EWJ vs SCHD: Correlation & Overlap
How closely do iShares MSCI Japan ETF (EWJ) and Schwab US Dividend Equity ETF (SCHD) trade together? Their weekly returns over three years give a correlation of 0.49, which is moderate. Looking through to holdings, 0% of the two portfolios is the same by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are EWJ and SCHD?
Over the past 3 years, EWJ and SCHD moved with a correlation of 0.49, which is moderate. Lately the two have drifted apart, with the 1-year correlation at 0.30 versus 0.49 over 3 years. Over 5 years the correlation is 0.55, and the annualized covariance of weekly returns is 123.2 %².
Within EWJ's tracked universe of 70 assets, SCHD comes in at #47 by 3-year correlation. Their 12-month results are close: +27.1% for EWJ against +29.6% for SCHD. Across three years, the rolling one-year figure varied moderately, from 0.34 to 0.70. Note the risk asymmetry: EWJ runs 1.5 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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 SCHD: side by side
| EWJ (iShares MSCI Japan ETF) | SCHD (Schwab US Dividend Equity ETF) | |
|---|---|---|
| 1-year return | +27.1% | +29.6% |
| 5-year return | +58.6% | +60.9% |
| Volatility (ann.) | 19.6% | 12.9% |
| Beta vs S&P 500 | 0.94 | 0.52 |
| Max drawdown (3Y) | -14.7% | -16.1% |
| Dividend yield | 3.86% | 3.13% |
| Expense ratio | 0.49% | 0.06% |
| Assets under management | $21.8B | $104.2B |
| Sector / category | ETF · International | ETF · Dividend |
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. SCHD, Schwab ETFs's Large Value fund, carries $104.2B under management, 101 holdings, a 0.06% expense ratio, a 3.13% trailing dividend yield.
Portfolio overlap between EWJ and SCHD
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 SCHD: MRK (4.92%), ABT (4.83%), AMGN (4.80%), KO (4.22%), VZ (3.97%).
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 | SCHD |
|---|---|---|
| 2022 | -17.7% | -3.3% |
| 2023 | +20.3% | +4.5% |
| 2024 | +7.0% | +11.7% |
| 2025 | +25.8% | +4.3% |
| 2026 | +19.3% | +29.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EWJ and SCHD good diversifiers for each other?
A fair diversifier. At 0.49, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between EWJ and SCHD?
The EWJ/SCHD correlation stands at 0.49 on a 3-year window (1 year: 0.30, 5 years: 0.55), computed from weekly returns as of 2026-08-27.
Is SCHD a good diversifier for EWJ?
A fair diversifier. At 0.49, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
How much do EWJ and SCHD 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-schd.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/ewj-vs-schd/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: EWJ correlations · SCHD correlations
