ACWI vs EWJ: Correlation & Overlap
How closely do iShares MSCI ACWI ETF (ACWI) and iShares MSCI Japan ETF (EWJ) trade together? Their weekly returns over three years give a correlation of 0.80, which is very strong. The two funds also share 5.1% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ACWI and EWJ?
Across a 3-year window, the weekly returns of ACWI and EWJ correlate at 0.80, very strong, meaning they move nearly in lockstep. The relationship has been stable: the 1-year correlation (0.79) sits close to the 3-year figure. Stretching to 5 years gives 0.80, with an annualized covariance of 215.9 %².
By 3-year correlation, EWJ places #46 of the 119 assets tracked against ACWI. Their 12-month results are close: +22.7% for ACWI against +27.1% for EWJ. Stability stands out here, with the rolling one-year correlation confined to 0.72 through 0.85.
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.
ACWI vs EWJ: side by side
| ACWI (iShares MSCI ACWI ETF) | EWJ (iShares MSCI Japan ETF) | |
|---|---|---|
| 1-year return | +22.7% | +27.1% |
| 5-year return | +69.0% | +58.6% |
| Volatility (ann.) | 13.8% | 19.6% |
| Beta vs S&P 500 | 0.92 | 0.94 |
| Max drawdown (3Y) | -16.5% | -14.7% |
| Dividend yield | 1.44% | 3.86% |
| Expense ratio | 0.32% | 0.49% |
| Assets under management | $32.5B | $21.8B |
| Sector / category | ETF · Global | ETF · International |
ACWI is a Global Large-Stock Blend fund from iShares: $32.5B under management, 1590 holdings, a 0.32% expense ratio, a 1.44% trailing dividend yield. EWJ, iShares's Japan Stock fund, carries $21.8B under management, 168 holdings, a 0.49% expense ratio, a 3.86% trailing dividend yield.
Portfolio overlap between ACWI and EWJ
The two portfolios are largely distinct, with 158 holdings in common adding up to 5.1% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
| Common holding | Weight in ACWI | Weight in EWJ |
|---|---|---|
| 8306 | 0.23% | 4.56% |
| 7203 | 0.17% | 3.47% |
| 6857 | 0.16% | 3.12% |
| 8316 | 0.15% | 2.92% |
| 8035 | 0.15% | 2.97% |
| 6098 | 0.14% | 2.71% |
| 6501 | 0.14% | 2.80% |
| 6758 | 0.14% | 2.70% |
| 8411 | 0.12% | 2.35% |
| 9984 | 0.11% | 2.29% |
| 285A | 0.10% | 1.87% |
| 8058 | 0.09% | 1.70% |
| 6861 | 0.09% | 1.83% |
| 9983 | 0.08% | 1.64% |
| 7011 | 0.08% | 1.50% |
Largest positions held only by ACWI: NVDA (4.64%), AAPL (4.41%), MSFT (3.35%), AMZN (2.41%), GOOGL (1.91%). Only by EWJ: 4091 (0.12%), 9602 (0.10%), 7181 (0.10%), 9435 (0.09%), 4768 (0.09%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 15 common positions shown.
Year-by-year returns
| Year | ACWI | EWJ |
|---|---|---|
| 2022 | -18.4% | -17.7% |
| 2023 | +22.3% | +20.3% |
| 2024 | +17.4% | +7.0% |
| 2025 | +22.4% | +25.8% |
| 2026 | +14.9% | +19.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ACWI and EWJ good diversifiers for each other?
No. With a correlation of 0.80, ACWI and EWJ move nearly in lockstep, so holding both adds very little diversification.
FAQ
What is the correlation between ACWI and EWJ?
The ACWI/EWJ correlation stands at 0.80 on a 3-year window (1 year: 0.79, 5 years: 0.80), computed from weekly returns as of 2026-08-27.
Is EWJ a good diversifier for ACWI?
No. With a correlation of 0.80, ACWI and EWJ move nearly in lockstep, so holding both adds very little diversification.
How much do ACWI and EWJ overlap?
The two funds share 158 holdings amounting to 5.1% of weight, per issuer portfolio files dated 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/acwi-vs-ewj.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/acwi-vs-ewj/)
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Related comparisons
Hubs: ACWI correlations · EWJ correlations
