EEM vs VOO: Correlation & Overlap
How closely do iShares MSCI Emerging Markets ETF (EEM) and Vanguard S&P 500 ETF (VOO) trade together? Their weekly returns over three years give a correlation of 0.69, which is strong. 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 VOO?
On 3 years of weekly data the EEM/VOO correlation comes out at 0.69, strong. The relationship has been stable: the 1-year correlation (0.71) sits close to the 3-year figure. The 5-year figure is 0.65, and annualized covariance runs at 177.6 %².
By 3-year correlation, VOO places #21 of the 67 assets tracked against EEM. The last year tells two different stories: EEM led by 17.5 percentage points, +38.1% for EEM against +20.6% for VOO. The rolling one-year correlation stayed in a tight band between 0.56 and 0.78 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 VOO: side by side
| EEM (iShares MSCI Emerging Markets ETF) | VOO (Vanguard S&P 500 ETF) | |
|---|---|---|
| 1-year return | +38.1% | +20.6% |
| 5-year return | +47.1% | +83.0% |
| Volatility (ann.) | 18.0% | 14.4% |
| Beta vs S&P 500 | 0.85 | 0.99 |
| Max drawdown (3Y) | -17.3% | -18.7% |
| Dividend yield | 1.73% | 1.07% |
| Expense ratio | 0.72% | 0.03% |
| Assets under management | $29.2B | $1,686.9B |
| Sector / category | ETF · International | ETF · US Large Cap |
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. VOO, Vanguard's Large Blend fund, carries $1,686.9B under management, 503 holdings, a 0.03% expense ratio, a 1.07% trailing dividend yield.
Portfolio overlap between EEM and VOO
The two portfolios are largely distinct: 0.1% 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 VOO: NVDA (7.56%), AAPL (7.05%), MSFT (5.37%), AMZN (4.13%), GOOGL (3.25%).
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 | VOO |
|---|---|---|
| 2022 | -20.6% | -18.2% |
| 2023 | +8.9% | +26.3% |
| 2024 | +6.5% | +25.0% |
| 2025 | +34.0% | +17.8% |
| 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 VOO good diversifiers for each other?
Somewhat, no more. With 0.69 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between EEM and VOO?
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 VOO a good diversifier for EEM?
Somewhat, no more. With 0.69 correlation, most large moves hit both names, and the diversification benefit stays modest.
How much do EEM and VOO overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 0.1% by weight over 3 common positions.
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Hubs: EEM correlations · VOO correlations
