EEM vs VYM: Correlation & Overlap
iShares MSCI Emerging Markets ETF (EEM) and Vanguard High Dividend Yield ETF (VYM) show a moderate relationship: their 3-year correlation of weekly returns is 0.57. The two funds also share 0.4% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are EEM and VYM?
Across a 3-year window, the weekly returns of EEM and VYM correlate at 0.57, moderate. Little has changed lately, as the 1-year reading of 0.53 lands near the 3-year figure. Stretching to 5 years gives 0.55, with an annualized covariance of 126.3 %².
Among the 67 assets we track against EEM, VYM ranks #42 by 3-year correlation. Correlation aside, the last 12 months split them widely, with EEM ahead by 17.0 points (+38.1% versus +21.1%). The rolling one-year correlation moved between 0.42 and 0.76 over the past three years, a moderate range.
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 VYM: side by side
| EEM (iShares MSCI Emerging Markets ETF) | VYM (Vanguard High Dividend Yield ETF) | |
|---|---|---|
| 1-year return | +38.1% | +21.1% |
| 5-year return | +47.1% | +76.6% |
| Volatility (ann.) | 18.0% | 12.3% |
| Beta vs S&P 500 | 0.85 | 0.69 |
| Max drawdown (3Y) | -17.3% | -14.5% |
| Dividend yield | 1.73% | 2.24% |
| Expense ratio | 0.72% | 0.04% |
| Assets under management | $29.2B | $99.2B |
| Sector / category | ETF · International | ETF · Dividend |
EEM, iShares's Diversified Emerging Mkts fund, carries $29.2B under management, 968 holdings, a 0.72% expense ratio, a 1.73% trailing dividend yield. VYM, Vanguard's Large Value fund, carries $99.2B under management, 604 holdings, a 0.04% expense ratio, a 2.24% trailing dividend yield.
Portfolio overlap between EEM and VYM
The two portfolios are largely distinct: 0.4% of the funds' weight sits in the same underlying holdings (11 common positions). Correlation tells you they move together; overlap tells you why.
| Common holding | Weight in EEM | Weight in VYM |
|---|---|---|
| BAP | 0.21% | 0.11% |
| HAL | 0.07% | 0.11% |
| SCCO | 0.16% | 0.07% |
| XP | 0.06% | 0.03% |
| MTN | 0.17% | 0.02% |
| BDX | 0.02% | 0.19% |
| SM | 0.02% | 0.03% |
| SLM | 0.08% | 0.02% |
| TEL | 0.01% | 0.24% |
| AUGO | 0.02% | 0.01% |
| HTO | 0.03% | 0.01% |
Largest positions held only by EEM: 2330 (15.14%), 005930 (7.15%), 000660 (5.45%), 700 (2.83%), 9988 (2.02%). Only by VYM: AVGO (7.37%), JPM (3.83%), XOM (2.63%), JNJ (2.51%), CSCO (1.87%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 11 common positions shown.
Year-by-year returns
| Year | EEM | VYM |
|---|---|---|
| 2022 | -20.6% | -0.4% |
| 2023 | +8.9% | +6.6% |
| 2024 | +6.5% | +17.6% |
| 2025 | +34.0% | +15.4% |
| 2026 | +24.2% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EEM and VYM good diversifiers for each other?
Only partially. A correlation of 0.57 means EEM and VYM 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 VYM?
As of 2026-08-27, the correlation of weekly returns between EEM and VYM is 0.57 over 3 years, 0.53 over 1 year and 0.55 over 5 years.
Is VYM a good diversifier for EEM?
Only partially. A correlation of 0.57 means EEM and VYM share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
How much do EEM and VYM overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 0.4% by weight over 11 common positions.
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