ACWI vs EEM: Correlation & Overlap
Measured on weekly returns over the past three years, iShares MSCI ACWI ETF (ACWI) and iShares MSCI Emerging Markets ETF (EEM) carry a correlation of 0.81, a very strong link. By holdings, the two funds overlap 11.2% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ACWI and EEM?
On 3 years of weekly data the ACWI/EEM correlation comes out at 0.81, very strong, meaning they move nearly in lockstep. Recent behaviour matches the longer record: 0.85 over 1 year against 0.81 over 3. The 5-year figure is 0.78, and annualized covariance runs at 199.8 %².
By 3-year correlation, EEM places #40 of the 119 assets tracked against ACWI. The last year tells two different stories: EEM led by 15.4 percentage points, +22.7% for ACWI against +38.1% for EEM. Stability stands out here, with the rolling one-year correlation confined to 0.72 through 0.88.
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
ACWI vs EEM: side by side
| ACWI (iShares MSCI ACWI ETF) | EEM (iShares MSCI Emerging Markets ETF) | |
|---|---|---|
| 1-year return | +22.7% | +38.1% |
| 5-year return | +69.0% | +47.1% |
| Volatility (ann.) | 13.8% | 18.0% |
| Beta vs S&P 500 | 0.92 | 0.85 |
| Max drawdown (3Y) | -16.5% | -17.3% |
| Dividend yield | 1.44% | 1.73% |
| Expense ratio | 0.32% | 0.72% |
| Assets under management | $32.5B | $29.2B |
| Sector / category | ETF · Global | ETF · International |
ACWI is a Global Large-Stock Blend fund from iShares: $32.5B under management, 1590 holdings, a 0.32% expense ratio, a 1.44% trailing dividend yield. EEM is a Diversified Emerging Mkts fund from iShares: $29.2B under management, 968 holdings, a 0.72% expense ratio, a 1.73% trailing dividend yield.
Portfolio overlap between ACWI and EEM
The two portfolios are largely distinct, with 418 holdings in common adding up to 11.2% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
| Common holding | Weight in ACWI | Weight in EEM |
|---|---|---|
| 2330 | 1.79% | 15.14% |
| 005930 | 0.84% | 7.15% |
| 000660 | 0.64% | 5.45% |
| 700 | 0.33% | 2.83% |
| 9988 | 0.24% | 2.02% |
| 2454 | 0.17% | 1.45% |
| 005935 | 0.12% | 0.93% |
| 2308 | 0.10% | 0.87% |
| 939 | 0.09% | 0.80% |
| 2317 | 0.09% | 0.77% |
| RELIANCE | 0.08% | 0.67% |
| HDFCBANK | 0.08% | 0.72% |
| ICICIBANK | 0.07% | 0.63% |
| 402340 | 0.07% | 0.57% |
| 1211 | 0.07% | 0.53% |
Largest positions held only by ACWI: NVDA (4.64%), AAPL (4.41%), MSFT (3.35%), AMZN (2.41%), GOOGL (1.91%). Only by EEM: CIBEST (0.06%), PPC (0.06%), DIB (0.05%), BSANTANDER (0.05%), 1336 (0.05%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 15 common positions shown.
Year-by-year returns
| Year | ACWI | EEM |
|---|---|---|
| 2022 | -18.4% | -20.6% |
| 2023 | +22.3% | +8.9% |
| 2024 | +17.4% | +6.5% |
| 2025 | +22.4% | +34.0% |
| 2026 | +14.9% | +24.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ACWI and EEM good diversifiers for each other?
No. With a correlation of 0.81, ACWI and EEM move nearly in lockstep, so holding both adds very little diversification.
FAQ
What is the correlation between ACWI and EEM?
Using weekly returns as of 2026-08-27: 0.81 over 3 years, with 0.85 over the last year and 0.78 over 5 years.
Is EEM a good diversifier for ACWI?
No. With a correlation of 0.81, ACWI and EEM move nearly in lockstep, so holding both adds very little diversification.
How much do ACWI and EEM overlap?
The two funds share 418 holdings amounting to 11.2% of weight, per issuer portfolio files dated 2026-08-26.
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Related comparisons
Hubs: ACWI correlations · EEM correlations
