EWJ vs MTUM: Correlation & Overlap
How closely do iShares MSCI Japan ETF (EWJ) and iShares MSCI USA Momentum Factor ETF (MTUM) trade together? Their weekly returns over three years give a correlation of 0.66, which is strong. 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 MTUM?
On 3 years of weekly data the EWJ/MTUM correlation comes out at 0.66, strong. The relationship has been stable: the 1-year correlation (0.65) sits close to the 3-year figure. The 5-year figure is 0.66, and annualized covariance runs at 268.0 %².
Among the 70 assets we track against EWJ, MTUM ranks #26 by 3-year correlation. Twelve-month performance is nearly a tie, at +27.1% for EWJ and +25.2% for MTUM. The rolling one-year correlation stayed in a tight band between 0.51 and 0.75 over the past three years, which points to a structural rather than episodic relationship.
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 MTUM: side by side
| EWJ (iShares MSCI Japan ETF) | MTUM (iShares MSCI USA Momentum Factor ETF) | |
|---|---|---|
| 1-year return | +27.1% | +25.2% |
| 5-year return | +58.6% | +76.1% |
| Volatility (ann.) | 19.6% | 20.6% |
| Beta vs S&P 500 | 0.94 | 1.25 |
| Max drawdown (3Y) | -14.7% | -21.0% |
| Dividend yield | 3.86% | 0.62% |
| Expense ratio | 0.49% | 0.15% |
| Assets under management | $21.8B | $25.3B |
| Sector / category | ETF · International | ETF · US Style |
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. MTUM is a Large Blend fund from iShares: $25.3B under management, 126 holdings, a 0.15% expense ratio, a 0.62% trailing dividend yield.
Portfolio overlap between EWJ and MTUM
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 MTUM: MU (6.60%), AMD (5.09%), AVGO (4.25%), INTC (3.91%), XOM (3.78%).
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 | MTUM |
|---|---|---|
| 2022 | -17.7% | -18.3% |
| 2023 | +20.3% | +9.1% |
| 2024 | +7.0% | +32.9% |
| 2025 | +25.8% | +22.1% |
| 2026 | +19.3% | +21.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EWJ and MTUM good diversifiers for each other?
To a limited degree. At 0.66 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 MTUM?
Using weekly returns as of 2026-08-27: 0.66 over 3 years, with 0.65 over the last year and 0.66 over 5 years.
Is MTUM a good diversifier for EWJ?
To a limited degree. At 0.66 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 MTUM overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 0% by weight over 0 common positions.
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Related comparisons
Hubs: EWJ correlations · MTUM correlations
