DGRO vs IEMG: Correlation & Overlap
How closely do iShares Core Dividend Growth ETF (DGRO) and iShares Core MSCI Emerging Markets ETF (IEMG) trade together? Their weekly returns over three years give a correlation of 0.56, which is moderate. By holdings, the two funds overlap 0.1% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are DGRO and IEMG?
Over the past 3 years, DGRO and IEMG moved with a correlation of 0.56, which is moderate. The link has loosened recently: the 1-year correlation (0.43) runs below the 3-year figure (0.56). Over 5 years the correlation is 0.56, and the annualized covariance of weekly returns is 111.1 %².
By 3-year correlation, IEMG places #84 of the 138 assets tracked against DGRO. Correlation aside, the last 12 months split them widely, with IEMG ahead by 15.0 points (+21.0% versus +36.0%). On a rolling one-year basis the correlation drifted between 0.44 and 0.78, a moderate band. One caveat on sizing: IEMG is 1.5 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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 IEMG: side by side
| DGRO (iShares Core Dividend Growth ETF) | IEMG (iShares Core MSCI Emerging Markets ETF) | |
|---|---|---|
| 1-year return | +21.0% | +36.0% |
| 5-year return | +67.9% | +50.7% |
| Volatility (ann.) | 11.4% | 17.4% |
| Beta vs S&P 500 | 0.65 | 0.84 |
| Max drawdown (3Y) | -14.0% | -17.2% |
| Dividend yield | 1.89% | 2.31% |
| Expense ratio | 0.08% | 0.09% |
| Assets under management | $42.8B | $152.2B |
| Sector / category | ETF · Dividend | ETF · International |
DGRO, iShares's Large Value fund, carries $42.8B under management, 383 holdings, a 0.08% expense ratio, a 1.89% 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 DGRO and IEMG
The two portfolios are largely distinct. Weighing the shared positions, 0.1% of the two funds is identical, spread across 5 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in DGRO | Weight in IEMG |
|---|---|---|
| BDX | 0.31% | 0.02% |
| TEL | 0.19% | 0.01% |
| NXST | 0.04% | 0.01% |
| ECL | 0.18% | 0.01% |
| SRE | 0.35% | 0.01% |
Largest positions held only by DGRO: MSFT (3.39%), JNJ (3.16%), JPM (3.14%), ABBV (3.03%), XOM (2.86%). Only by IEMG: 2330 (13.28%), 005930 (6.27%), 000660 (4.78%), 700 (2.49%), 9988 (1.77%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 5 common positions shown.
Year-by-year returns
| Year | DGRO | IEMG |
|---|---|---|
| 2022 | -7.9% | -20.0% |
| 2023 | +10.5% | +11.5% |
| 2024 | +16.6% | +6.5% |
| 2025 | +15.7% | +32.6% |
| 2026 | +15.2% | +23.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are DGRO and IEMG good diversifiers for each other?
Somewhat, no more. With 0.56 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between DGRO and IEMG?
As of 2026-08-27, the correlation of weekly returns between DGRO and IEMG is 0.56 over 3 years, 0.43 over 1 year and 0.56 over 5 years.
Is IEMG a good diversifier for DGRO?
Somewhat, no more. With 0.56 correlation, most large moves hit both names, and the diversification benefit stays modest.
How much do DGRO and IEMG overlap?
The two funds share 5 holdings amounting to 0.1% of weight, per issuer portfolio files dated 2026-08-26.
Use this data
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Hubs: DGRO correlations · IEMG correlations
