EEM vs VWO: Correlation & Overlap
iShares MSCI Emerging Markets ETF (EEM) and Vanguard FTSE Emerging Markets ETF (VWO) show a very strong relationship: their 3-year correlation of weekly returns is 0.96. The two funds also share 64.1% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are EEM and VWO?
On 3 years of weekly data the EEM/VWO correlation comes out at 0.96, very strong, meaning they move nearly in lockstep. The relationship has been stable: the 1-year correlation (0.94) sits close to the 3-year figure. The 5-year figure is 0.97, and annualized covariance runs at 262.2 %².
VWO is one of the assets that tracks EEM most closely: it ranks #2 out of the 67 assets we track against EEM. The last year tells two different stories: EEM led by 16.5 percentage points, +38.1% for EEM against +21.6% for VWO. The link looks structural: the rolling one-year correlation barely moved, holding between 0.95 and 0.99.
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 VWO: side by side
| EEM (iShares MSCI Emerging Markets ETF) | VWO (Vanguard FTSE Emerging Markets ETF) | |
|---|---|---|
| 1-year return | +38.1% | +21.6% |
| 5-year return | +47.1% | +38.2% |
| Volatility (ann.) | 18.0% | 15.2% |
| Beta vs S&P 500 | 0.85 | 0.75 |
| Max drawdown (3Y) | -17.3% | -17.4% |
| Dividend yield | 1.73% | 2.36% |
| Expense ratio | 0.72% | 0.06% |
| Assets under management | $29.2B | $162.0B |
| Sector / category | ETF · International | ETF · International |
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. On the fund side, VWO sits in the Diversified Emerging Mkts category at Vanguard, with $162.0B under management, 4113 holdings, a 0.06% expense ratio, a 2.36% trailing dividend yield.
Portfolio overlap between EEM and VWO
The two portfolios overlap heavily: 64.1% of the funds' weight sits in the same underlying holdings (688 common positions). Correlation tells you they move together; overlap tells you why.
| Common holding | Weight in EEM | Weight in VWO |
|---|---|---|
| 2330 | 15.14% | 18.65% |
| 700 | 2.83% | 3.97% |
| 9988 | 2.02% | 2.90% |
| 2454 | 1.45% | 1.62% |
| 2308 | 0.87% | 0.99% |
| 939 | 0.80% | 1.07% |
| 2317 | 0.77% | 0.97% |
| 1211 | 0.53% | 0.68% |
| 1398 | 0.51% | 0.80% |
| 3711 | 0.50% | 0.59% |
| 1810 | 0.50% | 0.66% |
| 1120 | 0.44% | 0.51% |
| VALE3 | 0.44% | 0.55% |
| 2383 | 0.43% | 0.43% |
| 3690 | 0.41% | 0.67% |
Largest positions held only by EEM: 005930 (7.15%), 000660 (5.45%), 005935 (0.93%), HDFCBANK (0.72%), RELIANCE (0.67%). Only by VWO: PTT-F (0.15%), 2408 (0.13%), 2344 (0.12%), 8299 (0.09%), TLV (0.09%).
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 | VWO |
|---|---|---|
| 2022 | -20.6% | -18.0% |
| 2023 | +8.9% | +9.3% |
| 2024 | +6.5% | +10.6% |
| 2025 | +34.0% | +25.6% |
| 2026 | +24.2% | +13.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EEM and VWO good diversifiers for each other?
No. With a correlation of 0.96, EEM and VWO move nearly in lockstep, so holding both adds very little diversification. On top of that, 64.1% of their holdings are the same, making the doubling-up even more literal.
FAQ
What is the correlation between EEM and VWO?
As of 2026-08-27, the correlation of weekly returns between EEM and VWO is 0.96 over 3 years, 0.94 over 1 year and 0.97 over 5 years.
Is VWO a good diversifier for EEM?
No. With a correlation of 0.96, EEM and VWO move nearly in lockstep, so holding both adds very little diversification. On top of that, 64.1% of their holdings are the same, making the doubling-up even more literal.
How much do EEM and VWO overlap?
64.1% by weight, across 688 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-vwo.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/eem-vs-vwo/)
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Related comparisons
Hubs: EEM correlations · VWO correlations
