IEMG vs QUAL: Correlation & Overlap
Measured on weekly returns over the past three years, iShares Core MSCI Emerging Markets ETF (IEMG) and iShares MSCI USA Quality Factor ETF (QUAL) carry a correlation of 0.65, a strong link. The two funds also share 0.1% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IEMG and QUAL?
Over the past 3 years, IEMG and QUAL moved with a correlation of 0.65, which is strong. The relationship has been stable: the 1-year correlation (0.68) sits close to the 3-year figure. Over 5 years the correlation is 0.63, and the annualized covariance of weekly returns is 159.0 %².
Among the 68 assets we track against IEMG, QUAL ranks #28 by 3-year correlation. The last year tells two different stories: IEMG led by 16.3 percentage points, +36.0% for IEMG against +19.7% for QUAL. The link looks structural: the rolling one-year correlation barely moved, holding between 0.56 and 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 QUAL: side by side
| IEMG (iShares Core MSCI Emerging Markets ETF) | QUAL (iShares MSCI USA Quality Factor ETF) | |
|---|---|---|
| 1-year return | +36.0% | +19.7% |
| 5-year return | +50.7% | +68.0% |
| Volatility (ann.) | 17.4% | 14.0% |
| Beta vs S&P 500 | 0.84 | 0.93 |
| Max drawdown (3Y) | -17.2% | -18.0% |
| Dividend yield | 2.31% | 0.86% |
| Expense ratio | 0.09% | 0.15% |
| Assets under management | $152.2B | $46.5B |
| Sector / category | ETF · International | ETF · US Style |
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. QUAL, iShares's Large Blend fund, carries $46.5B under management, 123 holdings, a 0.15% expense ratio, a 0.86% trailing dividend yield.
Portfolio overlap between IEMG and QUAL
The two portfolios are largely distinct, with 3 holdings in common adding up to 0.1% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
Largest positions held only by IEMG: 2330 (13.28%), 005930 (6.27%), 000660 (4.78%), 700 (2.49%), 9988 (1.77%). Only by QUAL: MSFT (7.51%), AAPL (6.62%), NVDA (6.00%), META (3.75%), LLY (3.72%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 3 common positions shown.
Year-by-year returns
| Year | IEMG | QUAL |
|---|---|---|
| 2022 | -20.0% | -20.5% |
| 2023 | +11.5% | +30.9% |
| 2024 | +6.5% | +22.3% |
| 2025 | +32.6% | +12.7% |
| 2026 | +23.6% | +13.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IEMG and QUAL good diversifiers for each other?
To a limited degree. At 0.65 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between IEMG and QUAL?
Using weekly returns as of 2026-08-27: 0.65 over 3 years, with 0.68 over the last year and 0.63 over 5 years.
Is QUAL a good diversifier for IEMG?
To a limited degree. At 0.65 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
How much do IEMG and QUAL overlap?
0.1% by weight, across 3 common holdings, based on issuer-disclosed portfolios as of 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/iemg-vs-qual.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/iemg-vs-qual/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: IEMG correlations · QUAL correlations
