EWJ vs QQQ: Correlation & Overlap
How closely do iShares MSCI Japan ETF (EWJ) and Invesco QQQ Trust (QQQ) trade together? Their weekly returns over three years give a correlation of 0.65, which is strong. 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 QQQ?
Across a 3-year window, the weekly returns of EWJ and QQQ correlate at 0.65, strong. Recent behaviour matches the longer record: 0.61 over 1 year against 0.65 over 3. Stretching to 5 years gives 0.67, with an annualized covariance of 249.4 %².
Among the 70 assets we track against EWJ, QQQ ranks #32 by 3-year correlation. Twelve-month performance is nearly a tie, at +27.1% for EWJ and +26.3% for QQQ. On a rolling one-year basis the correlation drifted between 0.49 and 0.74, 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 QQQ: side by side
| EWJ (iShares MSCI Japan ETF) | QQQ (Invesco QQQ Trust) | |
|---|---|---|
| 1-year return | +27.1% | +26.3% |
| 5-year return | +58.6% | +95.4% |
| Volatility (ann.) | 19.6% | 19.6% |
| Beta vs S&P 500 | 0.94 | 1.28 |
| Max drawdown (3Y) | -14.7% | -22.8% |
| Dividend yield | 3.86% | 0.44% |
| Expense ratio | 0.49% | 0.18% |
| Assets under management | $21.8B | $452.8B |
| Sector / category | ETF · International | ETF · US Growth & Tech |
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. QQQ is a Large Growth fund from Invesco: $452.8B under management, 104 holdings, a 0.18% expense ratio, a 0.44% trailing dividend yield.
Portfolio overlap between EWJ and QQQ
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 QQQ: NVDA (8.15%), AAPL (7.39%), MSFT (5.93%), MU (4.69%), AMZN (4.50%).
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 | QQQ |
|---|---|---|
| 2022 | -17.7% | -32.6% |
| 2023 | +20.3% | +54.9% |
| 2024 | +7.0% | +25.6% |
| 2025 | +25.8% | +20.8% |
| 2026 | +19.3% | +17.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EWJ and QQQ good diversifiers for each other?
Only partially. A correlation of 0.65 means EWJ and QQQ 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 QQQ?
Using weekly returns as of 2026-08-27: 0.65 over 3 years, with 0.61 over the last year and 0.67 over 5 years.
Is QQQ a good diversifier for EWJ?
Only partially. A correlation of 0.65 means EWJ and QQQ share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
How much do EWJ and QQQ overlap?
0% by weight, across 0 common holdings, based on issuer-disclosed portfolios as of 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/ewj-vs-qqq.json
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Hubs: EWJ correlations · QQQ correlations
