IEMG vs KWEB: Correlation
How closely do iShares Core MSCI Emerging Markets ETF (IEMG) and KraneShares CSI China Internet ETF (KWEB) trade together? Their weekly returns over three years give a correlation of 0.61, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IEMG and KWEB?
Over the past 3 years, IEMG and KWEB moved with a correlation of 0.61, which is strong. The link has loosened recently: the 1-year correlation (0.46) runs below the 3-year figure (0.61). Over 5 years the correlation is 0.67, and the annualized covariance of weekly returns is 358.3 %².
Within IEMG's tracked universe of 68 assets, KWEB comes in at #33 by 3-year correlation. Correlation aside, the last 12 months split them widely, with IEMG ahead by 62.1 points (+36.0% versus -26.1%). Across three years, the rolling one-year figure varied moderately, from 0.48 to 0.85. One caveat on sizing: KWEB is 1.9 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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 KWEB: side by side
| IEMG (iShares Core MSCI Emerging Markets ETF) | KWEB (KraneShares CSI China Internet ETF) | |
|---|---|---|
| 1-year return | +36.0% | -26.1% |
| 5-year return | +50.7% | -36.2% |
| Volatility (ann.) | 17.4% | 33.9% |
| Beta vs S&P 500 | 0.84 | 0.90 |
| Max drawdown (3Y) | -17.2% | -41.6% |
| Dividend yield | 2.31% | – |
| Expense ratio | 0.09% | – |
| Assets under management | $152.2B | – |
| Sector / category | ETF · International | ETF · Thematic |
On the fund side, IEMG sits in the Diversified Emerging Mkts category at iShares, with $152.2B under management, 1824 holdings, a 0.09% expense ratio, a 2.31% trailing dividend yield.
Year-by-year returns
| Year | IEMG | KWEB |
|---|---|---|
| 2022 | -20.0% | -17.2% |
| 2023 | +11.5% | -9.1% |
| 2024 | +6.5% | +12.0% |
| 2025 | +32.6% | +23.5% |
| 2026 | +23.6% | -23.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IEMG and KWEB good diversifiers for each other?
Only partially. A correlation of 0.61 means IEMG and KWEB 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 KWEB?
The IEMG/KWEB correlation stands at 0.61 on a 3-year window (1 year: 0.46, 5 years: 0.67), computed from weekly returns as of 2026-08-27.
Is KWEB a good diversifier for IEMG?
Only partially. A correlation of 0.61 means IEMG and KWEB share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.61 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/iemg-vs-kweb.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/iemg-vs-kweb/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: IEMG correlations · KWEB correlations
