IEMG vs VEA: Correlation & Overlap
iShares Core MSCI Emerging Markets ETF (IEMG) and Vanguard FTSE Developed Markets ETF (VEA) show a very strong relationship: their 3-year correlation of weekly returns is 0.85. By holdings, the two funds overlap 9.1% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IEMG and VEA?
Over the past 3 years, IEMG and VEA moved with a correlation of 0.85, which is very strong, meaning they move nearly in lockstep. The relationship has been stable: the 1-year correlation (0.90) sits close to the 3-year figure. Over 5 years the correlation is 0.83, and the annualized covariance of weekly returns is 223.3 %².
Within IEMG's tracked universe of 68 assets, VEA comes in at #5 by 3-year correlation. Over the last 12 months IEMG came out ahead by 7.5 percentage points (+36.0% against +28.5%). Stability stands out here, with the rolling one-year correlation confined to 0.75 through 0.91.
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 VEA: side by side
| IEMG (iShares Core MSCI Emerging Markets ETF) | VEA (Vanguard FTSE Developed Markets ETF) | |
|---|---|---|
| 1-year return | +36.0% | +28.5% |
| 5-year return | +50.7% | +63.5% |
| Volatility (ann.) | 17.4% | 15.1% |
| Beta vs S&P 500 | 0.84 | 0.79 |
| Max drawdown (3Y) | -17.2% | -13.5% |
| Dividend yield | 2.31% | 2.56% |
| Expense ratio | 0.09% | 0.03% |
| Assets under management | $152.2B | $314.9B |
| Sector / category | ETF · International | ETF · International |
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. VEA is a Foreign Large Blend fund from Vanguard: $314.9B under management, 3769 holdings, a 0.03% expense ratio, a 2.56% trailing dividend yield.
Portfolio overlap between IEMG and VEA
The two portfolios are largely distinct, with 323 holdings in common adding up to 9.1% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
| Common holding | Weight in IEMG | Weight in VEA |
|---|---|---|
| 005930 | 6.27% | 2.53% |
| 000660 | 4.78% | 1.98% |
| 005935 | 0.81% | 0.32% |
| 402340 | 0.50% | 0.19% |
| 009150 | 0.38% | 0.13% |
| 105560 | 0.30% | 0.13% |
| 005380 | 0.28% | 0.11% |
| 055550 | 0.23% | 0.09% |
| PKO | 0.19% | 0.08% |
| 992 | 0.21% | 0.07% |
| PKN | 0.17% | 0.07% |
| 086790 | 0.19% | 0.07% |
| 035420 | 0.16% | 0.07% |
| 000270 | 0.16% | 0.07% |
| 012450 | 0.19% | 0.07% |
Largest positions held only by IEMG: 2330 (13.28%), 700 (2.49%), 9988 (1.77%), 2454 (1.27%), 2308 (0.76%). Only by VEA: ASML (2.00%), HSBA (1.15%), ROP (0.97%), SAN (0.94%), RY (0.92%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 15 common positions shown.
Year-by-year returns
| Year | IEMG | VEA |
|---|---|---|
| 2022 | -20.0% | -15.3% |
| 2023 | +11.5% | +17.9% |
| 2024 | +6.5% | +3.1% |
| 2025 | +32.6% | +35.2% |
| 2026 | +23.6% | +18.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IEMG and VEA good diversifiers for each other?
No: a correlation of 0.85 means IEMG and VEA tend to fall together, which is precisely when diversification is supposed to help.
FAQ
What is the correlation between IEMG and VEA?
Using weekly returns as of 2026-08-27: 0.85 over 3 years, with 0.90 over the last year and 0.83 over 5 years.
Is VEA a good diversifier for IEMG?
No: a correlation of 0.85 means IEMG and VEA tend to fall together, which is precisely when diversification is supposed to help.
How much do IEMG and VEA overlap?
9.1% by weight, across 323 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-vea.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/iemg-vs-vea/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: IEMG correlations · VEA correlations
