IEMG vs VIG: Correlation & Overlap
iShares Core MSCI Emerging Markets ETF (IEMG) and Vanguard Dividend Appreciation ETF (VIG) show a strong relationship: their 3-year correlation of weekly returns is 0.60. Looking through to holdings, 0.1% of the two portfolios is the same by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IEMG and VIG?
On 3 years of weekly data the IEMG/VIG correlation comes out at 0.60, strong. The relationship has been stable: the 1-year correlation (0.57) sits close to the 3-year figure. The 5-year figure is 0.58, and annualized covariance runs at 125.0 %².
Within IEMG's tracked universe of 68 assets, VIG comes in at #36 by 3-year correlation. Correlation aside, the last 12 months split them widely, with IEMG ahead by 18.9 points (+36.0% versus +17.1%). The rolling one-year correlation moved between 0.47 and 0.77 over the past three years, a moderate range.
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 VIG: side by side
| IEMG (iShares Core MSCI Emerging Markets ETF) | VIG (Vanguard Dividend Appreciation ETF) | |
|---|---|---|
| 1-year return | +36.0% | +17.1% |
| 5-year return | +50.7% | +64.0% |
| Volatility (ann.) | 17.4% | 11.9% |
| Beta vs S&P 500 | 0.84 | 0.74 |
| Max drawdown (3Y) | -17.2% | -15.0% |
| Dividend yield | 2.31% | 1.50% |
| Expense ratio | 0.09% | 0.04% |
| Assets under management | $152.2B | $130.9B |
| Sector / category | ETF · International | ETF · Dividend |
IEMG, iShares's Diversified Emerging Mkts fund, carries $152.2B under management, 1824 holdings, a 0.09% expense ratio, a 2.31% trailing dividend yield. VIG, Vanguard's Large Blend fund, carries $130.9B under management, 333 holdings, a 0.04% expense ratio, a 1.50% trailing dividend yield.
Portfolio overlap between IEMG and VIG
The two portfolios are largely distinct, with 5 holdings in common adding up to 0.1% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
| Common holding | Weight in IEMG | Weight in VIG |
|---|---|---|
| BDX | 0.02% | 0.20% |
| HTO | 0.03% | 0.01% |
| TEL | 0.01% | 0.26% |
| ECL | 0.01% | 0.31% |
| SRE | 0.01% | 0.25% |
Largest positions held only by IEMG: 2330 (13.28%), 005930 (6.27%), 000660 (4.78%), 700 (2.49%), 9988 (1.77%). Only by VIG: AVGO (4.65%), AAPL (4.47%), MSFT (4.35%), JPM (4.09%), LLY (3.94%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 5 common positions shown.
Year-by-year returns
| Year | IEMG | VIG |
|---|---|---|
| 2022 | -20.0% | -9.8% |
| 2023 | +11.5% | +14.5% |
| 2024 | +6.5% | +17.0% |
| 2025 | +32.6% | +14.2% |
| 2026 | +23.6% | +11.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IEMG and VIG good diversifiers for each other?
Only partially. A correlation of 0.60 means IEMG and VIG 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 VIG?
Using weekly returns as of 2026-08-27: 0.60 over 3 years, with 0.57 over the last year and 0.58 over 5 years.
Is VIG a good diversifier for IEMG?
Only partially. A correlation of 0.60 means IEMG and VIG share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
How much do IEMG and VIG overlap?
The two funds share 5 holdings amounting to 0.1% of weight, per issuer portfolio files dated 2026-08-26.
Use this data
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Related comparisons
Hubs: IEMG correlations · VIG correlations
