FXI vs VWO: Correlation & Overlap
Measured on weekly returns over the past three years, iShares China Large-Cap ETF (FXI) and Vanguard FTSE Emerging Markets ETF (VWO) carry a correlation of 0.75, a strong link. Looking through to holdings, 17.6% of the two portfolios is the same by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are FXI and VWO?
On 3 years of weekly data the FXI/VWO correlation comes out at 0.75, strong. The past 12 months show a weaker link (0.63) than the 3-year average (0.75). The 5-year figure is 0.81, and annualized covariance runs at 286.3 %².
Few assets follow FXI as closely as VWO, which ranks #3 of 74 tracked partners. Their recent paths diverged sharply: over the last 12 months VWO outperformed by 27.7 percentage points (-6.1% for FXI against +21.6% for VWO). Across three years, the rolling one-year figure varied moderately, from 0.64 to 0.92. Risk is not evenly split, since FXI carries 1.7 times the volatility of the other side.
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 VWO: side by side
| FXI (iShares China Large-Cap ETF) | VWO (Vanguard FTSE Emerging Markets ETF) | |
|---|---|---|
| 1-year return | -6.1% | +21.6% |
| 5-year return | -1.4% | +38.2% |
| Volatility (ann.) | 25.3% | 15.2% |
| Beta vs S&P 500 | 0.68 | 0.75 |
| Max drawdown (3Y) | -23.2% | -17.4% |
| Dividend yield | 1.87% | 2.36% |
| Expense ratio | 0.73% | 0.06% |
| Assets under management | $4.3B | $162.0B |
| Sector / category | ETF · International | ETF · International |
On the fund side, FXI sits in the Greater China Region category at iShares, with $4.3B under management, 50 holdings, a 0.73% expense ratio, a 1.87% 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 FXI and VWO
The two portfolios partially overlap: 17.6% of the funds' weight sits in the same underlying holdings (50 common positions). Correlation tells you they move together; overlap tells you why.
| Common holding | Weight in FXI | Weight in VWO |
|---|---|---|
| 700 | 8.51% | 3.97% |
| 9988 | 9.72% | 2.90% |
| 939 | 9.09% | 1.07% |
| 1398 | 6.35% | 0.80% |
| 1211 | 3.56% | 0.68% |
| 3690 | 4.44% | 0.67% |
| 1810 | 5.16% | 0.66% |
| 9999 | 3.70% | 0.50% |
| 2318 | 3.89% | 0.50% |
| 3988 | 3.91% | 0.49% |
| 9618 | 2.90% | 0.42% |
| 9888 | 2.03% | 0.31% |
| 9961 | 2.26% | 0.29% |
| 2628 | 2.27% | 0.29% |
| 857 | 2.16% | 0.27% |
Largest positions held only by FXI: . Only by VWO: 2330 (18.65%), 2454 (1.62%), 2308 (0.99%), 2317 (0.97%), PDD (0.71%).
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 | VWO |
|---|---|---|
| 2022 | -20.7% | -18.0% |
| 2023 | -12.4% | +9.3% |
| 2024 | +29.0% | +10.6% |
| 2025 | +28.9% | +25.6% |
| 2026 | -7.3% | +13.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are FXI and VWO good diversifiers for each other?
Somewhat, no more. With 0.75 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between FXI and VWO?
The FXI/VWO correlation stands at 0.75 on a 3-year window (1 year: 0.63, 5 years: 0.81), computed from weekly returns as of 2026-08-27.
Is VWO a good diversifier for FXI?
Somewhat, no more. With 0.75 correlation, most large moves hit both names, and the diversification benefit stays modest.
How much do FXI and VWO overlap?
The two funds share 50 holdings amounting to 17.6% of weight, per issuer portfolio files dated 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/fxi-vs-vwo.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/fxi-vs-vwo/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: FXI correlations · VWO correlations
