IEMG vs QQQM: Correlation & Overlap
iShares Core MSCI Emerging Markets ETF (IEMG) and Invesco Nasdaq 100 ETF (QQQM) show a strong relationship: their 3-year correlation of weekly returns is 0.71. 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 QQQM?
Over the past 3 years, IEMG and QQQM moved with a correlation of 0.71, which is strong. The relationship has been stable: the 1-year correlation (0.76) sits close to the 3-year figure. Over 5 years the correlation is 0.66, and the annualized covariance of weekly returns is 241.8 %².
Among the 68 assets we track against IEMG, QQQM ranks #18 by 3-year correlation. Over the last 12 months IEMG came out ahead by 9.6 percentage points (+36.0% against +26.4%). 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 QQQM: side by side
| IEMG (iShares Core MSCI Emerging Markets ETF) | QQQM (Invesco Nasdaq 100 ETF) | |
|---|---|---|
| 1-year return | +36.0% | +26.4% |
| 5-year return | +50.7% | +96.1% |
| Volatility (ann.) | 17.4% | 19.5% |
| Beta vs S&P 500 | 0.84 | 1.28 |
| Max drawdown (3Y) | -17.2% | -22.7% |
| Dividend yield | 2.31% | 0.46% |
| Expense ratio | 0.09% | 0.15% |
| Assets under management | $152.2B | $97.1B |
| Sector / category | ETF · International | ETF · US Growth & Tech |
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. QQQM is a Large Growth fund from Invesco: $97.1B under management, 105 holdings, a 0.15% expense ratio, a 0.46% trailing dividend yield.
Portfolio overlap between IEMG and QQQM
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 QQQM |
|---|---|---|
| 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 QQQM: 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 | QQQM |
|---|---|---|
| 2022 | -20.0% | -32.5% |
| 2023 | +11.5% | +55.0% |
| 2024 | +6.5% | +25.7% |
| 2025 | +32.6% | +20.9% |
| 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 QQQM good diversifiers for each other?
Only partially. A correlation of 0.71 means IEMG and QQQM 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 QQQM?
Using weekly returns as of 2026-08-27: 0.71 over 3 years, with 0.76 over the last year and 0.66 over 5 years.
Is QQQM a good diversifier for IEMG?
Only partially. A correlation of 0.71 means IEMG and QQQM share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
How much do IEMG and QQQM overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 0.3% by weight over 1 common positions.
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Related comparisons
Hubs: IEMG correlations · QQQM correlations
