EEM vs FXI: Correlation & Overlap
How closely do iShares MSCI Emerging Markets ETF (EEM) and iShares China Large-Cap ETF (FXI) trade together? Their weekly returns over three years give a correlation of 0.64, which is strong. By holdings, the two funds overlap 12.7% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are EEM and FXI?
On 3 years of weekly data the EEM/FXI correlation comes out at 0.64, strong. The past 12 months show a weaker link (0.48) than the 3-year average (0.64). The 5-year figure is 0.74, and annualized covariance runs at 291.2 %².
By 3-year correlation, FXI places #27 of the 67 assets tracked against EEM. Their recent paths diverged sharply: over the last 12 months EEM outperformed by 44.2 percentage points (+38.1% for EEM against -6.1% for FXI). Across three years, the rolling one-year figure varied moderately, from 0.50 to 0.91.
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 FXI: side by side
| EEM (iShares MSCI Emerging Markets ETF) | FXI (iShares China Large-Cap ETF) | |
|---|---|---|
| 1-year return | +38.1% | -6.1% |
| 5-year return | +47.1% | -1.4% |
| Volatility (ann.) | 18.0% | 25.3% |
| Beta vs S&P 500 | 0.85 | 0.68 |
| Max drawdown (3Y) | -17.3% | -23.2% |
| Dividend yield | 1.73% | 1.87% |
| Expense ratio | 0.72% | 0.73% |
| Assets under management | $29.2B | $4.3B |
| Sector / category | ETF · International | ETF · International |
EEM, iShares's Diversified Emerging Mkts fund, carries $29.2B under management, 968 holdings, a 0.72% expense ratio, a 1.73% trailing dividend yield. FXI, iShares's Greater China Region fund, carries $4.3B under management, 50 holdings, a 0.73% expense ratio, a 1.87% trailing dividend yield.
Portfolio overlap between EEM and FXI
The two portfolios are largely distinct, with 46 holdings in common adding up to 12.7% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
| Common holding | Weight in EEM | Weight in FXI |
|---|---|---|
| 700 | 2.83% | 8.51% |
| 9988 | 2.02% | 9.72% |
| 939 | 0.80% | 9.09% |
| 1211 | 0.53% | 3.56% |
| 1398 | 0.51% | 6.35% |
| 1810 | 0.50% | 5.16% |
| 3690 | 0.41% | 4.44% |
| 2318 | 0.39% | 3.89% |
| 3988 | 0.39% | 3.91% |
| 9999 | 0.35% | 3.70% |
| 9618 | 0.27% | 2.90% |
| 2899 | 0.24% | 2.38% |
| 857 | 0.22% | 2.16% |
| 2628 | 0.22% | 2.27% |
| 9961 | 0.22% | 2.26% |
Largest positions held only by EEM: 2330 (15.14%), 005930 (7.15%), 000660 (5.45%), 2454 (1.45%), 005935 (0.93%). Only by FXI: 1276 (0.11%), 3986 (0.10%), 6818 (0.10%), 6936 (0.08%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 15 common positions shown.
Year-by-year returns
| Year | EEM | FXI |
|---|---|---|
| 2022 | -20.6% | -20.7% |
| 2023 | +8.9% | -12.4% |
| 2024 | +6.5% | +29.0% |
| 2025 | +34.0% | +28.9% |
| 2026 | +24.2% | -7.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EEM and FXI good diversifiers for each other?
Somewhat, no more. With 0.64 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between EEM and FXI?
Using weekly returns as of 2026-08-27: 0.64 over 3 years, with 0.48 over the last year and 0.74 over 5 years.
Is FXI a good diversifier for EEM?
Somewhat, no more. With 0.64 correlation, most large moves hit both names, and the diversification benefit stays modest.
How much do EEM and FXI overlap?
12.7% by weight, across 46 common holdings, based on issuer-disclosed portfolios as of 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/eem-vs-fxi.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/eem-vs-fxi/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: EEM correlations · FXI correlations
