Looking for broad exposure to the Healthcare - Biotech segment of the equity market? You should consider the iShares Biotechnology ETF (IBB Quick QuoteIBB - Free Report) , a passively managed exchange traded fund launched on February 5, 2001.

Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.

Additionally, sector ETFs offer convenient ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Healthcare - Biotech is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 9, placing it in bottom 44%.

Index Details

The fund is sponsored by Blackrock. It has amassed assets over $8.11 billion, making it one of the largest ETFs attempting to match the performance of the Healthcare - Biotech segment of the equity market. IBB seeks to match the performance of the Nasdaq Biotechnology Index before fees and expenses.

The ICE Biotechnology Index contains securities of NASDAQ listed companies that are classified as either biotechnology or pharmaceuticals.

Costs

Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.

Annual operating expenses for this ETF are 0.44%, making it on par with most peer products in the space.

It has a 12-month trailing dividend yield of 0.24%.

Sector Exposure and Top Holdings

ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.

This ETF has heaviest allocation in the Healthcare sector -- about 100% of the portfolio.

Looking at individual holdings, Gilead Sciences Inc (GILD) accounts for about 7.73% of total assets, followed by Amgen Inc (AMGN) and Vertex Pharmaceuticals Inc (VRTX).

The top 10 holdings account for about 46.69% of total assets under management.

Performance and Risk

Year-to-date, the iShares Biotechnology ETF has added roughly 2.97% so far, and was up about 38.39% over the last 12 months (as of 06/22/2026). IBB has traded between $124.94 and $177.64 in this past 52-week period.

The ETF has a beta of 0.72 and standard deviation of 19.77% for the trailing three-year period, making it a high risk choice in the space. With about 259 holdings, it effectively diversifies company-specific risk.

Alternatives

iShares Biotechnology ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, IBB is a reasonable option for those seeking exposure to the Health Care ETFs area of the market. Investors might also want to consider some other ETF options in the space.

First Trust NYSE Arca Biotechnology ETF (FBT) tracks NYSE Arca Biotechnology Index and the State Street SPDR S&P Biotech ETF (XBI) tracks S&P Biotechnology Select Industry Index. First Trust NYSE Arca Biotechnology ETF has $2.63 billion in assets, State Street SPDR S&P Biotech ETF has $8.66 billion. FBT has an expense ratio of 0.55%, and XBI charges 0.35%.

Bottom Line

To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.