EEM vs ETO: Correlation
iShares MSCI Emerging Markets ETF (EEM) and Eaton Vance Tax-Advantage Global Dividend Opp (ETO) show a strong relationship: their 3-year correlation of weekly returns is 0.74.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are EEM and ETO?
Over the past 3 years, EEM and ETO moved with a correlation of 0.74, which is strong. The relationship has been stable: the 1-year correlation (0.72) sits close to the 3-year figure. Over 5 years the correlation is 0.65, and the annualized covariance of weekly returns is 220.2 %².
Within EEM's tracked universe of 67 assets, ETO comes in at #15 by 3-year correlation. The trailing year gives EEM the advantage: +38.1% versus +24.4%, a 13.7-point spread.
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 ETO: side by side
| EEM (iShares MSCI Emerging Markets ETF) | ETO (Eaton Vance Tax-Advantage Global Dividend Opp) | |
|---|---|---|
| 1-year return | +38.1% | +24.4% |
| 5-year return | +47.1% | +43.6% |
| Volatility (ann.) | 18.0% | 16.6% |
| Beta vs S&P 500 | 0.85 | 1.02 |
| Max drawdown (3Y) | -17.3% | -18.2% |
| Market cap | – | $0.5B |
| P/E (trailing) | – | 3.8 |
| Dividend yield | 1.73% | 6.57% |
| Expense ratio | 0.72% | – |
| Assets under management | $29.2B | – |
| Sector / category | ETF · International | US Listed |
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 | EEM | ETO |
|---|---|---|
| 2022 | -20.6% | -30.0% |
| 2023 | +8.9% | +21.5% |
| 2024 | +6.5% | +15.5% |
| 2025 | +34.0% | +29.9% |
| 2026 | +24.2% | +9.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EEM and ETO good diversifiers for each other?
Somewhat, no more. With 0.74 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between EEM and ETO?
Using weekly returns as of 2026-08-27: 0.74 over 3 years, with 0.72 over the last year and 0.65 over 5 years.
Is ETO a good diversifier for EEM?
Somewhat, no more. With 0.74 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.74 mean?
A reading of 0.74 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/eem-vs-eto.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/eem-vs-eto/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: EEM correlations · ETO correlations
