IEMG vs VT: Correlation & Overlap
How closely do iShares Core MSCI Emerging Markets ETF (IEMG) and Vanguard Total World Stock ETF (VT) trade together? Their weekly returns over three years give a correlation of 0.82, which is very strong. By holdings, the two funds overlap 10.6% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IEMG and VT?
Over the past 3 years, IEMG and VT moved with a correlation of 0.82, which is very strong, meaning they move nearly in lockstep. Little has changed lately, as the 1-year reading of 0.87 lands near the 3-year figure. Over 5 years the correlation is 0.79, and the annualized covariance of weekly returns is 198.1 %².
By 3-year correlation, VT places #6 of the 68 assets tracked against IEMG. Over the last 12 months IEMG came out ahead by 13.3 percentage points (+36.0% against +22.7%). The rolling one-year correlation stayed in a tight band between 0.73 and 0.90 over the past three years, which points to a structural rather than episodic relationship.
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 VT: side by side
| IEMG (iShares Core MSCI Emerging Markets ETF) | VT (Vanguard Total World Stock ETF) | |
|---|---|---|
| 1-year return | +36.0% | +22.7% |
| 5-year return | +50.7% | +67.7% |
| Volatility (ann.) | 17.4% | 13.9% |
| Beta vs S&P 500 | 0.84 | 0.92 |
| Max drawdown (3Y) | -17.2% | -16.5% |
| Dividend yield | 2.31% | 1.59% |
| Expense ratio | 0.09% | 0.06% |
| Assets under management | $152.2B | $97.9B |
| Sector / category | ETF · International | ETF · Global |
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. VT is a Global Large-Stock Blend fund from Vanguard: $97.9B under management, 5308 holdings, a 0.06% expense ratio, a 1.59% trailing dividend yield.
Portfolio overlap between IEMG and VT
The two portfolios are largely distinct. Weighing the shared positions, 10.6% of the two funds is identical, spread across 1332 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in IEMG | Weight in VT |
|---|---|---|
| 2330 | 13.28% | 1.61% |
| 005930 | 6.27% | 0.72% |
| 000660 | 4.78% | 0.56% |
| 700 | 2.49% | 0.34% |
| 9988 | 1.77% | 0.25% |
| 2454 | 1.27% | 0.14% |
| 939 | 0.70% | 0.09% |
| 005935 | 0.81% | 0.09% |
| 2308 | 0.76% | 0.08% |
| 2317 | 0.67% | 0.08% |
| 1398 | 0.44% | 0.07% |
| PDD | 0.36% | 0.06% |
| 1211 | 0.47% | 0.06% |
| 3690 | 0.36% | 0.06% |
| 1810 | 0.45% | 0.06% |
Largest positions held only by IEMG: HDFCBANK (0.61%), RELIANCE (0.59%), ICICIBANK (0.55%), BHARTIARTL (0.39%), GMEXICOB (0.29%). Only by VT: NVDA (4.20%), AAPL (4.00%), MSFT (3.09%), AMZN (2.36%), GOOGL (1.89%).
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 | VT |
|---|---|---|
| 2022 | -20.0% | -18.0% |
| 2023 | +11.5% | +22.0% |
| 2024 | +6.5% | +16.5% |
| 2025 | +32.6% | +22.4% |
| 2026 | +23.6% | +15.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IEMG and VT good diversifiers for each other?
No. With a correlation of 0.82, IEMG and VT move nearly in lockstep, so holding both adds very little diversification.
FAQ
What is the correlation between IEMG and VT?
Using weekly returns as of 2026-08-27: 0.82 over 3 years, with 0.87 over the last year and 0.79 over 5 years.
Is VT a good diversifier for IEMG?
No. With a correlation of 0.82, IEMG and VT move nearly in lockstep, so holding both adds very little diversification.
How much do IEMG and VT overlap?
The two funds share 1332 holdings amounting to 10.6% of weight, per issuer portfolio files dated 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/iemg-vs-vt.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/iemg-vs-vt/)
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Related comparisons
Hubs: IEMG correlations · VT correlations
