EWJ vs IWM: Correlation & Overlap
Measured on weekly returns over the past three years, iShares MSCI Japan ETF (EWJ) and iShares Russell 2000 ETF (IWM) carry a correlation of 0.63, a strong link. By holdings, the two funds overlap 0% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are EWJ and IWM?
Over the past 3 years, EWJ and IWM moved with a correlation of 0.63, which is strong. Recent behaviour matches the longer record: 0.62 over 1 year against 0.63 over 3. Over 5 years the correlation is 0.66, and the annualized covariance of weekly returns is 245.3 %².
By 3-year correlation, IWM places #35 of the 70 assets tracked against EWJ. Twelve-month performance is nearly a tie, at +27.1% for EWJ and +28.4% for IWM. Stability stands out here, with the rolling one-year correlation confined to 0.57 through 0.73.
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 IWM: side by side
| EWJ (iShares MSCI Japan ETF) | IWM (iShares Russell 2000 ETF) | |
|---|---|---|
| 1-year return | +27.1% | +28.4% |
| 5-year return | +58.6% | +41.5% |
| Volatility (ann.) | 19.6% | 19.8% |
| Beta vs S&P 500 | 0.94 | 1.06 |
| Max drawdown (3Y) | -14.7% | -27.5% |
| Dividend yield | 3.86% | 0.91% |
| Expense ratio | 0.49% | 0.19% |
| Assets under management | $21.8B | $80.1B |
| Sector / category | ETF · International | ETF · US Small & Mid Cap |
EWJ is a Japan Stock fund from iShares: $21.8B under management, 168 holdings, a 0.49% expense ratio, a 3.86% trailing dividend yield. IWM, iShares's Small Blend fund, carries $80.1B under management, 1757 holdings, a 0.19% expense ratio, a 0.91% trailing dividend yield.
Portfolio overlap between EWJ and IWM
The two portfolios are largely distinct: 0% of the funds' weight sits in the same underlying holdings (0 common positions). Correlation tells you they move together; overlap tells you why.
Largest positions held only by EWJ: 8306 (4.56%), 7203 (3.47%), 6857 (3.12%), 8035 (2.97%), 8316 (2.92%). Only by IWM: MOGA (0.35%), UMBF (0.34%), CYTK (0.33%), GKOS (0.33%), EAT (0.33%).
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 | IWM |
|---|---|---|
| 2022 | -17.7% | -20.5% |
| 2023 | +20.3% | +16.8% |
| 2024 | +7.0% | +11.4% |
| 2025 | +25.8% | +12.7% |
| 2026 | +19.3% | +22.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EWJ and IWM good diversifiers for each other?
Only partially. A correlation of 0.63 means EWJ and IWM share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between EWJ and IWM?
The EWJ/IWM correlation stands at 0.63 on a 3-year window (1 year: 0.62, 5 years: 0.66), computed from weekly returns as of 2026-08-27.
Is IWM a good diversifier for EWJ?
Only partially. A correlation of 0.63 means EWJ and IWM share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
How much do EWJ and IWM 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-iwm.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/ewj-vs-iwm/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: EWJ correlations · IWM correlations
