EWJ vs FXI: Correlation & Overlap
How closely do iShares MSCI Japan ETF (EWJ) and iShares China Large-Cap ETF (FXI) trade together? Their weekly returns over three years give a correlation of 0.36, which is moderate. 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 EWJ and FXI?
Across a 3-year window, the weekly returns of EWJ and FXI correlate at 0.36, moderate. The relationship has been stable: the 1-year correlation (0.33) sits close to the 3-year figure. Stretching to 5 years gives 0.42, with an annualized covariance of 179.1 %².
Among the 70 assets we track against EWJ, FXI ranks #56 by 3-year correlation. The last year tells two different stories: EWJ led by 33.2 percentage points, +27.1% for EWJ against -6.1% for FXI. Across three years, the rolling one-year figure varied moderately, from 0.23 to 0.64.
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.
EWJ vs FXI: side by side
| EWJ (iShares MSCI Japan ETF) | FXI (iShares China Large-Cap ETF) | |
|---|---|---|
| 1-year return | +27.1% | -6.1% |
| 5-year return | +58.6% | -1.4% |
| Volatility (ann.) | 19.6% | 25.3% |
| Beta vs S&P 500 | 0.94 | 0.68 |
| Max drawdown (3Y) | -14.7% | -23.2% |
| Dividend yield | 3.86% | 1.87% |
| Expense ratio | 0.49% | 0.73% |
| Assets under management | $21.8B | $4.3B |
| Sector / category | ETF · International | ETF · International |
EWJ, iShares's Japan Stock fund, carries $21.8B under management, 168 holdings, a 0.49% expense ratio, a 3.86% trailing dividend yield. FXI, iShares's Greater China Region fund, carries $4.3B under management, 50 holdings, a 0.73% expense ratio, a 1.87% trailing dividend yield.
Portfolio overlap between EWJ and FXI
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 EWJ: 8306 (4.56%), 7203 (3.47%), 6857 (3.12%), 8035 (2.97%), 8316 (2.92%). Only by FXI: 9988 (9.72%), 939 (9.09%), 700 (8.51%), 1398 (6.35%), 1810 (5.16%).
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 | EWJ | FXI |
|---|---|---|
| 2022 | -17.7% | -20.7% |
| 2023 | +20.3% | -12.4% |
| 2024 | +7.0% | +29.0% |
| 2025 | +25.8% | +28.9% |
| 2026 | +19.3% | -7.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EWJ and FXI good diversifiers for each other?
Reasonably. At 0.36, EWJ and FXI keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between EWJ and FXI?
The EWJ/FXI correlation stands at 0.36 on a 3-year window (1 year: 0.33, 5 years: 0.42), computed from weekly returns as of 2026-08-27.
Is FXI a good diversifier for EWJ?
Reasonably. At 0.36, EWJ and FXI keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
How much do EWJ and FXI 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/ewj-vs-fxi.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/ewj-vs-fxi/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: EWJ correlations · FXI correlations
