EEM vs VIG: Correlation & Overlap
Measured on weekly returns over the past three years, iShares MSCI Emerging Markets ETF (EEM) and Vanguard Dividend Appreciation ETF (VIG) carry a correlation of 0.59, a moderate link. 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 VIG?
Over the past 3 years, EEM and VIG moved with a correlation of 0.59, which is moderate. The relationship has been stable: the 1-year correlation (0.55) sits close to the 3-year figure. Over 5 years the correlation is 0.57, and the annualized covariance of weekly returns is 127.1 %².
Among the 67 assets we track against EEM, VIG ranks #34 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months EEM outperformed by 21.0 percentage points (+38.1% for EEM against +17.1% for VIG). Across three years, the rolling one-year figure varied moderately, from 0.46 to 0.77. One caveat on sizing: EEM is 1.5 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 VIG: side by side
| EEM (iShares MSCI Emerging Markets ETF) | VIG (Vanguard Dividend Appreciation ETF) | |
|---|---|---|
| 1-year return | +38.1% | +17.1% |
| 5-year return | +47.1% | +64.0% |
| Volatility (ann.) | 18.0% | 11.9% |
| Beta vs S&P 500 | 0.85 | 0.74 |
| Max drawdown (3Y) | -17.3% | -15.0% |
| Dividend yield | 1.73% | 1.50% |
| Expense ratio | 0.72% | 0.04% |
| Assets under management | $29.2B | $130.9B |
| Sector / category | ETF · International | ETF · Dividend |
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. VIG, Vanguard's Large Blend fund, carries $130.9B under management, 333 holdings, a 0.04% expense ratio, a 1.50% trailing dividend yield.
Portfolio overlap between EEM and VIG
The two portfolios are largely distinct: 0.0% of the funds' weight sits in the same underlying holdings (3 common positions). Correlation tells you they move together; overlap tells you why.
Largest positions held only by EEM: 2330 (15.14%), 005930 (7.15%), 000660 (5.45%), 700 (2.83%), 9988 (2.02%). Only by VIG: AVGO (4.65%), AAPL (4.47%), MSFT (4.35%), JPM (4.09%), LLY (3.94%).
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 | VIG |
|---|---|---|
| 2022 | -20.6% | -9.8% |
| 2023 | +8.9% | +14.5% |
| 2024 | +6.5% | +17.0% |
| 2025 | +34.0% | +14.2% |
| 2026 | +24.2% | +11.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EEM and VIG good diversifiers for each other?
Somewhat, no more. With 0.59 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between EEM and VIG?
The EEM/VIG correlation stands at 0.59 on a 3-year window (1 year: 0.55, 5 years: 0.57), computed from weekly returns as of 2026-08-27.
Is VIG a good diversifier for EEM?
Somewhat, no more. With 0.59 correlation, most large moves hit both names, and the diversification benefit stays modest.
How much do EEM and VIG overlap?
0.0% by weight, across 3 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-vig.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/eem-vs-vig/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: EEM correlations · VIG correlations
