IEMG vs XLRE: Correlation & Overlap
iShares Core MSCI Emerging Markets ETF (IEMG) and Real Estate Select Sector SPDR Fund (XLRE) show a moderate relationship: their 3-year correlation of weekly returns is 0.38. 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 XLRE?
Across a 3-year window, the weekly returns of IEMG and XLRE correlate at 0.38, moderate. Lately the two have drifted apart, with the 1-year correlation at 0.24 versus 0.38 over 3 years. Stretching to 5 years gives 0.43, with an annualized covariance of 110.4 %².
By 3-year correlation, XLRE places #54 of the 68 assets tracked against IEMG. Their recent paths diverged sharply: over the last 12 months IEMG outperformed by 26.5 percentage points (+36.0% for IEMG against +9.5% for XLRE). On a rolling one-year basis the correlation drifted between 0.24 and 0.70, 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 XLRE: side by side
| IEMG (iShares Core MSCI Emerging Markets ETF) | XLRE (Real Estate Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +36.0% | +9.5% |
| 5-year return | +50.7% | +11.4% |
| Volatility (ann.) | 17.4% | 16.7% |
| Beta vs S&P 500 | 0.84 | 0.57 |
| Max drawdown (3Y) | -17.2% | -16.6% |
| Dividend yield | 2.31% | 3.12% |
| Expense ratio | 0.09% | 0.08% |
| Assets under management | $152.2B | $8.6B |
| 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, XLRE sits in the Real Estate category at State Street Investment Management, with $8.6B under management, 31 holdings, a 0.08% expense ratio, a 3.12% trailing dividend yield.
Portfolio overlap between IEMG and XLRE
The two portfolios are largely distinct: 0% of the funds' weight sits in the same underlying holdings (0 common positions). Correlation tells you they move together; overlap tells you why.
Largest positions held only by IEMG: 2330 (13.28%), 005930 (6.27%), 000660 (4.78%), 700 (2.49%), 9988 (1.77%). Only by XLRE: WELL (11.43%), PLD (9.06%), EQIX (7.14%), AMT (5.49%), DLR (5.01%).
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 | XLRE |
|---|---|---|
| 2022 | -20.0% | -26.2% |
| 2023 | +11.5% | +12.4% |
| 2024 | +6.5% | +5.1% |
| 2025 | +32.6% | +2.6% |
| 2026 | +23.6% | +12.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IEMG and XLRE good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.38 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between IEMG and XLRE?
The IEMG/XLRE correlation stands at 0.38 on a 3-year window (1 year: 0.24, 5 years: 0.43), computed from weekly returns as of 2026-08-27.
Is XLRE a good diversifier for IEMG?
Yes, to a useful degree: a correlation of 0.38 leaves real independence between the two, which historically damped combined volatility.
How much do IEMG and XLRE overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 0% by weight over 0 common positions.
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Related comparisons
Hubs: IEMG correlations · XLRE correlations
