EEM vs USMV: Correlation & Overlap
How closely do iShares MSCI Emerging Markets ETF (EEM) and iShares MSCI USA Min Vol Factor ETF (USMV) trade together? Their weekly returns over three years give a correlation of 0.43, which is moderate. By holdings, the two funds overlap 0.0% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are EEM and USMV?
On 3 years of weekly data the EEM/USMV correlation comes out at 0.43, moderate. The link has loosened recently: the 1-year correlation (0.21) runs below the 3-year figure (0.43). The 5-year figure is 0.45, and annualized covariance runs at 76.5 %².
Among the 67 assets we track against EEM, USMV ranks #49 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months EEM outperformed by 28.0 percentage points (+38.1% for EEM against +10.1% for USMV). On a rolling one-year basis the correlation drifted between 0.20 and 0.65, a moderate band. One caveat on sizing: EEM is 1.8 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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 USMV: side by side
| EEM (iShares MSCI Emerging Markets ETF) | USMV (iShares MSCI USA Min Vol Factor ETF) | |
|---|---|---|
| 1-year return | +38.1% | +10.1% |
| 5-year return | +47.1% | +42.3% |
| Volatility (ann.) | 18.0% | 9.9% |
| Beta vs S&P 500 | 0.85 | 0.51 |
| Max drawdown (3Y) | -17.3% | -9.4% |
| Dividend yield | 1.73% | 1.48% |
| Expense ratio | 0.72% | 0.15% |
| Assets under management | $29.2B | $23.6B |
| Sector / category | ETF · International | ETF · US Style |
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. USMV, iShares's Large Blend fund, carries $23.6B under management, 164 holdings, a 0.15% expense ratio, a 1.48% trailing dividend yield.
Portfolio overlap between EEM and USMV
The two portfolios are largely distinct. Weighing the shared positions, 0.0% of the two funds is identical, spread across 1 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in EEM | Weight in USMV |
|---|---|---|
| TEL | 0.01% | 0.53% |
Largest positions held only by EEM: 2330 (15.14%), 005930 (7.15%), 000660 (5.45%), 700 (2.83%), 9988 (2.02%). Only by USMV: MSFT (1.68%), NEM (1.65%), VRTX (1.63%), JNJ (1.58%), WELL (1.57%).
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 | USMV |
|---|---|---|
| 2022 | -20.6% | -9.4% |
| 2023 | +8.9% | +10.3% |
| 2024 | +6.5% | +15.7% |
| 2025 | +34.0% | +7.6% |
| 2026 | +24.2% | +9.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EEM and USMV good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.43 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between EEM and USMV?
The EEM/USMV correlation stands at 0.43 on a 3-year window (1 year: 0.21, 5 years: 0.45), computed from weekly returns as of 2026-08-27.
Is USMV a good diversifier for EEM?
Yes, to a useful degree: a correlation of 0.43 leaves real independence between the two, which historically damped combined volatility.
How much do EEM and USMV overlap?
0.0% by weight, across 1 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-usmv.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/eem-vs-usmv/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: EEM correlations · USMV correlations
