EEM vs EWJ: Correlation & Overlap
Measured on weekly returns over the past three years, iShares MSCI Emerging Markets ETF (EEM) and iShares MSCI Japan ETF (EWJ) carry a correlation of 0.71, a strong link. By holdings, the two funds overlap 0.2% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are EEM and EWJ?
Across a 3-year window, the weekly returns of EEM and EWJ correlate at 0.71, strong. The relationship has been stable: the 1-year correlation (0.79) sits close to the 3-year figure. Stretching to 5 years gives 0.72, with an annualized covariance of 251.5 %².
By 3-year correlation, EWJ places #16 of the 67 assets tracked against EEM. Over the last 12 months EEM came out ahead by 11.0 percentage points (+38.1% against +27.1%). Across three years, the rolling one-year figure varied moderately, from 0.52 to 0.80.
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.
EEM vs EWJ: side by side
| EEM (iShares MSCI Emerging Markets ETF) | EWJ (iShares MSCI Japan ETF) | |
|---|---|---|
| 1-year return | +38.1% | +27.1% |
| 5-year return | +47.1% | +58.6% |
| Volatility (ann.) | 18.0% | 19.6% |
| Beta vs S&P 500 | 0.85 | 0.94 |
| Max drawdown (3Y) | -17.3% | -14.7% |
| Dividend yield | 1.73% | 3.86% |
| Expense ratio | 0.72% | 0.49% |
| Assets under management | $29.2B | $21.8B |
| Sector / category | ETF · International | ETF · International |
EEM is a Diversified Emerging Mkts fund from iShares: $29.2B under management, 968 holdings, a 0.72% expense ratio, a 1.73% 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 EEM and EWJ
The two portfolios are largely distinct, with 4 holdings in common adding up to 0.2% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
| Common holding | Weight in EEM | Weight in EWJ |
|---|---|---|
| 1801 | 0.16% | 0.22% |
| 2801 | 0.04% | 0.15% |
| 7203 | 0.03% | 3.47% |
| 7202 | 0.01% | 0.14% |
Largest positions held only by EEM: 2330 (15.14%), 005930 (7.15%), 000660 (5.45%), 700 (2.83%), 9988 (2.02%). Only by EWJ: 8306 (4.56%), 6857 (3.12%), 8035 (2.97%), 8316 (2.92%), 6501 (2.80%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 4 common positions shown.
Year-by-year returns
| Year | EEM | EWJ |
|---|---|---|
| 2022 | -20.6% | -17.7% |
| 2023 | +8.9% | +20.3% |
| 2024 | +6.5% | +7.0% |
| 2025 | +34.0% | +25.8% |
| 2026 | +24.2% | +19.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EEM and EWJ good diversifiers for each other?
To a limited degree. At 0.71 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between EEM and EWJ?
Using weekly returns as of 2026-08-27: 0.71 over 3 years, with 0.79 over the last year and 0.72 over 5 years.
Is EWJ a good diversifier for EEM?
To a limited degree. At 0.71 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
How much do EEM and EWJ overlap?
0.2% by weight, across 4 common holdings, based on issuer-disclosed portfolios as of 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/eem-vs-ewj.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/eem-vs-ewj/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: EEM correlations · EWJ correlations
