IEMG vs IWM: Correlation & Overlap
Measured on weekly returns over the past three years, iShares Core MSCI Emerging Markets ETF (IEMG) and iShares Russell 2000 ETF (IWM) carry a correlation of 0.61, a strong link. By holdings, the two funds overlap 0.4% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IEMG and IWM?
Over the past 3 years, IEMG and IWM moved with a correlation of 0.61, which is strong. Recent behaviour matches the longer record: 0.68 over 1 year against 0.61 over 3. Over 5 years the correlation is 0.61, and the annualized covariance of weekly returns is 210.8 %².
Within IEMG's tracked universe of 68 assets, IWM comes in at #32 by 3-year correlation. On 12-month performance IEMG holds a 7.6-point edge, +36.0% against +28.4%. On a rolling one-year basis the correlation drifted between 0.41 and 0.76, a moderate band.
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.
IEMG vs IWM: side by side
| IEMG (iShares Core MSCI Emerging Markets ETF) | IWM (iShares Russell 2000 ETF) | |
|---|---|---|
| 1-year return | +36.0% | +28.4% |
| 5-year return | +50.7% | +41.5% |
| Volatility (ann.) | 17.4% | 19.8% |
| Beta vs S&P 500 | 0.84 | 1.06 |
| Max drawdown (3Y) | -17.2% | -27.5% |
| Dividend yield | 2.31% | 0.91% |
| Expense ratio | 0.09% | 0.19% |
| Assets under management | $152.2B | $80.1B |
| Sector / category | ETF · International | ETF · US Small & Mid Cap |
IEMG is a Diversified Emerging Mkts fund from iShares: $152.2B under management, 1824 holdings, a 0.09% expense ratio, a 2.31% trailing dividend yield. IWM, iShares's Small Blend fund, carries $80.1B under management, 1757 holdings, a 0.19% expense ratio, a 0.91% trailing dividend yield.
Portfolio overlap between IEMG and IWM
The two portfolios are largely distinct. Weighing the shared positions, 0.4% of the two funds is identical, spread across 14 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in IEMG | Weight in IWM |
|---|---|---|
| VAL | 0.16% | 0.15% |
| ABG | 0.09% | 0.13% |
| OUT | 0.03% | 0.16% |
| HTO | 0.03% | 0.07% |
| RES | 0.02% | 0.02% |
| AMR | 0.01% | 0.07% |
| STC | 0.01% | 0.07% |
| SGP | 0.01% | 0.01% |
| MTH | 0.01% | 0.15% |
| SM | 0.01% | 0.27% |
| STNE | 0.01% | 0.07% |
| CPS | 0.01% | 0.01% |
| PAX | 0.01% | 0.02% |
| PAGS | 0.01% | 0.05% |
Largest positions held only by IEMG: 2330 (13.28%), 005930 (6.27%), 000660 (4.78%), 700 (2.49%), 9988 (1.77%). Only by IWM: MOGA (0.35%), UMBF (0.34%), CYTK (0.33%), GKOS (0.33%), EAT (0.33%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 14 common positions shown.
Year-by-year returns
| Year | IEMG | IWM |
|---|---|---|
| 2022 | -20.0% | -20.5% |
| 2023 | +11.5% | +16.8% |
| 2024 | +6.5% | +11.4% |
| 2025 | +32.6% | +12.7% |
| 2026 | +23.6% | +22.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IEMG and IWM good diversifiers for each other?
Only partially. A correlation of 0.61 means IEMG and IWM 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 IEMG and IWM?
Using weekly returns as of 2026-08-27: 0.61 over 3 years, with 0.68 over the last year and 0.61 over 5 years.
Is IWM a good diversifier for IEMG?
Only partially. A correlation of 0.61 means IEMG and IWM share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
How much do IEMG and IWM overlap?
The two funds share 14 holdings amounting to 0.4% of weight, per issuer portfolio files dated 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/iemg-vs-iwm.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/iemg-vs-iwm/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: IEMG correlations · IWM correlations
