IEMG vs VNQ: Correlation & Overlap
Measured on weekly returns over the past three years, iShares Core MSCI Emerging Markets ETF (IEMG) and Vanguard Real Estate ETF (VNQ) carry a correlation of 0.39, a moderate link. 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 VNQ?
Across a 3-year window, the weekly returns of IEMG and VNQ correlate at 0.39, moderate. The past 12 months show a weaker link (0.26) than the 3-year average (0.39). Stretching to 5 years gives 0.45, with an annualized covariance of 112.1 %².
By 3-year correlation, VNQ places #52 of the 68 assets tracked against IEMG. Their recent paths diverged sharply: over the last 12 months IEMG outperformed by 25.7 percentage points (+36.0% for IEMG against +10.3% for VNQ). The rolling one-year correlation moved between 0.27 and 0.70 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 VNQ: side by side
| IEMG (iShares Core MSCI Emerging Markets ETF) | VNQ (Vanguard Real Estate ETF) | |
|---|---|---|
| 1-year return | +36.0% | +10.3% |
| 5-year return | +50.7% | +9.5% |
| Volatility (ann.) | 17.4% | 16.6% |
| Beta vs S&P 500 | 0.84 | 0.59 |
| Max drawdown (3Y) | -17.2% | -17.5% |
| Dividend yield | 2.31% | 3.51% |
| Expense ratio | 0.09% | 0.13% |
| Assets under management | $152.2B | $73.1B |
| Sector / category | ETF · International | ETF · Real Estate |
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. VNQ is a Real Estate fund from Vanguard: $73.1B under management, 140 holdings, a 0.13% expense ratio, a 3.51% trailing dividend yield.
Portfolio overlap between IEMG and VNQ
The two portfolios are largely distinct: 0.1% of the funds' weight sits in the same underlying holdings (2 common positions). Correlation tells you they move together; overlap tells you why.
| Common holding | Weight in IEMG | Weight in VNQ |
|---|---|---|
| OUT | 0.03% | 0.26% |
| MRP | 0.02% | 0.23% |
Largest positions held only by IEMG: 2330 (13.28%), 005930 (6.27%), 000660 (4.78%), 700 (2.49%), 9988 (1.77%). Only by VNQ: VRTPX (14.54%), WELL (8.54%), PLD (7.04%), EQIX (5.25%), AMT (4.22%).
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 | VNQ |
|---|---|---|
| 2022 | -20.0% | -26.3% |
| 2023 | +11.5% | +11.9% |
| 2024 | +6.5% | +4.8% |
| 2025 | +32.6% | +3.2% |
| 2026 | +23.6% | +12.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IEMG and VNQ good diversifiers for each other?
Reasonably. At 0.39, IEMG and VNQ keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between IEMG and VNQ?
The IEMG/VNQ correlation stands at 0.39 on a 3-year window (1 year: 0.26, 5 years: 0.45), computed from weekly returns as of 2026-08-27.
Is VNQ a good diversifier for IEMG?
Reasonably. At 0.39, IEMG and VNQ keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
How much do IEMG and VNQ 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-vnq.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/iemg-vs-vnq/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: IEMG correlations · VNQ correlations
