ACWI vs IEMG: Correlation & Overlap
How closely do iShares MSCI ACWI ETF (ACWI) and iShares Core MSCI Emerging Markets ETF (IEMG) trade together? Their weekly returns over three years give a correlation of 0.81, which is very strong. Looking through to holdings, 11.3% of the two portfolios is the same by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ACWI and IEMG?
On 3 years of weekly data the ACWI/IEMG correlation comes out at 0.81, very strong, meaning they move nearly in lockstep. Recent behaviour matches the longer record: 0.86 over 1 year against 0.81 over 3. The 5-year figure is 0.79, and annualized covariance runs at 195.7 %².
By 3-year correlation, IEMG places #41 of the 119 assets tracked against ACWI. Over the last 12 months IEMG came out ahead by 13.3 percentage points (+22.7% against +36.0%). The rolling one-year correlation stayed in a tight band between 0.73 and 0.88 over the past three years, which points to a structural rather than episodic relationship.
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 IEMG: side by side
| ACWI (iShares MSCI ACWI ETF) | IEMG (iShares Core MSCI Emerging Markets ETF) | |
|---|---|---|
| 1-year return | +22.7% | +36.0% |
| 5-year return | +69.0% | +50.7% |
| Volatility (ann.) | 13.8% | 17.4% |
| Beta vs S&P 500 | 0.92 | 0.84 |
| Max drawdown (3Y) | -16.5% | -17.2% |
| Dividend yield | 1.44% | 2.31% |
| Expense ratio | 0.32% | 0.09% |
| Assets under management | $32.5B | $152.2B |
| 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. IEMG, iShares's Diversified Emerging Mkts fund, carries $152.2B under management, 1824 holdings, a 0.09% expense ratio, a 2.31% trailing dividend yield.
Portfolio overlap between ACWI and IEMG
The two portfolios are largely distinct. Weighing the shared positions, 11.3% of the two funds is identical, spread across 428 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in ACWI | Weight in IEMG |
|---|---|---|
| 2330 | 1.79% | 13.28% |
| 005930 | 0.84% | 6.27% |
| 000660 | 0.64% | 4.78% |
| 700 | 0.33% | 2.49% |
| 9988 | 0.24% | 1.77% |
| 2454 | 0.17% | 1.27% |
| 005935 | 0.12% | 0.81% |
| 2308 | 0.10% | 0.76% |
| 939 | 0.09% | 0.70% |
| 2317 | 0.09% | 0.67% |
| RELIANCE | 0.08% | 0.59% |
| HDFCBANK | 0.08% | 0.61% |
| ICICIBANK | 0.07% | 0.55% |
| 402340 | 0.07% | 0.50% |
| 1211 | 0.07% | 0.47% |
Largest positions held only by ACWI: NVDA (4.64%), AAPL (4.41%), MSFT (3.35%), AMZN (2.41%), GOOGL (1.91%). Only by IEMG: 2408 (0.14%), 2344 (0.12%), 8299 (0.08%), 6274 (0.08%), 2313 (0.08%).
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 | IEMG |
|---|---|---|
| 2022 | -18.4% | -20.0% |
| 2023 | +22.3% | +11.5% |
| 2024 | +17.4% | +6.5% |
| 2025 | +22.4% | +32.6% |
| 2026 | +14.9% | +23.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ACWI and IEMG good diversifiers for each other?
Not really. At 0.81, the two trade almost as one position, and owning both buys little extra protection.
FAQ
What is the correlation between ACWI and IEMG?
The ACWI/IEMG correlation stands at 0.81 on a 3-year window (1 year: 0.86, 5 years: 0.79), computed from weekly returns as of 2026-08-27.
Is IEMG a good diversifier for ACWI?
Not really. At 0.81, the two trade almost as one position, and owning both buys little extra protection.
How much do ACWI and IEMG overlap?
The two funds share 428 holdings amounting to 11.3% of weight, per issuer portfolio files dated 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/acwi-vs-iemg.json
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[](https://www.pairbook.io/pair/acwi-vs-iemg/)
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Related comparisons
Hubs: ACWI correlations · IEMG correlations
