EEM vs IBB: Correlation & Overlap
How closely do iShares MSCI Emerging Markets ETF (EEM) and iShares Biotechnology ETF (IBB) trade together? Their weekly returns over three years give a correlation of 0.46, 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 EEM and IBB?
Over the past 3 years, EEM and IBB moved with a correlation of 0.46, which is moderate. The past 12 months show a weaker link (0.29) than the 3-year average (0.46). Over 5 years the correlation is 0.47, and the annualized covariance of weekly returns is 172.8 %².
By 3-year correlation, IBB places #48 of the 67 assets tracked against EEM. The last year tells two different stories: IBB led by 17.3 percentage points, +38.1% for EEM against +55.4% for IBB. On a rolling one-year basis the correlation drifted between 0.28 and 0.72, a moderate band.
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 IBB: side by side
| EEM (iShares MSCI Emerging Markets ETF) | IBB (iShares Biotechnology ETF) | |
|---|---|---|
| 1-year return | +38.1% | +55.4% |
| 5-year return | +47.1% | +26.6% |
| Volatility (ann.) | 18.0% | 20.7% |
| Beta vs S&P 500 | 0.85 | 0.81 |
| Max drawdown (3Y) | -17.3% | -24.9% |
| Dividend yield | 1.73% | 0.22% |
| Expense ratio | 0.72% | 0.44% |
| Assets under management | $29.2B | $9.2B |
| Sector / category | ETF · International | ETF · Thematic |
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. IBB, iShares's Health fund, carries $9.2B under management, 235 holdings, a 0.44% expense ratio, a 0.22% trailing dividend yield.
Portfolio overlap between EEM and IBB
The two portfolios are largely distinct, with 1 holdings in common adding up to 0.0% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
| Common holding | Weight in EEM | Weight in IBB |
|---|---|---|
| LEGN | 0.01% | 0.21% |
Largest positions held only by EEM: 2330 (15.14%), 005930 (7.15%), 000660 (5.45%), 700 (2.83%), 9988 (2.02%). Only by IBB: AMGN (8.43%), VRTX (7.89%), GILD (7.10%), REGN (5.68%), MRNA (3.76%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 1 common positions shown.
Year-by-year returns
| Year | EEM | IBB |
|---|---|---|
| 2022 | -20.6% | -13.7% |
| 2023 | +8.9% | +3.8% |
| 2024 | +6.5% | -2.4% |
| 2025 | +34.0% | +28.0% |
| 2026 | +24.2% | +27.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EEM and IBB good diversifiers for each other?
Reasonably. At 0.46, EEM and IBB keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between EEM and IBB?
The EEM/IBB correlation stands at 0.46 on a 3-year window (1 year: 0.29, 5 years: 0.47), computed from weekly returns as of 2026-08-27.
Is IBB a good diversifier for EEM?
Reasonably. At 0.46, EEM and IBB keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
How much do EEM and IBB overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 0.0% by weight over 1 common positions.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/eem-vs-ibb.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/eem-vs-ibb/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: EEM correlations · IBB correlations
