EEM vs SPY: Correlation & Overlap
Measured on weekly returns over the past three years, iShares MSCI Emerging Markets ETF (EEM) and SPDR S&P 500 ETF Trust (SPY) carry a correlation of 0.69, a strong link. The two funds also share 0.1% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are EEM and SPY?
Across a 3-year window, the weekly returns of EEM and SPY correlate at 0.69, strong. The relationship has been stable: the 1-year correlation (0.71) sits close to the 3-year figure. Stretching to 5 years gives 0.65, with an annualized covariance of 178.2 %².
Within EEM's tracked universe of 67 assets, SPY comes in at #20 by 3-year correlation. Correlation aside, the last 12 months split them widely, with EEM ahead by 17.5 points (+38.1% versus +20.6%). The link looks structural: the rolling one-year correlation barely moved, holding between 0.56 and 0.78.
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 SPY: side by side
| EEM (iShares MSCI Emerging Markets ETF) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | +38.1% | +20.6% |
| 5-year return | +47.1% | +82.4% |
| Volatility (ann.) | 18.0% | 14.5% |
| Beta vs S&P 500 | 0.85 | 1.00 |
| Max drawdown (3Y) | -17.3% | -18.8% |
| Dividend yield | 1.73% | 1.01% |
| Expense ratio | 0.72% | 0.09% |
| Assets under management | $29.2B | $795.3B |
| Sector / category | ETF · International | ETF · US Large Cap |
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. SPY is a Large Blend fund from State Street Investment Management: $795.3B under management, 504 holdings, a 0.09% expense ratio, a 1.01% trailing dividend yield.
Portfolio overlap between EEM and SPY
The two portfolios are largely distinct, with 3 holdings in common adding up to 0.1% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
Largest positions held only by EEM: 2330 (15.14%), 005930 (7.15%), 000660 (5.45%), 700 (2.83%), 9988 (2.02%). Only by SPY: NVDA (7.68%), AAPL (6.96%), MSFT (5.58%), AMZN (3.85%), GOOGL (3.03%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 3 common positions shown.
Year-by-year returns
| Year | EEM | SPY |
|---|---|---|
| 2022 | -20.6% | -18.2% |
| 2023 | +8.9% | +26.2% |
| 2024 | +6.5% | +24.9% |
| 2025 | +34.0% | +17.7% |
| 2026 | +24.2% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EEM and SPY good diversifiers for each other?
Only partially. A correlation of 0.69 means EEM and SPY 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 SPY?
Using weekly returns as of 2026-08-27: 0.69 over 3 years, with 0.71 over the last year and 0.65 over 5 years.
Is SPY a good diversifier for EEM?
Only partially. A correlation of 0.69 means EEM and SPY share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
How much do EEM and SPY overlap?
0.1% by weight, across 3 common holdings, based on issuer-disclosed portfolios as of 2026-08-26.
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Hubs: EEM correlations · SPY correlations
