IEMG vs QQQ: Correlation & Overlap
How closely do iShares Core MSCI Emerging Markets ETF (IEMG) and Invesco QQQ Trust (QQQ) trade together? Their weekly returns over three years give a correlation of 0.71, which is strong. The two funds also share 0.3% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IEMG and QQQ?
On 3 years of weekly data the IEMG/QQQ correlation comes out at 0.71, strong. The relationship has been stable: the 1-year correlation (0.76) sits close to the 3-year figure. The 5-year figure is 0.66, and annualized covariance runs at 243.3 %².
Among the 68 assets we track against IEMG, QQQ ranks #17 by 3-year correlation. On 12-month performance IEMG holds a 9.7-point edge, +36.0% against +26.3%. Across three years, the rolling one-year figure varied moderately, from 0.51 to 0.79.
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 QQQ: side by side
| IEMG (iShares Core MSCI Emerging Markets ETF) | QQQ (Invesco QQQ Trust) | |
|---|---|---|
| 1-year return | +36.0% | +26.3% |
| 5-year return | +50.7% | +95.4% |
| Volatility (ann.) | 17.4% | 19.6% |
| Beta vs S&P 500 | 0.84 | 1.28 |
| Max drawdown (3Y) | -17.2% | -22.8% |
| Dividend yield | 2.31% | 0.44% |
| Expense ratio | 0.09% | 0.18% |
| Assets under management | $152.2B | $452.8B |
| Sector / category | ETF · International | ETF · US Growth & Tech |
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. QQQ is a Large Growth fund from Invesco: $452.8B under management, 104 holdings, a 0.18% expense ratio, a 0.44% trailing dividend yield.
Portfolio overlap between IEMG and QQQ
The two portfolios are largely distinct. Weighing the shared positions, 0.3% of the two funds is identical, spread across 1 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in IEMG | Weight in QQQ |
|---|---|---|
| PDD | 0.36% | 0.26% |
Largest positions held only by IEMG: 2330 (13.28%), 005930 (6.27%), 000660 (4.78%), 700 (2.49%), 9988 (1.77%). Only by QQQ: NVDA (8.15%), AAPL (7.39%), MSFT (5.93%), MU (4.69%), AMZN (4.50%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 1 common positions shown.
Year-by-year returns
| Year | IEMG | QQQ |
|---|---|---|
| 2022 | -20.0% | -32.6% |
| 2023 | +11.5% | +54.9% |
| 2024 | +6.5% | +25.6% |
| 2025 | +32.6% | +20.8% |
| 2026 | +23.6% | +17.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IEMG and QQQ good diversifiers for each other?
Somewhat, no more. With 0.71 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between IEMG and QQQ?
As of 2026-08-27, the correlation of weekly returns between IEMG and QQQ is 0.71 over 3 years, 0.76 over 1 year and 0.66 over 5 years.
Is QQQ a good diversifier for IEMG?
Somewhat, no more. With 0.71 correlation, most large moves hit both names, and the diversification benefit stays modest.
How much do IEMG and QQQ overlap?
The two funds share 1 holdings amounting to 0.3% of weight, per issuer portfolio files dated 2026-08-26.
Use this data
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Related comparisons
Hubs: IEMG correlations · QQQ correlations
