EEM vs IEMG: Correlation & Overlap
How closely do iShares MSCI Emerging Markets ETF (EEM) and iShares Core MSCI Emerging Markets ETF (IEMG) trade together? Their weekly returns over three years give a correlation of 1.00, which is very strong. The two funds also share 87.1% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are EEM and IEMG?
Over the past 3 years, EEM and IEMG moved with a correlation of 1.00, which is very strong, meaning they move nearly in lockstep. The relationship has been stable: the 1-year correlation (1.00) sits close to the 3-year figure. Over 5 years the correlation is 1.00, and the annualized covariance of weekly returns is 312.8 %².
In EEM's tracked universe of 67 assets, IEMG sits right near the top at #1. Their 12-month results are close: +38.1% for EEM against +36.0% for IEMG. The link looks structural: the rolling one-year correlation barely moved, holding between 1.00 and 1.00.
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 IEMG: side by side
| EEM (iShares MSCI Emerging Markets ETF) | IEMG (iShares Core MSCI Emerging Markets ETF) | |
|---|---|---|
| 1-year return | +38.1% | +36.0% |
| 5-year return | +47.1% | +50.7% |
| Volatility (ann.) | 18.0% | 17.4% |
| Beta vs S&P 500 | 0.85 | 0.84 |
| Max drawdown (3Y) | -17.3% | -17.2% |
| Dividend yield | 1.73% | 2.31% |
| Expense ratio | 0.72% | 0.09% |
| Assets under management | $29.2B | $152.2B |
| Sector / category | ETF · International | ETF · International |
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. IEMG, iShares's Diversified Emerging Mkts fund, carries $152.2B under management, 1824 holdings, a 0.09% expense ratio, a 2.31% trailing dividend yield.
Portfolio overlap between EEM and IEMG
The two portfolios are near-duplicates. Weighing the shared positions, 87.1% of the two funds is identical, spread across 940 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in EEM | Weight in IEMG |
|---|---|---|
| 2330 | 15.14% | 13.28% |
| 005930 | 7.15% | 6.27% |
| 000660 | 5.45% | 4.78% |
| 700 | 2.83% | 2.49% |
| 9988 | 2.02% | 1.77% |
| 2454 | 1.45% | 1.27% |
| 005935 | 0.93% | 0.81% |
| 2308 | 0.87% | 0.76% |
| 939 | 0.80% | 0.70% |
| 2317 | 0.77% | 0.67% |
| HDFCBANK | 0.72% | 0.61% |
| RELIANCE | 0.67% | 0.59% |
| ICICIBANK | 0.63% | 0.55% |
| 402340 | 0.57% | 0.50% |
| 1211 | 0.53% | 0.47% |
Largest positions held only by EEM: 002460 (0.01%), 601881 (0.01%), 000975 (0.01%), 603893 (0.01%), 000426 (0.01%). Only by IEMG: 2408 (0.14%), 2344 (0.12%), 6274 (0.08%), 8299 (0.08%), 3081 (0.06%).
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 | IEMG |
|---|---|---|
| 2022 | -20.6% | -20.0% |
| 2023 | +8.9% | +11.5% |
| 2024 | +6.5% | +6.5% |
| 2025 | +34.0% | +32.6% |
| 2026 | +24.2% | +23.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EEM and IEMG good diversifiers for each other?
Not really. At 1.00, the two trade almost as one position, and owning both buys little extra protection. The 87.1% holdings overlap makes the redundancy concrete: much of it is the same book twice.
FAQ
What is the correlation between EEM and IEMG?
Using weekly returns as of 2026-08-27: 1.00 over 3 years, with 1.00 over the last year and 1.00 over 5 years.
Is IEMG a good diversifier for EEM?
Not really. At 1.00, the two trade almost as one position, and owning both buys little extra protection. The 87.1% holdings overlap makes the redundancy concrete: much of it is the same book twice.
How much do EEM and IEMG overlap?
87.1% by weight, across 940 common holdings, based on issuer-disclosed portfolios as of 2026-08-26.
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Related comparisons
Hubs: EEM correlations · IEMG correlations
