KWEB vs VWO: Correlation
KraneShares CSI China Internet ETF (KWEB) and Vanguard FTSE Emerging Markets ETF (VWO) show a strong relationship: their 3-year correlation of weekly returns is 0.73.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are KWEB and VWO?
Across a 3-year window, the weekly returns of KWEB and VWO correlate at 0.73, strong. Little has changed lately, as the 1-year reading of 0.63 lands near the 3-year figure. Stretching to 5 years gives 0.76, with an annualized covariance of 376.7 %².
Within KWEB's tracked universe of 40 assets, VWO comes in at #4 by 3-year correlation. Correlation aside, the last 12 months split them widely, with VWO ahead by 47.7 points (-26.1% versus +21.6%). The link looks structural: the rolling one-year correlation barely moved, holding between 0.64 and 0.87. Note the risk asymmetry: KWEB runs 2.2 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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.
KWEB vs VWO: side by side
| KWEB (KraneShares CSI China Internet ETF) | VWO (Vanguard FTSE Emerging Markets ETF) | |
|---|---|---|
| 1-year return | -26.1% | +21.6% |
| 5-year return | -36.2% | +38.2% |
| Volatility (ann.) | 33.9% | 15.2% |
| Beta vs S&P 500 | 0.90 | 0.75 |
| Max drawdown (3Y) | -41.6% | -17.4% |
| Dividend yield | – | 2.36% |
| Expense ratio | – | 0.06% |
| Assets under management | – | $162.0B |
| Sector / category | ETF · Thematic | ETF · International |
On the fund side, VWO sits in the Diversified Emerging Mkts category at Vanguard, with $162.0B under management, 4113 holdings, a 0.06% expense ratio, a 2.36% trailing dividend yield.
Year-by-year returns
| Year | KWEB | VWO |
|---|---|---|
| 2022 | -17.2% | -18.0% |
| 2023 | -9.1% | +9.3% |
| 2024 | +12.0% | +10.6% |
| 2025 | +23.5% | +25.6% |
| 2026 | -23.3% | +13.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are KWEB and VWO good diversifiers for each other?
Somewhat, no more. With 0.73 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between KWEB and VWO?
Using weekly returns as of 2026-08-27: 0.73 over 3 years, with 0.63 over the last year and 0.76 over 5 years.
Is VWO a good diversifier for KWEB?
Somewhat, no more. With 0.73 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.73 mean?
A reading of 0.73 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/kweb-vs-vwo.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/kweb-vs-vwo/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: KWEB correlations · VWO correlations
