IEMG vs VUG: Correlation & Overlap
How closely do iShares Core MSCI Emerging Markets ETF (IEMG) and Vanguard Growth ETF (VUG) trade together? Their weekly returns over three years give a correlation of 0.64, which is strong. The two funds also share 0.0% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IEMG and VUG?
Across a 3-year window, the weekly returns of IEMG and VUG correlate at 0.64, strong. Little has changed lately, as the 1-year reading of 0.63 lands near the 3-year figure. Stretching to 5 years gives 0.62, with an annualized covariance of 216.1 %².
Among the 68 assets we track against IEMG, VUG ranks #29 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months IEMG outperformed by 19.8 percentage points (+36.0% for IEMG against +16.2% for VUG). Stability stands out here, with the rolling one-year correlation confined to 0.51 through 0.75.
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 VUG: side by side
| IEMG (iShares Core MSCI Emerging Markets ETF) | VUG (Vanguard Growth ETF) | |
|---|---|---|
| 1-year return | +36.0% | +16.2% |
| 5-year return | +50.7% | +78.4% |
| Volatility (ann.) | 17.4% | 19.4% |
| Beta vs S&P 500 | 0.84 | 1.28 |
| Max drawdown (3Y) | -17.2% | -22.8% |
| Dividend yield | 2.31% | 0.40% |
| Expense ratio | 0.09% | 0.03% |
| Assets under management | $152.2B | $372.0B |
| Sector / category | ETF · International | ETF · US Style |
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. VUG, Vanguard's Large Growth fund, carries $372.0B under management, 146 holdings, a 0.03% expense ratio, a 0.40% trailing dividend yield.
Portfolio overlap between IEMG and VUG
The two portfolios are largely distinct. Weighing the shared positions, 0.0% of the two funds is identical, spread across 2 common holdings. That shared book is a large part of why the returns line up.
Largest positions held only by IEMG: 2330 (13.28%), 005930 (6.27%), 000660 (4.78%), 700 (2.49%), 9988 (1.77%). Only by VUG: NVDA (12.84%), AAPL (12.63%), MSFT (9.61%), GOOGL (5.81%), AMZN (5.16%).
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 | VUG |
|---|---|---|
| 2022 | -20.0% | -33.2% |
| 2023 | +11.5% | +46.8% |
| 2024 | +6.5% | +32.7% |
| 2025 | +32.6% | +19.4% |
| 2026 | +23.6% | +9.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IEMG and VUG good diversifiers for each other?
Only partially. A correlation of 0.64 means IEMG and VUG 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 VUG?
As of 2026-08-27, the correlation of weekly returns between IEMG and VUG is 0.64 over 3 years, 0.63 over 1 year and 0.62 over 5 years.
Is VUG a good diversifier for IEMG?
Only partially. A correlation of 0.64 means IEMG and VUG share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
How much do IEMG and VUG overlap?
The two funds share 2 holdings amounting to 0.0% of weight, per issuer portfolio files dated 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/iemg-vs-vug.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/iemg-vs-vug/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: IEMG correlations · VUG correlations
