EWJ vs IBB: Correlation & Overlap
How closely do iShares MSCI Japan ETF (EWJ) and iShares Biotechnology ETF (IBB) trade together? Their weekly returns over three years give a correlation of 0.50, 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 IBB?
On 3 years of weekly data the EWJ/IBB correlation comes out at 0.50, moderate. Lately the two have drifted apart, with the 1-year correlation at 0.28 versus 0.50 over 3 years. The 5-year figure is 0.52, and annualized covariance runs at 203.6 %².
Among the 70 assets we track against EWJ, IBB ranks #45 by 3-year correlation. The last year tells two different stories: IBB led by 28.3 percentage points, +27.1% for EWJ against +55.4% for IBB. On a rolling one-year basis the correlation drifted between 0.37 and 0.69, a moderate band.
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 IBB: side by side
| EWJ (iShares MSCI Japan ETF) | IBB (iShares Biotechnology ETF) | |
|---|---|---|
| 1-year return | +27.1% | +55.4% |
| 5-year return | +58.6% | +26.6% |
| Volatility (ann.) | 19.6% | 20.7% |
| Beta vs S&P 500 | 0.94 | 0.81 |
| Max drawdown (3Y) | -14.7% | -24.9% |
| Dividend yield | 3.86% | 0.22% |
| Expense ratio | 0.49% | 0.44% |
| Assets under management | $21.8B | $9.2B |
| Sector / category | ETF · International | ETF · Thematic |
On the fund side, EWJ sits in the Japan Stock category at iShares, with $21.8B under management, 168 holdings, a 0.49% expense ratio, a 3.86% trailing dividend yield. IBB, iShares's Health fund, carries $9.2B under management, 235 holdings, a 0.44% expense ratio, a 0.22% trailing dividend yield.
Portfolio overlap between EWJ and IBB
The two portfolios are largely distinct, with 0 holdings in common adding up to 0% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
Largest positions held only by EWJ: 8306 (4.56%), 7203 (3.47%), 6857 (3.12%), 8035 (2.97%), 8316 (2.92%). Only by IBB: AMGN (8.43%), VRTX (7.89%), GILD (7.10%), REGN (5.68%), MRNA (3.76%).
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 | IBB |
|---|---|---|
| 2022 | -17.7% | -13.7% |
| 2023 | +20.3% | +3.8% |
| 2024 | +7.0% | -2.4% |
| 2025 | +25.8% | +28.0% |
| 2026 | +19.3% | +27.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EWJ and IBB good diversifiers for each other?
To a limited degree. At 0.50 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 EWJ and IBB?
Using weekly returns as of 2026-08-27: 0.50 over 3 years, with 0.28 over the last year and 0.52 over 5 years.
Is IBB a good diversifier for EWJ?
To a limited degree. At 0.50 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 EWJ and IBB overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 0% by weight over 0 common positions.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/ewj-vs-ibb.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/ewj-vs-ibb/)
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Related comparisons
Hubs: EWJ correlations · IBB correlations
