IEMG vs XLB: Correlation & Overlap
Measured on weekly returns over the past three years, iShares Core MSCI Emerging Markets ETF (IEMG) and Materials Select Sector SPDR Fund (XLB) carry a correlation of 0.59, a moderate link. 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 XLB?
On 3 years of weekly data the IEMG/XLB correlation comes out at 0.59, moderate. Little has changed lately, as the 1-year reading of 0.51 lands near the 3-year figure. The 5-year figure is 0.64, and annualized covariance runs at 173.1 %².
Within IEMG's tracked universe of 68 assets, XLB comes in at #39 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months IEMG outperformed by 18.4 percentage points (+36.0% for IEMG against +17.6% for XLB). The rolling one-year correlation moved between 0.47 and 0.80 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 XLB: side by side
| IEMG (iShares Core MSCI Emerging Markets ETF) | XLB (Materials Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +36.0% | +17.6% |
| 5-year return | +50.7% | +36.9% |
| Volatility (ann.) | 17.4% | 16.7% |
| Beta vs S&P 500 | 0.84 | 0.72 |
| Max drawdown (3Y) | -17.2% | -23.2% |
| Dividend yield | 2.31% | 1.68% |
| Expense ratio | 0.09% | 0.08% |
| Assets under management | $152.2B | $8.3B |
| Sector / category | ETF · International | Sector ETF |
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. XLB is a Natural Resources fund from State Street Investment Management: $8.3B under management, 26 holdings, a 0.08% expense ratio, a 1.68% trailing dividend yield.
Portfolio overlap between IEMG and XLB
The two portfolios are largely distinct: 0.0% of the funds' weight sits in the same underlying holdings (1 common positions). Correlation tells you they move together; overlap tells you why.
| Common holding | Weight in IEMG | Weight in XLB |
|---|---|---|
| ECL | 0.01% | 4.80% |
Largest positions held only by IEMG: 2330 (13.28%), 005930 (6.27%), 000660 (4.78%), 700 (2.49%), 9988 (1.77%). Only by XLB: LIN (12.94%), NEM (8.02%), FCX (6.48%), SHW (4.87%), CTVA (4.72%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 1 common positions shown.
Year-by-year returns
| Year | IEMG | XLB |
|---|---|---|
| 2022 | -20.0% | -12.3% |
| 2023 | +11.5% | +12.5% |
| 2024 | +6.5% | +0.1% |
| 2025 | +32.6% | +9.9% |
| 2026 | +23.6% | +18.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IEMG and XLB good diversifiers for each other?
Only partially. A correlation of 0.59 means IEMG and XLB 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 XLB?
The IEMG/XLB correlation stands at 0.59 on a 3-year window (1 year: 0.51, 5 years: 0.64), computed from weekly returns as of 2026-08-27.
Is XLB a good diversifier for IEMG?
Only partially. A correlation of 0.59 means IEMG and XLB share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
How much do IEMG and XLB overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 0.0% by weight over 1 common positions.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/iemg-vs-xlb.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/iemg-vs-xlb/)
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Related comparisons
Hubs: IEMG correlations · XLB correlations
