EEM vs ICLN: Correlation & Overlap
How closely do iShares MSCI Emerging Markets ETF (EEM) and iShares Global Clean Energy ETF (ICLN) trade together? Their weekly returns over three years give a correlation of 0.58, which is moderate. Looking through to holdings, 0.3% 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 ICLN?
Across a 3-year window, the weekly returns of EEM and ICLN correlate at 0.58, moderate. Recent behaviour matches the longer record: 0.58 over 1 year against 0.58 over 3. Stretching to 5 years gives 0.54, with an annualized covariance of 249.8 %².
Within EEM's tracked universe of 67 assets, ICLN comes in at #37 by 3-year correlation. The trailing year gives EEM the advantage: +38.1% versus +25.6%, a 12.5-point spread. The link looks structural: the rolling one-year correlation barely moved, holding between 0.44 and 0.69.
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 ICLN: side by side
| EEM (iShares MSCI Emerging Markets ETF) | ICLN (iShares Global Clean Energy ETF) | |
|---|---|---|
| 1-year return | +38.1% | +25.6% |
| 5-year return | +47.1% | -18.4% |
| Volatility (ann.) | 18.0% | 24.0% |
| Beta vs S&P 500 | 0.85 | 0.78 |
| Max drawdown (3Y) | -17.3% | -34.6% |
| Dividend yield | 1.73% | 1.05% |
| Expense ratio | 0.72% | 0.39% |
| Assets under management | $29.2B | $2.3B |
| Sector / category | ETF · International | ETF · Thematic |
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. ICLN, iShares's Miscellaneous Sector fund, carries $2.3B under management, 102 holdings, a 0.39% expense ratio, a 1.05% trailing dividend yield.
Portfolio overlap between EEM and ICLN
The two portfolios are largely distinct, with 11 holdings in common adding up to 0.3% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
| Common holding | Weight in EEM | Weight in ICLN |
|---|---|---|
| EQTL3 | 0.06% | 3.09% |
| 600900 | 0.05% | 7.64% |
| SUZLON | 0.04% | 1.99% |
| ENGI11 | 0.02% | 1.35% |
| WAAREEENER | 0.02% | 0.81% |
| NHPC | 0.02% | 0.72% |
| CPFE3 | 0.01% | 0.91% |
| EGIE3 | 0.01% | 0.59% |
| 600905 | 0.01% | 1.18% |
| 916 | 0.01% | 1.25% |
| 601012 | 0.01% | 1.03% |
Largest positions held only by EEM: 2330 (15.14%), 005930 (7.15%), 000660 (5.45%), 700 (2.83%), 9988 (2.02%). Only by ICLN: FSLR (7.87%), BE (7.36%), NXT (6.81%), ENPH (4.70%), VWS (4.36%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 11 common positions shown.
Year-by-year returns
| Year | EEM | ICLN |
|---|---|---|
| 2022 | -20.6% | -5.4% |
| 2023 | +8.9% | -20.4% |
| 2024 | +6.5% | -25.7% |
| 2025 | +34.0% | +47.0% |
| 2026 | +24.2% | +8.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EEM and ICLN good diversifiers for each other?
Only partially. A correlation of 0.58 means EEM and ICLN share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between EEM and ICLN?
As of 2026-08-27, the correlation of weekly returns between EEM and ICLN is 0.58 over 3 years, 0.58 over 1 year and 0.54 over 5 years.
Is ICLN a good diversifier for EEM?
Only partially. A correlation of 0.58 means EEM and ICLN share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
How much do EEM and ICLN overlap?
0.3% by weight, across 11 common holdings, based on issuer-disclosed portfolios as of 2026-08-26.
Use this data
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Related comparisons
Hubs: EEM correlations · ICLN correlations
