AEF vs EEM: Correlation
Measured on weekly returns over the past three years, abrdn Emerging Markets ex-China Fund, Inc. (AEF) and iShares MSCI Emerging Markets ETF (EEM) carry a correlation of 0.92, a very strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AEF and EEM?
Across a 3-year window, the weekly returns of AEF and EEM correlate at 0.92, very strong, meaning they move nearly in lockstep. Recent behaviour matches the longer record: 0.94 over 1 year against 0.92 over 3. Stretching to 5 years gives 0.90, with an annualized covariance of 390.4 %².
Few assets follow AEF as closely as EEM, which ranks #1 of 21 tracked partners. Correlation aside, the last 12 months split them widely, with AEF ahead by 31.3 points (+69.4% versus +38.1%).
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.
AEF vs EEM: side by side
| AEF (abrdn Emerging Markets ex-China Fund, Inc.) | EEM (iShares MSCI Emerging Markets ETF) | |
|---|---|---|
| 1-year return | +69.4% | +38.1% |
| 5-year return | +66.6% | +47.1% |
| Volatility (ann.) | 23.7% | 18.0% |
| Beta vs S&P 500 | 1.08 | 0.85 |
| Max drawdown (3Y) | -20.0% | -17.3% |
| Market cap | $0.4B | – |
| P/E (trailing) | 4.1 | – |
| Dividend yield | 6.80% | 1.73% |
| Expense ratio | – | 0.72% |
| Assets under management | – | $29.2B |
| Sector / category | US Listed | ETF · International |
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.
Year-by-year returns
| Year | AEF | EEM |
|---|---|---|
| 2022 | -29.6% | -20.6% |
| 2023 | +7.1% | +8.9% |
| 2024 | +9.4% | +6.5% |
| 2025 | +50.2% | +34.0% |
| 2026 | +41.8% | +24.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are AEF and EEM good diversifiers for each other?
No: a correlation of 0.92 means AEF and EEM tend to fall together, which is precisely when diversification is supposed to help.
FAQ
What is the correlation between AEF and EEM?
Using weekly returns as of 2026-08-27: 0.92 over 3 years, with 0.94 over the last year and 0.90 over 5 years.
Is EEM a good diversifier for AEF?
No: a correlation of 0.92 means AEF and EEM tend to fall together, which is precisely when diversification is supposed to help.
What does a correlation of 0.92 mean?
On the −1 to +1 scale, 0.92 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
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Related comparisons
Hubs: AEF correlations · EEM correlations
