IBBQ vs IBB: Biotech ETFs Show Strong Returns but High Volatility
IBBQ posted a 43.6% one-year return and 38% max drawdown, while IBB has $9.61B AUM and no dividends. IBBQ outperformed VHT and IXJ over one year but with higher volatility.
The Invesco Nasdaq Biotechnology ETF (IBBQ) has delivered a 43.6% one-year total return as of July 23, 2026, outperforming broad healthcare ETFs but carrying a five-year maximum drawdown of 38.0%. The fund tracks the Nasdaq Biotechnology Index and holds 251 securities, with top positions in Amgen (8.13%), Vertex Pharmaceuticals (7.90%), and Gilead Sciences (7.26%).
IBBQ was launched in 2021 and charges a 0.19% expense ratio, with a dividend yield of 0.8% and $75.3 million in assets under management. It paid $0.26 per share over the trailing 12 months.
The iShares Nasdaq Biotechnology ETF (IBB), launched in February 2001, also seeks to track the Nasdaq Biotechnology Index. IBB has $9.61 billion in assets under management and an expense ratio of 0.44%. IBB does not pay dividends, and its price was $192.06 in the latest data, with a 51.42% three-year NAV total return. IBBQ's three-year NAV total return was 65.71%.
In comparison, the Vanguard Health Care ETF (VHT) offers a lower 0.09% expense ratio and a 1.6% dividend yield, with a five-year maximum drawdown of 17.7% versus IBBQ's 38.0%. VHT returned 22.7% over the past year and holds 411 positions, including Eli Lilly at 14.19%, Johnson & Johnson at 8.89%, and AbbVie at 6.56%.
The iShares Global Healthcare ETF (IXJ) has a 0.40% expense ratio, a 1.47% dividend yield, and $3.8 billion in assets. IXJ posted an 18.91% one-year return as of July 17, 2026, with a five-year maximum drawdown of 18.14%. IBBQ's one-year return as of that date was 48.01%. A $1,000 investment in IBBQ grew to $1,355 over five years, versus $1,263 for IXJ.