DGRO vs EWJ: Correlation & Overlap
Measured on weekly returns over the past three years, iShares Core Dividend Growth ETF (DGRO) and iShares MSCI Japan ETF (EWJ) carry a correlation of 0.65, a strong link. The two funds also share 0% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are DGRO and EWJ?
Over the past 3 years, DGRO and EWJ moved with a correlation of 0.65, which is strong. The relationship has been stable: the 1-year correlation (0.57) sits close to the 3-year figure. Over 5 years the correlation is 0.65, and the annualized covariance of weekly returns is 144.6 %².
Within DGRO's tracked universe of 138 assets, EWJ comes in at #48 by 3-year correlation. On 12-month performance EWJ holds a 6.1-point edge, +21.0% against +27.1%. The rolling one-year correlation stayed in a tight band between 0.53 and 0.77 over the past three years, which points to a structural rather than episodic relationship. Note the risk asymmetry: EWJ runs 1.7 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.
DGRO vs EWJ: side by side
| DGRO (iShares Core Dividend Growth ETF) | EWJ (iShares MSCI Japan ETF) | |
|---|---|---|
| 1-year return | +21.0% | +27.1% |
| 5-year return | +67.9% | +58.6% |
| Volatility (ann.) | 11.4% | 19.6% |
| Beta vs S&P 500 | 0.65 | 0.94 |
| Max drawdown (3Y) | -14.0% | -14.7% |
| Dividend yield | 1.89% | 3.86% |
| Expense ratio | 0.08% | 0.49% |
| Assets under management | $42.8B | $21.8B |
| Sector / category | ETF · Dividend | ETF · International |
DGRO is a Large Value fund from iShares: $42.8B under management, 383 holdings, a 0.08% expense ratio, a 1.89% 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 DGRO and EWJ
The two portfolios are largely distinct. Weighing the shared positions, 0% of the two funds is identical, spread across 0 common holdings. That shared book is a large part of why the returns line up.
Largest positions held only by DGRO: MSFT (3.39%), JNJ (3.16%), JPM (3.14%), ABBV (3.03%), XOM (2.86%). Only by EWJ: 8306 (4.56%), 7203 (3.47%), 6857 (3.12%), 8035 (2.97%), 8316 (2.92%).
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 | DGRO | EWJ |
|---|---|---|
| 2022 | -7.9% | -17.7% |
| 2023 | +10.5% | +20.3% |
| 2024 | +16.6% | +7.0% |
| 2025 | +15.7% | +25.8% |
| 2026 | +15.2% | +19.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are DGRO and EWJ good diversifiers for each other?
Somewhat, no more. With 0.65 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between DGRO and EWJ?
Using weekly returns as of 2026-08-27: 0.65 over 3 years, with 0.57 over the last year and 0.65 over 5 years.
Is EWJ a good diversifier for DGRO?
Somewhat, no more. With 0.65 correlation, most large moves hit both names, and the diversification benefit stays modest.
How much do DGRO and EWJ overlap?
The two funds share 0 holdings amounting to 0% of weight, per issuer portfolio files dated 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/dgro-vs-ewj.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/dgro-vs-ewj/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: DGRO correlations · EWJ correlations
