Best Biotech ETFs (2026)
Which biotech fund to hold — 5 funds ranked on cost, yield, return, risk and ETFValuer's overall grade.
Every figure on this page is recalculated from market data each day, so the ranking reflects current conditions rather than whenever this page was written. Educational content — not financial advice.
Top Picks Right Now
- best risk-adjusted return (Sharpe 1.33)
- largest and most liquid at $11.2B
- cheapest in the group at 0.35%
- strongest 3-year return at +130.8%
Ranked by ETFValuer's overall score. Recalculated every day from live market data — these positions change as the underlying numbers move.
At a Glance
Each superlative is measured within this group of 5 funds, not across the whole market.
All 5 Funds Ranked
| Fund | Category | Cost | Yield | 1Y | 3Y | Volatility | Max DD | Sharpe | AUM | Score | Grade |
|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 IBBiShares Biotechnology ETF | Healthcare | 0.44% | 0.16% | +35.2% | +85.1% | 22.7% | -24.9% | 1.33 | $11.2B | 71.4 | B |
| 2 XBIState Street SPDR S&P Biotech ETF | Healthcare | 0.35% | 0.39% | +39.9% | +130.8% | 29.0% | -33.0% | 1.20 | $10.4B | 71.0 | B |
| 3 PPHVanEck Pharmaceutical ETF | Healthcare | 0.36% | 4.94% | +27.0% | +62.1% | 18.4% | -18.1% | 1.20 | $1.0B | 68.7 | B |
| 4 XPHState Street SPDR S&P Pharmaceuticals ETF | Healthcare | 0.35% | 0.44% | +29.8% | +82.5% | 23.5% | -23.6% | 1.06 | $524M | 66.0 | B |
| 5 ARKGARK Genomic Revolution ETF | Healthcare | 0.75% | — | +57.5% | +114.7% | 44.7% | -46.5% | 1.18 | $2.2B | 63.0 | C |
Max DD is the deepest peak-to-trough fall over the measurement window. Sharpe ratio measures return per unit of volatility — higher is better. Every figure is recalculated daily.
What Makes a Good Fund Here
Biotech returns are driven by trial results and acquisitions rather than earnings, which makes the sector unusually volatile and unusually uncorrelated with the rest of healthcare. Equal-weighted funds behave very differently from cap-weighted ones here, because the small companies are where the binary outcomes are.
The ETFValuer score blends trailing return, risk-adjusted return, expense ratio, maximum drawdown, fund size and volatility, each percentile-ranked against the full tracked universe, into a single 0-100 figure graded A+ to F. It is a systematic summary of past data, not a forecast — read it alongside the individual columns rather than instead of them.
Broader Alternatives
A dedicated fund here is a concentrated bet. These broader funds hold the same companies alongside others, giving similar exposure with less single-industry risk — worth checking before committing to the narrower option.
| Fund | Category | Cost | 3Y | Score |
|---|---|---|---|---|
| XLV | Healthcare | 0.08% | +52.2% | 77.7 |
| VHT | Healthcare | 0.09% | +55.2% | 77.1 |
Head-to-Head Comparisons
Full metric-by-metric breakdowns for the closest calls in this group.
Frequently Asked Questions
What is the best biotech ETF?
IBB ranks highest of the 5 biotech funds tracked, scoring 71.4 (B). XBI is the cheapest at 0.35%.
Why are biotech ETFs so volatile?
Individual holdings can move 50% or more on a single trial readout, and many smaller biotech companies have no revenue at all. Funds that weight holdings equally rather than by size amplify this considerably.
Compare any of these funds directly
Side-by-side metrics, holdings overlap and return correlation for any pair.