IEMG vs XLI: Correlation & Overlap
How closely do iShares Core MSCI Emerging Markets ETF (IEMG) and Industrial Select Sector SPDR Fund (XLI) trade together? Their weekly returns over three years give a correlation of 0.59, which is moderate. By holdings, the two funds overlap 0% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IEMG and XLI?
Over the past 3 years, IEMG and XLI moved with a correlation of 0.59, which is moderate. Recent behaviour matches the longer record: 0.57 over 1 year against 0.59 over 3. Over 5 years the correlation is 0.59, and the annualized covariance of weekly returns is 162.7 %².
Within IEMG's tracked universe of 68 assets, XLI comes in at #40 by 3-year correlation. The last year tells two different stories: IEMG led by 17.7 percentage points, +36.0% for IEMG against +18.3% for XLI. On a rolling one-year basis the correlation drifted between 0.41 and 0.77, a moderate band.
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 XLI: side by side
| IEMG (iShares Core MSCI Emerging Markets ETF) | XLI (Industrial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +36.0% | +18.3% |
| 5-year return | +50.7% | +84.0% |
| Volatility (ann.) | 17.4% | 15.7% |
| Beta vs S&P 500 | 0.84 | 0.89 |
| Max drawdown (3Y) | -17.2% | -18.5% |
| Dividend yield | 2.31% | 1.15% |
| Expense ratio | 0.09% | 0.08% |
| Assets under management | $152.2B | $32.9B |
| Sector / category | ETF · International | Sector ETF |
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. XLI is an Industrials fund from State Street Investment Management: $32.9B under management, 83 holdings, a 0.08% expense ratio, a 1.15% trailing dividend yield.
Portfolio overlap between IEMG and XLI
The two portfolios are largely distinct, with 0 holdings in common adding up to 0% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
Largest positions held only by IEMG: 2330 (13.28%), 005930 (6.27%), 000660 (4.78%), 700 (2.49%), 9988 (1.77%). Only by XLI: CAT (6.68%), GE (6.52%), RTX (5.04%), GEV (4.52%), UNP (3.25%).
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 | XLI |
|---|---|---|
| 2022 | -20.0% | -5.6% |
| 2023 | +11.5% | +18.1% |
| 2024 | +6.5% | +17.3% |
| 2025 | +32.6% | +19.3% |
| 2026 | +23.6% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IEMG and XLI good diversifiers for each other?
Somewhat, no more. With 0.59 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between IEMG and XLI?
Using weekly returns as of 2026-08-27: 0.59 over 3 years, with 0.57 over the last year and 0.59 over 5 years.
Is XLI a good diversifier for IEMG?
Somewhat, no more. With 0.59 correlation, most large moves hit both names, and the diversification benefit stays modest.
How much do IEMG and XLI 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-xli.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/iemg-vs-xli/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: IEMG correlations · XLI correlations
