EMF vs VWO: Correlation
Templeton Emerging Markets Fund (EMF) and Vanguard FTSE Emerging Markets ETF (VWO) show a very strong relationship: their 3-year correlation of weekly returns is 0.86.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are EMF and VWO?
Over the past 3 years, EMF and VWO moved with a correlation of 0.86, which is very strong, meaning they move nearly in lockstep. The relationship has been stable: the 1-year correlation (0.85) sits close to the 3-year figure. Over 5 years the correlation is 0.88, and the annualized covariance of weekly returns is 272.2 %².
Among the 21 assets we track against EMF, VWO ranks #4 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months EMF outperformed by 40.0 percentage points (+61.6% for EMF against +21.6% for VWO).
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.
EMF vs VWO: side by side
| EMF (Templeton Emerging Markets Fund) | VWO (Vanguard FTSE Emerging Markets ETF) | |
|---|---|---|
| 1-year return | +61.6% | +21.6% |
| 5-year return | +91.4% | +38.2% |
| Volatility (ann.) | 21.0% | 15.2% |
| Beta vs S&P 500 | 0.93 | 0.75 |
| Max drawdown (3Y) | -19.5% | -17.4% |
| Market cap | $0.3B | – |
| P/E (trailing) | 2.4 | – |
| Dividend yield | 3.91% | 2.36% |
| Expense ratio | – | 0.06% |
| Assets under management | – | $162.0B |
| Sector / category | US Listed | ETF · International |
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.
Year-by-year returns
| Year | EMF | VWO |
|---|---|---|
| 2022 | -21.5% | -18.0% |
| 2023 | +8.8% | +9.3% |
| 2024 | +6.6% | +10.6% |
| 2025 | +58.2% | +25.6% |
| 2026 | +36.1% | +13.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EMF and VWO good diversifiers for each other?
No: a correlation of 0.86 means EMF and VWO tend to fall together, which is precisely when diversification is supposed to help.
FAQ
What is the correlation between EMF and VWO?
Using weekly returns as of 2026-08-27: 0.86 over 3 years, with 0.85 over the last year and 0.88 over 5 years.
Is VWO a good diversifier for EMF?
No: a correlation of 0.86 means EMF and VWO tend to fall together, which is precisely when diversification is supposed to help.
What does a correlation of 0.86 mean?
A reading of 0.86 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/emf-vs-vwo.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/emf-vs-vwo/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: EMF correlations · VWO correlations
