EEM vs VNQ: Correlation & Overlap
How closely do iShares MSCI Emerging Markets ETF (EEM) and Vanguard Real Estate ETF (VNQ) trade together? Their weekly returns over three years give a correlation of 0.38, which is moderate. The two funds also share 0.0% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are EEM and VNQ?
On 3 years of weekly data the EEM/VNQ correlation comes out at 0.38, moderate. The link has loosened recently: the 1-year correlation (0.25) runs below the 3-year figure (0.38). The 5-year figure is 0.43, and annualized covariance runs at 112.3 %².
By 3-year correlation, VNQ places #51 of the 67 assets tracked against EEM. Correlation aside, the last 12 months split them widely, with EEM ahead by 27.8 points (+38.1% versus +10.3%). On a rolling one-year basis the correlation drifted between 0.26 and 0.68, a moderate band.
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 VNQ: side by side
| EEM (iShares MSCI Emerging Markets ETF) | VNQ (Vanguard Real Estate ETF) | |
|---|---|---|
| 1-year return | +38.1% | +10.3% |
| 5-year return | +47.1% | +9.5% |
| Volatility (ann.) | 18.0% | 16.6% |
| Beta vs S&P 500 | 0.85 | 0.59 |
| Max drawdown (3Y) | -17.3% | -17.5% |
| Dividend yield | 1.73% | 3.51% |
| Expense ratio | 0.72% | 0.13% |
| Assets under management | $29.2B | $73.1B |
| Sector / category | ETF · International | ETF · Real Estate |
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. VNQ is a Real Estate fund from Vanguard: $73.1B under management, 140 holdings, a 0.13% expense ratio, a 3.51% trailing dividend yield.
Portfolio overlap between EEM and VNQ
The two portfolios are largely distinct, with 1 holdings in common adding up to 0.0% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
| Common holding | Weight in EEM | Weight in VNQ |
|---|---|---|
| OUT | 0.03% | 0.26% |
Largest positions held only by EEM: 2330 (15.14%), 005930 (7.15%), 000660 (5.45%), 700 (2.83%), 9988 (2.02%). Only by VNQ: VRTPX (14.54%), WELL (8.54%), PLD (7.04%), EQIX (5.25%), AMT (4.22%).
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 | VNQ |
|---|---|---|
| 2022 | -20.6% | -26.3% |
| 2023 | +8.9% | +11.9% |
| 2024 | +6.5% | +4.8% |
| 2025 | +34.0% | +3.2% |
| 2026 | +24.2% | +12.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EEM and VNQ good diversifiers for each other?
A fair diversifier. At 0.38, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between EEM and VNQ?
As of 2026-08-27, the correlation of weekly returns between EEM and VNQ is 0.38 over 3 years, 0.25 over 1 year and 0.43 over 5 years.
Is VNQ a good diversifier for EEM?
A fair diversifier. At 0.38, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
How much do EEM and VNQ overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 0.0% by weight over 1 common positions.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/eem-vs-vnq.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/eem-vs-vnq/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: EEM correlations · VNQ correlations
