EEM vs VUG: Correlation & Overlap
Measured on weekly returns over the past three years, iShares MSCI Emerging Markets ETF (EEM) and Vanguard Growth ETF (VUG) carry a correlation of 0.63, a strong link. The two funds also share 0% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are EEM and VUG?
Over the past 3 years, EEM and VUG moved with a correlation of 0.63, which is strong. Recent behaviour matches the longer record: 0.61 over 1 year against 0.63 over 3. Over 5 years the correlation is 0.61, and the annualized covariance of weekly returns is 219.4 %².
By 3-year correlation, VUG places #29 of the 67 assets tracked against EEM. The last year tells two different stories: EEM led by 21.9 percentage points, +38.1% for EEM against +16.2% for VUG. The link looks structural: the rolling one-year correlation barely moved, holding between 0.51 and 0.75.
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 VUG: side by side
| EEM (iShares MSCI Emerging Markets ETF) | VUG (Vanguard Growth ETF) | |
|---|---|---|
| 1-year return | +38.1% | +16.2% |
| 5-year return | +47.1% | +78.4% |
| Volatility (ann.) | 18.0% | 19.4% |
| Beta vs S&P 500 | 0.85 | 1.28 |
| Max drawdown (3Y) | -17.3% | -22.8% |
| Dividend yield | 1.73% | 0.40% |
| Expense ratio | 0.72% | 0.03% |
| Assets under management | $29.2B | $372.0B |
| Sector / category | ETF · International | ETF · US Style |
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. VUG, Vanguard's Large Growth fund, carries $372.0B under management, 146 holdings, a 0.03% expense ratio, a 0.40% trailing dividend yield.
Portfolio overlap between EEM and VUG
The two portfolios are largely distinct. Weighing the shared positions, 0% of the two funds is identical, spread across 0 common holdings. That shared book is a large part of why the returns line up.
Largest positions held only by EEM: 2330 (15.14%), 005930 (7.15%), 000660 (5.45%), 700 (2.83%), 9988 (2.02%). Only by VUG: NVDA (12.84%), AAPL (12.63%), MSFT (9.61%), GOOGL (5.81%), AMZN (5.16%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26.
Year-by-year returns
| Year | EEM | VUG |
|---|---|---|
| 2022 | -20.6% | -33.2% |
| 2023 | +8.9% | +46.8% |
| 2024 | +6.5% | +32.7% |
| 2025 | +34.0% | +19.4% |
| 2026 | +24.2% | +9.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EEM and VUG good diversifiers for each other?
Only partially. A correlation of 0.63 means EEM and VUG share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between EEM and VUG?
The EEM/VUG correlation stands at 0.63 on a 3-year window (1 year: 0.61, 5 years: 0.61), computed from weekly returns as of 2026-08-27.
Is VUG a good diversifier for EEM?
Only partially. A correlation of 0.63 means EEM and VUG share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
How much do EEM and VUG overlap?
0% by weight, across 0 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-vug.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/eem-vs-vug/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: EEM correlations · VUG correlations
