ICLN vs VWO: Correlation & Overlap
iShares Global Clean Energy ETF (ICLN) and Vanguard FTSE Emerging Markets ETF (VWO) show a moderate relationship: their 3-year correlation of weekly returns is 0.58. By holdings, the two funds overlap 0.5% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ICLN and VWO?
Over the past 3 years, ICLN and VWO moved with a correlation of 0.58, which is moderate. Little has changed lately, as the 1-year reading of 0.59 lands near the 3-year figure. Over 5 years the correlation is 0.53, and the annualized covariance of weekly returns is 211.1 %².
By 3-year correlation, VWO places #11 of the 78 assets tracked against ICLN. Twelve-month performance is nearly a tie, at +25.6% for ICLN and +21.6% for VWO. Stability stands out here, with the rolling one-year correlation confined to 0.43 through 0.67. Note the risk asymmetry: ICLN runs 1.6 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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.
ICLN vs VWO: side by side
| ICLN (iShares Global Clean Energy ETF) | VWO (Vanguard FTSE Emerging Markets ETF) | |
|---|---|---|
| 1-year return | +25.6% | +21.6% |
| 5-year return | -18.4% | +38.2% |
| Volatility (ann.) | 24.0% | 15.2% |
| Beta vs S&P 500 | 0.78 | 0.75 |
| Max drawdown (3Y) | -34.6% | -17.4% |
| Dividend yield | 1.05% | 2.36% |
| Expense ratio | 0.39% | 0.06% |
| Assets under management | $2.3B | $162.0B |
| Sector / category | ETF · Thematic | ETF · International |
ICLN is a Miscellaneous Sector fund from iShares: $2.3B under management, 102 holdings, a 0.39% expense ratio, a 1.05% 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 ICLN and VWO
The two portfolios are largely distinct. Weighing the shared positions, 0.5% of the two funds is identical, spread across 56 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in ICLN | Weight in VWO |
|---|---|---|
| EQTL3 | 3.09% | 0.08% |
| 600900 | 7.64% | 0.07% |
| SUZLON | 1.99% | 0.06% |
| ENGI11 | 1.35% | 0.04% |
| NHPC | 0.72% | 0.03% |
| EGIE3 | 0.59% | 0.03% |
| 916 | 1.25% | 0.03% |
| ENELAM | 0.33% | 0.02% |
| CPFE3 | 0.91% | 0.02% |
| 2208 | 0.92% | 0.01% |
| 600905 | 1.18% | 0.01% |
| 601012 | 1.03% | 0.01% |
| 600674 | 0.85% | 0.01% |
| AURE3 | 0.36% | 0.01% |
| 3576 | 0.71% | 0.01% |
Largest positions held only by ICLN: FSLR (7.87%), BE (7.36%), NXT (6.81%), ENPH (4.70%), VWS (4.36%). Only by VWO: 2330 (18.65%), 700 (3.97%), 9988 (2.90%), 2454 (1.62%), 939 (1.07%).
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 | ICLN | VWO |
|---|---|---|
| 2022 | -5.4% | -18.0% |
| 2023 | -20.4% | +9.3% |
| 2024 | -25.7% | +10.6% |
| 2025 | +47.0% | +25.6% |
| 2026 | +8.8% | +13.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ICLN and VWO good diversifiers for each other?
Somewhat, no more. With 0.58 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between ICLN and VWO?
Using weekly returns as of 2026-08-27: 0.58 over 3 years, with 0.59 over the last year and 0.53 over 5 years.
Is VWO a good diversifier for ICLN?
Somewhat, no more. With 0.58 correlation, most large moves hit both names, and the diversification benefit stays modest.
How much do ICLN and VWO overlap?
0.5% by weight, across 56 common holdings, based on issuer-disclosed portfolios as of 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/icln-vs-vwo.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/icln-vs-vwo/)
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Related comparisons
Hubs: ICLN correlations · VWO correlations
