EEM vs MDY: Correlation & Overlap
Measured on weekly returns over the past three years, iShares MSCI Emerging Markets ETF (EEM) and SPDR S&P MidCap 400 ETF (MDY) carry a correlation of 0.60, a strong link. The two funds also share 0.4% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are EEM and MDY?
Across a 3-year window, the weekly returns of EEM and MDY correlate at 0.60, strong. Little has changed lately, as the 1-year reading of 0.63 lands near the 3-year figure. Stretching to 5 years gives 0.60, with an annualized covariance of 178.0 %².
Within EEM's tracked universe of 67 assets, MDY comes in at #33 by 3-year correlation. The last year tells two different stories: EEM led by 19.8 percentage points, +38.1% for EEM against +18.3% for MDY. The rolling one-year correlation moved between 0.42 and 0.76 over the past three years, a moderate range.
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 MDY: side by side
| EEM (iShares MSCI Emerging Markets ETF) | MDY (SPDR S&P MidCap 400 ETF) | |
|---|---|---|
| 1-year return | +38.1% | +18.3% |
| 5-year return | +47.1% | +47.5% |
| Volatility (ann.) | 18.0% | 16.5% |
| Beta vs S&P 500 | 0.85 | 0.91 |
| Max drawdown (3Y) | -17.3% | -24.0% |
| Dividend yield | 1.73% | 1.02% |
| Expense ratio | 0.72% | 0.23% |
| Assets under management | $29.2B | $26.5B |
| Sector / category | ETF · International | ETF · US Small & Mid Cap |
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. MDY, State Street Investment Management's Mid-Cap Blend fund, carries $26.5B under management, 400 holdings, a 0.23% expense ratio, a 1.02% trailing dividend yield.
Portfolio overlap between EEM and MDY
The two portfolios are largely distinct. Weighing the shared positions, 0.4% of the two funds is identical, spread across 4 common holdings. That shared book is a large part of why the returns line up.
Largest positions held only by EEM: 2330 (15.14%), 005930 (7.15%), 000660 (5.45%), 700 (2.83%), 9988 (2.02%). Only by MDY: TWLO (0.95%), P (0.94%), ILMN (0.93%), FTI (0.83%), ATI (0.80%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 4 common positions shown.
Year-by-year returns
| Year | EEM | MDY |
|---|---|---|
| 2022 | -20.6% | -13.3% |
| 2023 | +8.9% | +16.1% |
| 2024 | +6.5% | +13.6% |
| 2025 | +34.0% | +7.2% |
| 2026 | +24.2% | +16.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EEM and MDY good diversifiers for each other?
To a limited degree. At 0.60 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between EEM and MDY?
Using weekly returns as of 2026-08-27: 0.60 over 3 years, with 0.63 over the last year and 0.60 over 5 years.
Is MDY a good diversifier for EEM?
To a limited degree. At 0.60 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
How much do EEM and MDY overlap?
0.4% by weight, across 4 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-mdy.json
Embed this badge (it refreshes with the data), with attribution:
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Related comparisons
Hubs: EEM correlations · MDY correlations
