IEMG vs SCHD: Correlation & Overlap
How closely do iShares Core MSCI Emerging Markets ETF (IEMG) and Schwab US Dividend Equity ETF (SCHD) trade together? Their weekly returns over three years give a correlation of 0.40, which is moderate. 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 SCHD?
Across a 3-year window, the weekly returns of IEMG and SCHD correlate at 0.40, moderate. The link has loosened recently: the 1-year correlation (0.17) runs below the 3-year figure (0.40). Stretching to 5 years gives 0.47, with an annualized covariance of 90.7 %².
Among the 68 assets we track against IEMG, SCHD ranks #51 by 3-year correlation. The trailing year gives IEMG the advantage: +36.0% versus +29.6%, a 6.4-point spread. Do not treat this figure as fixed: across three years the rolling one-year correlation ranged all the way from 0.18 to 0.72.
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 SCHD: side by side
| IEMG (iShares Core MSCI Emerging Markets ETF) | SCHD (Schwab US Dividend Equity ETF) | |
|---|---|---|
| 1-year return | +36.0% | +29.6% |
| 5-year return | +50.7% | +60.9% |
| Volatility (ann.) | 17.4% | 12.9% |
| Beta vs S&P 500 | 0.84 | 0.52 |
| Max drawdown (3Y) | -17.2% | -16.1% |
| Dividend yield | 2.31% | 3.13% |
| Expense ratio | 0.09% | 0.06% |
| Assets under management | $152.2B | $104.2B |
| Sector / category | ETF · International | ETF · Dividend |
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. SCHD, Schwab ETFs's Large Value fund, carries $104.2B under management, 101 holdings, a 0.06% expense ratio, a 3.13% trailing dividend yield.
Portfolio overlap between IEMG and SCHD
The two portfolios are largely distinct, with 2 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 SCHD: MRK (4.92%), ABT (4.83%), AMGN (4.80%), KO (4.22%), VZ (3.97%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 2 common positions shown.
Year-by-year returns
| Year | IEMG | SCHD |
|---|---|---|
| 2022 | -20.0% | -3.3% |
| 2023 | +11.5% | +4.5% |
| 2024 | +6.5% | +11.7% |
| 2025 | +32.6% | +4.3% |
| 2026 | +23.6% | +29.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IEMG and SCHD good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.40 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between IEMG and SCHD?
The IEMG/SCHD correlation stands at 0.40 on a 3-year window (1 year: 0.17, 5 years: 0.47), computed from weekly returns as of 2026-08-27.
Is SCHD a good diversifier for IEMG?
Yes, to a useful degree: a correlation of 0.40 leaves real independence between the two, which historically damped combined volatility.
How much do IEMG and SCHD overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 0.1% by weight over 2 common positions.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/iemg-vs-schd.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/iemg-vs-schd/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: IEMG correlations · SCHD correlations
