IEMG vs XLK: Correlation & Overlap
iShares Core MSCI Emerging Markets ETF (IEMG) and Technology Select Sector SPDR Fund (XLK) show a strong relationship: their 3-year correlation of weekly returns is 0.70. 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 XLK?
On 3 years of weekly data the IEMG/XLK correlation comes out at 0.70, strong. Recent behaviour matches the longer record: 0.74 over 1 year against 0.70 over 3. The 5-year figure is 0.65, and annualized covariance runs at 293.8 %².
By 3-year correlation, XLK places #22 of the 68 assets tracked against IEMG. On 12-month performance XLK holds a 7.4-point edge, +36.0% against +43.4%. Across three years, the rolling one-year figure varied moderately, from 0.45 to 0.79.
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 XLK: side by side
| IEMG (iShares Core MSCI Emerging Markets ETF) | XLK (Technology Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +36.0% | +43.4% |
| 5-year return | +50.7% | +145.2% |
| Volatility (ann.) | 17.4% | 24.0% |
| Beta vs S&P 500 | 0.84 | 1.50 |
| Max drawdown (3Y) | -17.2% | -25.7% |
| Dividend yield | 2.31% | 0.45% |
| Expense ratio | 0.09% | 0.08% |
| Assets under management | $152.2B | $115.4B |
| 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, XLK sits in the Technology category at State Street Investment Management, with $115.4B under management, 73 holdings, a 0.08% expense ratio, a 0.45% trailing dividend yield.
Portfolio overlap between IEMG and XLK
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 XLK |
|---|---|---|
| TEL | 0.01% | 0.40% |
Largest positions held only by IEMG: 2330 (13.28%), 005930 (6.27%), 000660 (4.78%), 700 (2.49%), 9988 (1.77%). Only by XLK: NVDA (13.91%), AAPL (12.61%), MSFT (10.10%), AVGO (4.61%), AMD (4.09%).
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 | XLK |
|---|---|---|
| 2022 | -20.0% | -27.7% |
| 2023 | +11.5% | +56.0% |
| 2024 | +6.5% | +21.6% |
| 2025 | +32.6% | +24.6% |
| 2026 | +23.6% | +31.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IEMG and XLK good diversifiers for each other?
To a limited degree. At 0.70 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 XLK?
The IEMG/XLK correlation stands at 0.70 on a 3-year window (1 year: 0.74, 5 years: 0.65), computed from weekly returns as of 2026-08-27.
Is XLK a good diversifier for IEMG?
To a limited degree. At 0.70 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 XLK overlap?
0.0% by weight, across 1 common holdings, based on issuer-disclosed portfolios as of 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/iemg-vs-xlk.json
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[](https://www.pairbook.io/pair/iemg-vs-xlk/)
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Related comparisons
Hubs: IEMG correlations · XLK correlations
