IEMG vs XLV: Correlation & Overlap
iShares Core MSCI Emerging Markets ETF (IEMG) and Health Care Select Sector SPDR Fund (XLV) show a weak relationship: their 3-year correlation of weekly returns is 0.26. Looking through to holdings, 0.0% of the two portfolios is the same by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IEMG and XLV?
Across a 3-year window, the weekly returns of IEMG and XLV correlate at 0.26, weak. Lately the two have drifted apart, with the 1-year correlation at 0.03 versus 0.26 over 3 years. Stretching to 5 years gives 0.31, with an annualized covariance of 67.3 %².
Within IEMG's tracked universe of 68 assets, XLV comes in at #55 by 3-year correlation. On 12-month performance IEMG holds a 8.5-point edge, +36.0% against +27.5%. This link changes with the market regime, having swung between 0.05 and 0.56 on a rolling one-year basis.
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 XLV: side by side
| IEMG (iShares Core MSCI Emerging Markets ETF) | XLV (Health Care Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +36.0% | +27.5% |
| 5-year return | +50.7% | +37.4% |
| Volatility (ann.) | 17.4% | 14.7% |
| Beta vs S&P 500 | 0.84 | 0.42 |
| Max drawdown (3Y) | -17.2% | -17.1% |
| Dividend yield | 2.31% | 1.56% |
| Expense ratio | 0.09% | 0.08% |
| Assets under management | $152.2B | $41.7B |
| Sector / category | ETF · International | Sector ETF |
IEMG, iShares's Diversified Emerging Mkts fund, carries $152.2B under management, 1824 holdings, a 0.09% expense ratio, a 2.31% trailing dividend yield. On the fund side, XLV sits in the Health category at State Street Investment Management, with $41.7B under management, 61 holdings, a 0.08% expense ratio, a 1.56% trailing dividend yield.
Portfolio overlap between IEMG and XLV
The two portfolios are largely distinct. Weighing the shared positions, 0.0% of the two funds is identical, spread across 1 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in IEMG | Weight in XLV |
|---|---|---|
| BDX | 0.02% | 0.84% |
Largest positions held only by IEMG: 2330 (13.28%), 005930 (6.27%), 000660 (4.78%), 700 (2.49%), 9988 (1.77%). Only by XLV: LLY (15.03%), JNJ (10.38%), ABBV (7.42%), MRK (6.04%), UNH (5.82%).
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 | XLV |
|---|---|---|
| 2022 | -20.0% | -2.1% |
| 2023 | +11.5% | +2.1% |
| 2024 | +6.5% | +2.5% |
| 2025 | +32.6% | +14.5% |
| 2026 | +23.6% | +11.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IEMG and XLV good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.26 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between IEMG and XLV?
As of 2026-08-27, the correlation of weekly returns between IEMG and XLV is 0.26 over 3 years, 0.03 over 1 year and 0.31 over 5 years.
Is XLV a good diversifier for IEMG?
Yes, to a useful degree: a correlation of 0.26 leaves real independence between the two, which historically damped combined volatility.
How much do IEMG and XLV 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-xlv.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/iemg-vs-xlv/)
Free with attribution; caching and terms are described in the API documentation.
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Hubs: IEMG correlations · XLV correlations
