DGRO vs EEM: Correlation & Overlap
How closely do iShares Core Dividend Growth ETF (DGRO) and iShares MSCI Emerging Markets ETF (EEM) trade together? Their weekly returns over three years give a correlation of 0.55, which is moderate. Looking through to holdings, 0.0% 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 DGRO and EEM?
Over the past 3 years, DGRO and EEM moved with a correlation of 0.55, which is moderate. The link has loosened recently: the 1-year correlation (0.41) runs below the 3-year figure (0.55). Over 5 years the correlation is 0.55, and the annualized covariance of weekly returns is 112.7 %².
Within DGRO's tracked universe of 138 assets, EEM comes in at #87 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months EEM outperformed by 17.1 percentage points (+21.0% for DGRO against +38.1% for EEM). The rolling one-year correlation moved between 0.42 and 0.78 over the past three years, a moderate range. Risk is not evenly split, since EEM carries 1.6 times the volatility of the other side.
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.
DGRO vs EEM: side by side
| DGRO (iShares Core Dividend Growth ETF) | EEM (iShares MSCI Emerging Markets ETF) | |
|---|---|---|
| 1-year return | +21.0% | +38.1% |
| 5-year return | +67.9% | +47.1% |
| Volatility (ann.) | 11.4% | 18.0% |
| Beta vs S&P 500 | 0.65 | 0.85 |
| Max drawdown (3Y) | -14.0% | -17.3% |
| Dividend yield | 1.89% | 1.73% |
| Expense ratio | 0.08% | 0.72% |
| Assets under management | $42.8B | $29.2B |
| Sector / category | ETF · Dividend | ETF · International |
DGRO is a Large Value fund from iShares: $42.8B under management, 383 holdings, a 0.08% expense ratio, a 1.89% 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 DGRO and EEM
The two portfolios are largely distinct: 0.0% of the funds' weight sits in the same underlying holdings (2 common positions). Correlation tells you they move together; overlap tells you why.
Largest positions held only by DGRO: MSFT (3.39%), JNJ (3.16%), JPM (3.14%), ABBV (3.03%), XOM (2.86%). Only by EEM: 2330 (15.14%), 005930 (7.15%), 000660 (5.45%), 700 (2.83%), 9988 (2.02%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 2 common positions shown.
Year-by-year returns
| Year | DGRO | EEM |
|---|---|---|
| 2022 | -7.9% | -20.6% |
| 2023 | +10.5% | +8.9% |
| 2024 | +16.6% | +6.5% |
| 2025 | +15.7% | +34.0% |
| 2026 | +15.2% | +24.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are DGRO and EEM good diversifiers for each other?
Somewhat, no more. With 0.55 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between DGRO and EEM?
Using weekly returns as of 2026-08-27: 0.55 over 3 years, with 0.41 over the last year and 0.55 over 5 years.
Is EEM a good diversifier for DGRO?
Somewhat, no more. With 0.55 correlation, most large moves hit both names, and the diversification benefit stays modest.
How much do DGRO and EEM overlap?
0.0% by weight, across 2 common holdings, based on issuer-disclosed portfolios as of 2026-08-26.
Use this data
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Related comparisons
Hubs: DGRO correlations · EEM correlations
