EEM vs VT: Correlation & Overlap
Measured on weekly returns over the past three years, iShares MSCI Emerging Markets ETF (EEM) and Vanguard Total World Stock ETF (VT) carry a correlation of 0.81, a very strong link. By holdings, the two funds overlap 9.7% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are EEM and VT?
On 3 years of weekly data the EEM/VT correlation comes out at 0.81, very strong, meaning they move nearly in lockstep. Little has changed lately, as the 1-year reading of 0.86 lands near the 3-year figure. The 5-year figure is 0.78, and annualized covariance runs at 201.9 %².
By 3-year correlation, VT places #7 of the 67 assets tracked against EEM. Correlation aside, the last 12 months split them widely, with EEM ahead by 15.4 points (+38.1% versus +22.7%). The rolling one-year correlation stayed in a tight band between 0.72 and 0.89 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 VT: side by side
| EEM (iShares MSCI Emerging Markets ETF) | VT (Vanguard Total World Stock ETF) | |
|---|---|---|
| 1-year return | +38.1% | +22.7% |
| 5-year return | +47.1% | +67.7% |
| Volatility (ann.) | 18.0% | 13.9% |
| Beta vs S&P 500 | 0.85 | 0.92 |
| Max drawdown (3Y) | -17.3% | -16.5% |
| Dividend yield | 1.73% | 1.59% |
| Expense ratio | 0.72% | 0.06% |
| Assets under management | $29.2B | $97.9B |
| Sector / category | ETF · International | ETF · Global |
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. VT is a Global Large-Stock Blend fund from Vanguard: $97.9B under management, 5308 holdings, a 0.06% expense ratio, a 1.59% trailing dividend yield.
Portfolio overlap between EEM and VT
The two portfolios are largely distinct. Weighing the shared positions, 9.7% of the two funds is identical, spread across 775 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in EEM | Weight in VT |
|---|---|---|
| 2330 | 15.14% | 1.61% |
| 005930 | 7.15% | 0.72% |
| 000660 | 5.45% | 0.56% |
| 700 | 2.83% | 0.34% |
| 9988 | 2.02% | 0.25% |
| 2454 | 1.45% | 0.14% |
| 939 | 0.80% | 0.09% |
| 005935 | 0.93% | 0.09% |
| 2308 | 0.87% | 0.08% |
| 2317 | 0.77% | 0.08% |
| 1398 | 0.51% | 0.07% |
| PDD | 0.40% | 0.06% |
| 1211 | 0.53% | 0.06% |
| 3690 | 0.41% | 0.06% |
| 1810 | 0.50% | 0.06% |
Largest positions held only by EEM: HDFCBANK (0.72%), RELIANCE (0.67%), ICICIBANK (0.63%), BHARTIARTL (0.44%), GMEXICOB (0.33%). Only by VT: NVDA (4.20%), AAPL (4.00%), MSFT (3.09%), AMZN (2.36%), GOOGL (1.89%).
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 | VT |
|---|---|---|
| 2022 | -20.6% | -18.0% |
| 2023 | +8.9% | +22.0% |
| 2024 | +6.5% | +16.5% |
| 2025 | +34.0% | +22.4% |
| 2026 | +24.2% | +15.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EEM and VT good diversifiers for each other?
No: a correlation of 0.81 means EEM and VT tend to fall together, which is precisely when diversification is supposed to help.
FAQ
What is the correlation between EEM and VT?
The EEM/VT correlation stands at 0.81 on a 3-year window (1 year: 0.86, 5 years: 0.78), computed from weekly returns as of 2026-08-27.
Is VT a good diversifier for EEM?
No: a correlation of 0.81 means EEM and VT tend to fall together, which is precisely when diversification is supposed to help.
How much do EEM and VT overlap?
9.7% by weight, across 775 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-vt.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/eem-vs-vt/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: EEM correlations · VT correlations
