IEMG vs VTI: Correlation & Overlap
How closely do iShares Core MSCI Emerging Markets ETF (IEMG) and Vanguard Total Stock Market ETF (VTI) trade together? Their weekly returns over three years give a correlation of 0.70, which is strong. The two funds also share 0.2% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IEMG and VTI?
Across a 3-year window, the weekly returns of IEMG and VTI correlate at 0.70, strong. Little has changed lately, as the 1-year reading of 0.74 lands near the 3-year figure. Stretching to 5 years gives 0.66, with an annualized covariance of 177.9 %².
Within IEMG's tracked universe of 68 assets, VTI comes in at #21 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months IEMG outperformed by 15.3 percentage points (+36.0% for IEMG against +20.7% for VTI). Stability stands out here, with the rolling one-year correlation confined to 0.57 through 0.79.
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 VTI: side by side
| IEMG (iShares Core MSCI Emerging Markets ETF) | VTI (Vanguard Total Stock Market ETF) | |
|---|---|---|
| 1-year return | +36.0% | +20.7% |
| 5-year return | +50.7% | +74.8% |
| Volatility (ann.) | 17.4% | 14.6% |
| Beta vs S&P 500 | 0.84 | 1.01 |
| Max drawdown (3Y) | -17.2% | -19.3% |
| Dividend yield | 2.31% | 1.06% |
| Expense ratio | 0.09% | 0.03% |
| Assets under management | $152.2B | $2,290.0B |
| Sector / category | ETF · International | ETF · US Large Cap |
On the fund side, IEMG sits in the Diversified Emerging Mkts category at iShares, with $152.2B under management, 1824 holdings, a 0.09% expense ratio, a 2.31% trailing dividend yield. VTI, Vanguard's Large Blend fund, carries $2,290.0B under management, 3140 holdings, a 0.03% expense ratio, a 1.06% trailing dividend yield.
Portfolio overlap between IEMG and VTI
The two portfolios are largely distinct. Weighing the shared positions, 0.2% of the two funds is identical, spread across 28 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in IEMG | Weight in VTI |
|---|---|---|
| HAL | 0.06% | 0.03% |
| BDX | 0.02% | 0.06% |
| MOH | 0.03% | 0.01% |
| TRU | 0.01% | 0.02% |
| LULU | 0.01% | 0.02% |
| SRE | 0.01% | 0.08% |
| CCL | 0.01% | 0.05% |
| SM | 0.01% | 0.01% |
| ECL | 0.01% | 0.10% |
| TEL | 0.01% | 0.08% |
| NXST | 0.01% | 0.01% |
| OUT | 0.03% | 0.01% |
| MTN | 0.15% | 0.01% |
| SLM | 0.07% | 0.01% |
| MTH | 0.01% | 0.01% |
Largest positions held only by IEMG: 2330 (13.28%), 005930 (6.27%), 000660 (4.78%), 700 (2.49%), 9988 (1.77%). Only by VTI: NVDA (6.42%), AAPL (6.31%), MSFT (4.80%), AMZN (3.66%), GOOGL (2.91%).
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 | VTI |
|---|---|---|
| 2022 | -20.0% | -19.5% |
| 2023 | +11.5% | +26.0% |
| 2024 | +6.5% | +23.8% |
| 2025 | +32.6% | +17.1% |
| 2026 | +23.6% | +14.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IEMG and VTI good diversifiers for each other?
Only partially. A correlation of 0.70 means IEMG and VTI 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 VTI?
Using weekly returns as of 2026-08-27: 0.70 over 3 years, with 0.74 over the last year and 0.66 over 5 years.
Is VTI a good diversifier for IEMG?
Only partially. A correlation of 0.70 means IEMG and VTI share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
How much do IEMG and VTI overlap?
The two funds share 28 holdings amounting to 0.2% of weight, per issuer portfolio files dated 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/iemg-vs-vti.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/iemg-vs-vti/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: IEMG correlations · VTI correlations
