EEM vs VEA: Correlation & Overlap
Measured on weekly returns over the past three years, iShares MSCI Emerging Markets ETF (EEM) and Vanguard FTSE Developed Markets ETF (VEA) carry a correlation of 0.84, a very strong link. The two funds also share 8.3% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are EEM and VEA?
Across a 3-year window, the weekly returns of EEM and VEA correlate at 0.84, very strong, meaning they move nearly in lockstep. The relationship has been stable: the 1-year correlation (0.89) sits close to the 3-year figure. Stretching to 5 years gives 0.83, with an annualized covariance of 228.1 %².
Among the 67 assets we track against EEM, VEA ranks #5 by 3-year correlation. Over the last 12 months EEM came out ahead by 9.6 percentage points (+38.1% against +28.5%). The rolling one-year correlation stayed in a tight band between 0.73 and 0.91 over the past three years, which points to a structural rather than episodic relationship.
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 VEA: side by side
| EEM (iShares MSCI Emerging Markets ETF) | VEA (Vanguard FTSE Developed Markets ETF) | |
|---|---|---|
| 1-year return | +38.1% | +28.5% |
| 5-year return | +47.1% | +63.5% |
| Volatility (ann.) | 18.0% | 15.1% |
| Beta vs S&P 500 | 0.85 | 0.79 |
| Max drawdown (3Y) | -17.3% | -13.5% |
| Dividend yield | 1.73% | 2.56% |
| Expense ratio | 0.72% | 0.03% |
| Assets under management | $29.2B | $314.9B |
| Sector / category | ETF · International | ETF · International |
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. VEA is a Foreign Large Blend fund from Vanguard: $314.9B under management, 3769 holdings, a 0.03% expense ratio, a 2.56% trailing dividend yield.
Portfolio overlap between EEM and VEA
The two portfolios are largely distinct, with 141 holdings in common adding up to 8.3% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
| Common holding | Weight in EEM | Weight in VEA |
|---|---|---|
| 005930 | 7.15% | 2.53% |
| 000660 | 5.45% | 1.98% |
| 005935 | 0.93% | 0.32% |
| 402340 | 0.57% | 0.19% |
| 009150 | 0.44% | 0.13% |
| 105560 | 0.35% | 0.13% |
| 005380 | 0.32% | 0.11% |
| 055550 | 0.26% | 0.09% |
| PKO | 0.22% | 0.08% |
| 992 | 0.23% | 0.07% |
| PKN | 0.19% | 0.07% |
| 086790 | 0.21% | 0.07% |
| 035420 | 0.18% | 0.07% |
| 000270 | 0.18% | 0.07% |
| 012450 | 0.21% | 0.07% |
Largest positions held only by EEM: 2330 (15.14%), 700 (2.83%), 9988 (2.02%), 2454 (1.45%), 2308 (0.87%). Only by VEA: ASML (2.00%), HSBA (1.15%), ROP (0.97%), SAN (0.94%), RY (0.92%).
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 | VEA |
|---|---|---|
| 2022 | -20.6% | -15.3% |
| 2023 | +8.9% | +17.9% |
| 2024 | +6.5% | +3.1% |
| 2025 | +34.0% | +35.2% |
| 2026 | +24.2% | +18.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EEM and VEA good diversifiers for each other?
Not really. At 0.84, the two trade almost as one position, and owning both buys little extra protection.
FAQ
What is the correlation between EEM and VEA?
Using weekly returns as of 2026-08-27: 0.84 over 3 years, with 0.89 over the last year and 0.83 over 5 years.
Is VEA a good diversifier for EEM?
Not really. At 0.84, the two trade almost as one position, and owning both buys little extra protection.
How much do EEM and VEA overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 8.3% by weight over 141 common positions.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/eem-vs-vea.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/eem-vs-vea/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: EEM correlations · VEA correlations
