IEMG vs VWO: Correlation & Overlap
How closely do iShares Core MSCI Emerging Markets ETF (IEMG) and Vanguard FTSE Emerging Markets ETF (VWO) trade together? Their weekly returns over three years give a correlation of 0.96, which is very strong. Looking through to holdings, 62.7% 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 VWO?
Across a 3-year window, the weekly returns of IEMG and VWO correlate at 0.96, very strong, meaning they move nearly in lockstep. Recent behaviour matches the longer record: 0.95 over 1 year against 0.96 over 3. Stretching to 5 years gives 0.98, with an annualized covariance of 255.0 %².
In IEMG's tracked universe of 68 assets, VWO sits right near the top at #2. On 12-month performance IEMG holds a 14.4-point edge, +36.0% against +21.6%. The rolling one-year correlation stayed in a tight band between 0.95 and 1.00 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 VWO: side by side
| IEMG (iShares Core MSCI Emerging Markets ETF) | VWO (Vanguard FTSE Emerging Markets ETF) | |
|---|---|---|
| 1-year return | +36.0% | +21.6% |
| 5-year return | +50.7% | +38.2% |
| Volatility (ann.) | 17.4% | 15.2% |
| Beta vs S&P 500 | 0.84 | 0.75 |
| Max drawdown (3Y) | -17.2% | -17.4% |
| Dividend yield | 2.31% | 2.36% |
| Expense ratio | 0.09% | 0.06% |
| Assets under management | $152.2B | $162.0B |
| Sector / category | ETF · International | ETF · International |
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. On the fund side, VWO sits in the Diversified Emerging Mkts category at Vanguard, with $162.0B under management, 4113 holdings, a 0.06% expense ratio, a 2.36% trailing dividend yield.
Portfolio overlap between IEMG and VWO
The two portfolios overlap heavily. Weighing the shared positions, 62.7% of the two funds is identical, spread across 1170 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in IEMG | Weight in VWO |
|---|---|---|
| 2330 | 13.28% | 18.65% |
| 700 | 2.49% | 3.97% |
| 9988 | 1.77% | 2.90% |
| 2454 | 1.27% | 1.62% |
| 2308 | 0.76% | 0.99% |
| 939 | 0.70% | 1.07% |
| 2317 | 0.67% | 0.97% |
| 1211 | 0.47% | 0.68% |
| 1810 | 0.45% | 0.66% |
| 3711 | 0.44% | 0.59% |
| 1398 | 0.44% | 0.80% |
| ANG | 0.42% | 0.40% |
| 1120 | 0.38% | 0.51% |
| VALE3 | 0.38% | 0.55% |
| 2383 | 0.38% | 0.43% |
Largest positions held only by IEMG: 005930 (6.27%), 000660 (4.78%), 005935 (0.81%), HDFCBANK (0.61%), RELIANCE (0.59%). Only by VWO: PTT-F (0.15%), TLV (0.09%), SQM-B (0.09%), GULF-F (0.09%), 1179 (0.09%).
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 | VWO |
|---|---|---|
| 2022 | -20.0% | -18.0% |
| 2023 | +11.5% | +9.3% |
| 2024 | +6.5% | +10.6% |
| 2025 | +32.6% | +25.6% |
| 2026 | +23.6% | +13.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IEMG and VWO good diversifiers for each other?
No. With a correlation of 0.96, IEMG and VWO move nearly in lockstep, so holding both adds very little diversification. The 62.7% holdings overlap makes the redundancy concrete: much of it is the same book twice.
FAQ
What is the correlation between IEMG and VWO?
The IEMG/VWO correlation stands at 0.96 on a 3-year window (1 year: 0.95, 5 years: 0.98), computed from weekly returns as of 2026-08-27.
Is VWO a good diversifier for IEMG?
No. With a correlation of 0.96, IEMG and VWO move nearly in lockstep, so holding both adds very little diversification. The 62.7% holdings overlap makes the redundancy concrete: much of it is the same book twice.
How much do IEMG and VWO overlap?
The two funds share 1170 holdings amounting to 62.7% of weight, per issuer portfolio files dated 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/iemg-vs-vwo.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/iemg-vs-vwo/)
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Related comparisons
Hubs: IEMG correlations · VWO correlations
