% |
| RVMDRevolution Medicines Inc | 2.78% | 0.05% | 2.73% |
| ILMNIllumina, Inc. | 2.29% | 0.04% | 2.25% |
| ALNYAlnylam Pharmaceuticals Inc. | 2.27% | 0.04% | 2.23% |
| BIIBBiogen Inc. Com | 2.25% | 0.04% | 2.21% |
86.6% of IBB is already inside VTI.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, IBB or VTI?
IBB has an expense ratio of 0.44% while VTI charges 0.03%. VTI is the cheaper option, by $41 a year on a $10,000 investment.
Which performed better, IBB or VTI?
Over the past year IBB returned +48.03% vs +17.01% for VTI, so IBB leads on 1-year performance. Over the longest common window we track (25 years), IBB annualized +7.62% vs +8.06% for VTI. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IBB or VTI?
IBB has been the more volatile fund at 21.3% annualized versus 15.3% for VTI. Worst drawdown: IBB -62.9% vs VTI -56.6%.
Should I hold both IBB and VTI?
IBB and VTI have a monthly-return correlation of 0.65, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between IBB and VTI?
86.6% of IBB's money is in holdings VTI also owns. 1.6% of VTI's is in holdings IBB also owns. They hold 197 positions in common, counted across the 242 positions we hold weights for in IBB and 3,463 in VTI.
Which pays a higher dividend, IBB or VTI?
IBB yields 0.20% while VTI yields 1.03%, so VTI currently pays the higher dividend yield.
Is VTI better than IBB?
VTI has a lower expense ratio. IBB led over 1Y, VTI over 3Y, 5Y and the full window. VTI is less concentrated, with 33.3% of the fund in its ten largest positions against 47.3%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.