EEM vs EMF: Correlation
iShares MSCI Emerging Markets ETF (EEM) and Templeton Emerging Markets Fund (EMF) show a very strong relationship: their 3-year correlation of weekly returns is 0.90.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are EEM and EMF?
Across a 3-year window, the weekly returns of EEM and EMF correlate at 0.90, very strong, meaning they move nearly in lockstep. Recent behaviour matches the longer record: 0.90 over 1 year against 0.90 over 3. Stretching to 5 years gives 0.91, with an annualized covariance of 339.9 %².
Within EEM's tracked universe of 67 assets, EMF comes in at #4 by 3-year correlation. Correlation aside, the last 12 months split them widely, with EMF ahead by 23.5 points (+38.1% versus +61.6%).
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.
EEM vs EMF: side by side
| EEM (iShares MSCI Emerging Markets ETF) | EMF (Templeton Emerging Markets Fund) | |
|---|---|---|
| 1-year return | +38.1% | +61.6% |
| 5-year return | +47.1% | +91.4% |
| Volatility (ann.) | 18.0% | 21.0% |
| Beta vs S&P 500 | 0.85 | 0.93 |
| Max drawdown (3Y) | -17.3% | -19.5% |
| Market cap | – | $0.3B |
| P/E (trailing) | – | 2.4 |
| Dividend yield | 1.73% | 3.91% |
| Expense ratio | 0.72% | – |
| Assets under management | $29.2B | – |
| Sector / category | ETF · International | US Listed |
On the fund side, EEM sits in the Diversified Emerging Mkts category at iShares, with $29.2B under management, 968 holdings, a 0.72% expense ratio, a 1.73% trailing dividend yield.
Year-by-year returns
| Year | EEM | EMF |
|---|---|---|
| 2022 | -20.6% | -21.5% |
| 2023 | +8.9% | +8.8% |
| 2024 | +6.5% | +6.6% |
| 2025 | +34.0% | +58.2% |
| 2026 | +24.2% | +36.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EEM and EMF good diversifiers for each other?
No: a correlation of 0.90 means EEM and EMF tend to fall together, which is precisely when diversification is supposed to help.
FAQ
What is the correlation between EEM and EMF?
Using weekly returns as of 2026-08-27: 0.90 over 3 years, with 0.90 over the last year and 0.91 over 5 years.
Is EMF a good diversifier for EEM?
No: a correlation of 0.90 means EEM and EMF tend to fall together, which is precisely when diversification is supposed to help.
What does a correlation of 0.90 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/eem-vs-emf.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/eem-vs-emf/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: EEM correlations · EMF correlations
