EWJ vs SPY: Correlation & Overlap
How closely do iShares MSCI Japan ETF (EWJ) and SPDR S&P 500 ETF Trust (SPY) trade together? Their weekly returns over three years give a correlation of 0.70, 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 SPY?
Across a 3-year window, the weekly returns of EWJ and SPY correlate at 0.70, strong. Recent behaviour matches the longer record: 0.65 over 1 year against 0.70 over 3. Stretching to 5 years gives 0.70, with an annualized covariance of 197.2 %².
By 3-year correlation, SPY places #18 of the 70 assets tracked against EWJ. The trailing year gives EWJ the advantage: +27.1% versus +20.6%, a 6.5-point spread. The rolling one-year correlation stayed in a tight band between 0.57 and 0.79 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 SPY: side by side
| EWJ (iShares MSCI Japan ETF) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | +27.1% | +20.6% |
| 5-year return | +58.6% | +82.4% |
| Volatility (ann.) | 19.6% | 14.5% |
| Beta vs S&P 500 | 0.94 | 1.00 |
| Max drawdown (3Y) | -14.7% | -18.8% |
| Dividend yield | 3.86% | 1.01% |
| Expense ratio | 0.49% | 0.09% |
| Assets under management | $21.8B | $795.3B |
| Sector / category | ETF · International | ETF · US Large Cap |
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. SPY is a Large Blend fund from State Street Investment Management: $795.3B under management, 504 holdings, a 0.09% expense ratio, a 1.01% trailing dividend yield.
Portfolio overlap between EWJ and SPY
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 SPY: NVDA (7.68%), AAPL (6.96%), MSFT (5.58%), AMZN (3.85%), GOOGL (3.03%).
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 | SPY |
|---|---|---|
| 2022 | -17.7% | -18.2% |
| 2023 | +20.3% | +26.2% |
| 2024 | +7.0% | +24.9% |
| 2025 | +25.8% | +17.7% |
| 2026 | +19.3% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EWJ and SPY good diversifiers for each other?
Somewhat, no more. With 0.70 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between EWJ and SPY?
The EWJ/SPY correlation stands at 0.70 on a 3-year window (1 year: 0.65, 5 years: 0.70), computed from weekly returns as of 2026-08-27.
Is SPY a good diversifier for EWJ?
Somewhat, no more. With 0.70 correlation, most large moves hit both names, and the diversification benefit stays modest.
How much do EWJ and SPY overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 0% by weight over 0 common positions.
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