EWJ vs QUAL: Correlation & Overlap
How closely do iShares MSCI Japan ETF (EWJ) and iShares MSCI USA Quality Factor ETF (QUAL) trade together? Their weekly returns over three years give a correlation of 0.67, 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 QUAL?
Over the past 3 years, EWJ and QUAL moved with a correlation of 0.67, which is strong. Little has changed lately, as the 1-year reading of 0.64 lands near the 3-year figure. Over 5 years the correlation is 0.67, and the annualized covariance of weekly returns is 182.6 %².
Among the 70 assets we track against EWJ, QUAL ranks #22 by 3-year correlation. Over the last 12 months EWJ came out ahead by 7.4 percentage points (+27.1% against +19.7%). Stability stands out here, with the rolling one-year correlation confined to 0.57 through 0.76.
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 QUAL: side by side
| EWJ (iShares MSCI Japan ETF) | QUAL (iShares MSCI USA Quality Factor ETF) | |
|---|---|---|
| 1-year return | +27.1% | +19.7% |
| 5-year return | +58.6% | +68.0% |
| Volatility (ann.) | 19.6% | 14.0% |
| Beta vs S&P 500 | 0.94 | 0.93 |
| Max drawdown (3Y) | -14.7% | -18.0% |
| Dividend yield | 3.86% | 0.86% |
| Expense ratio | 0.49% | 0.15% |
| Assets under management | $21.8B | $46.5B |
| Sector / category | ETF · International | ETF · US Style |
EWJ, iShares's Japan Stock fund, carries $21.8B under management, 168 holdings, a 0.49% expense ratio, a 3.86% trailing dividend yield. QUAL, iShares's Large Blend fund, carries $46.5B under management, 123 holdings, a 0.15% expense ratio, a 0.86% trailing dividend yield.
Portfolio overlap between EWJ and QUAL
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 QUAL: MSFT (7.51%), AAPL (6.62%), NVDA (6.00%), META (3.75%), LLY (3.72%).
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 | QUAL |
|---|---|---|
| 2022 | -17.7% | -20.5% |
| 2023 | +20.3% | +30.9% |
| 2024 | +7.0% | +22.3% |
| 2025 | +25.8% | +12.7% |
| 2026 | +19.3% | +13.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EWJ and QUAL good diversifiers for each other?
To a limited degree. At 0.67 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 QUAL?
Using weekly returns as of 2026-08-27: 0.67 over 3 years, with 0.64 over the last year and 0.67 over 5 years.
Is QUAL a good diversifier for EWJ?
To a limited degree. At 0.67 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 QUAL 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-qual.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/ewj-vs-qual/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: EWJ correlations · QUAL correlations
