FXI vs IEMG: Correlation & Overlap
How closely do iShares China Large-Cap ETF (FXI) and iShares Core MSCI Emerging Markets ETF (IEMG) trade together? Their weekly returns over three years give a correlation of 0.63, which is strong. By holdings, the two funds overlap 11.2% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are FXI and IEMG?
On 3 years of weekly data the FXI/IEMG correlation comes out at 0.63, strong. The link has loosened recently: the 1-year correlation (0.47) runs below the 3-year figure (0.63). The 5-year figure is 0.73, and annualized covariance runs at 276.1 %².
Within FXI's tracked universe of 74 assets, IEMG comes in at #7 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months IEMG outperformed by 42.1 percentage points (-6.1% for FXI against +36.0% for IEMG). Across three years, the rolling one-year figure varied moderately, from 0.50 to 0.90.
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.
FXI vs IEMG: side by side
| FXI (iShares China Large-Cap ETF) | IEMG (iShares Core MSCI Emerging Markets ETF) | |
|---|---|---|
| 1-year return | -6.1% | +36.0% |
| 5-year return | -1.4% | +50.7% |
| Volatility (ann.) | 25.3% | 17.4% |
| Beta vs S&P 500 | 0.68 | 0.84 |
| Max drawdown (3Y) | -23.2% | -17.2% |
| Dividend yield | 1.87% | 2.31% |
| Expense ratio | 0.73% | 0.09% |
| Assets under management | $4.3B | $152.2B |
| Sector / category | ETF · International | ETF · International |
FXI, iShares's Greater China Region fund, carries $4.3B under management, 50 holdings, a 0.73% expense ratio, a 1.87% trailing dividend yield. IEMG, iShares's Diversified Emerging Mkts fund, carries $152.2B under management, 1824 holdings, a 0.09% expense ratio, a 2.31% trailing dividend yield.
Portfolio overlap between FXI and IEMG
The two portfolios are largely distinct, with 46 holdings in common adding up to 11.2% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
| Common holding | Weight in FXI | Weight in IEMG |
|---|---|---|
| 700 | 8.51% | 2.49% |
| 9988 | 9.72% | 1.77% |
| 939 | 9.09% | 0.70% |
| 1211 | 3.56% | 0.47% |
| 1810 | 5.16% | 0.45% |
| 1398 | 6.35% | 0.44% |
| 3690 | 4.44% | 0.36% |
| 2318 | 3.89% | 0.34% |
| 3988 | 3.91% | 0.34% |
| 9999 | 3.70% | 0.31% |
| 9618 | 2.90% | 0.23% |
| 2899 | 2.38% | 0.20% |
| 2628 | 2.27% | 0.20% |
| 857 | 2.16% | 0.19% |
| 9961 | 2.26% | 0.19% |
Largest positions held only by FXI: 1276 (0.11%), 3986 (0.10%), 6818 (0.10%), 6936 (0.08%). Only by IEMG: 2330 (13.28%), 005930 (6.27%), 000660 (4.78%), 2454 (1.27%), 005935 (0.81%).
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 | FXI | IEMG |
|---|---|---|
| 2022 | -20.7% | -20.0% |
| 2023 | -12.4% | +11.5% |
| 2024 | +29.0% | +6.5% |
| 2025 | +28.9% | +32.6% |
| 2026 | -7.3% | +23.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are FXI and IEMG good diversifiers for each other?
Somewhat, no more. With 0.63 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between FXI and IEMG?
Using weekly returns as of 2026-08-27: 0.63 over 3 years, with 0.47 over the last year and 0.73 over 5 years.
Is IEMG a good diversifier for FXI?
Somewhat, no more. With 0.63 correlation, most large moves hit both names, and the diversification benefit stays modest.
How much do FXI and IEMG overlap?
The two funds share 46 holdings amounting to 11.2% of weight, per issuer portfolio files dated 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/fxi-vs-iemg.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/fxi-vs-iemg/)
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Related comparisons
Hubs: FXI correlations · IEMG correlations
