IEMG vs XLC: Correlation & Overlap
Measured on weekly returns over the past three years, iShares Core MSCI Emerging Markets ETF (IEMG) and Communication Services Select Sector SPDR Fund (XLC) carry a correlation of 0.52, a moderate link. The two funds also share 0% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IEMG and XLC?
Over the past 3 years, IEMG and XLC moved with a correlation of 0.52, which is moderate. The relationship has been stable: the 1-year correlation (0.43) sits close to the 3-year figure. Over 5 years the correlation is 0.57, and the annualized covariance of weekly returns is 145.0 %².
Within IEMG's tracked universe of 68 assets, XLC comes in at #47 by 3-year correlation. The last year tells two different stories: IEMG led by 34.5 percentage points, +36.0% for IEMG against +1.5% for XLC. The rolling one-year correlation moved between 0.39 and 0.73 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 XLC: side by side
| IEMG (iShares Core MSCI Emerging Markets ETF) | XLC (Communication Services Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +36.0% | +1.5% |
| 5-year return | +50.7% | +37.5% |
| Volatility (ann.) | 17.4% | 16.0% |
| Beta vs S&P 500 | 0.84 | 0.90 |
| Max drawdown (3Y) | -17.2% | -18.0% |
| Dividend yield | 2.31% | 1.32% |
| Expense ratio | 0.09% | 0.08% |
| Assets under management | $152.2B | $21.7B |
| 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. On the fund side, XLC sits in the Communications category at State Street Investment Management, with $21.7B under management, 24 holdings, a 0.08% expense ratio, a 1.32% trailing dividend yield.
Portfolio overlap between IEMG and XLC
The two portfolios are largely distinct. Weighing the shared positions, 0% of the two funds is identical, spread across 0 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 XLC: META (16.73%), GOOGL (10.29%), GOOG (8.22%), T (5.20%), VZ (4.99%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26.
Year-by-year returns
| Year | IEMG | XLC |
|---|---|---|
| 2022 | -20.0% | -37.6% |
| 2023 | +11.5% | +52.8% |
| 2024 | +6.5% | +34.7% |
| 2025 | +32.6% | +23.1% |
| 2026 | +23.6% | -4.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IEMG and XLC good diversifiers for each other?
To a limited degree. At 0.52 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between IEMG and XLC?
Using weekly returns as of 2026-08-27: 0.52 over 3 years, with 0.43 over the last year and 0.57 over 5 years.
Is XLC a good diversifier for IEMG?
To a limited degree. At 0.52 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
How much do IEMG and XLC overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 0% by weight over 0 common positions.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/iemg-vs-xlc.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/iemg-vs-xlc/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: IEMG correlations · XLC correlations
