EWJ vs VEA: Correlation & Overlap
Measured on weekly returns over the past three years, iShares MSCI Japan ETF (EWJ) and Vanguard FTSE Developed Markets ETF (VEA) carry a correlation of 0.88, a very strong link. The two funds also share 16.4% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are EWJ and VEA?
Over the past 3 years, EWJ and VEA moved with a correlation of 0.88, which is very strong, meaning they move nearly in lockstep. The relationship has been stable: the 1-year correlation (0.87) sits close to the 3-year figure. Over 5 years the correlation is 0.86, and the annualized covariance of weekly returns is 259.9 %².
Few assets follow EWJ as closely as VEA, which ranks #1 of 70 tracked partners. Twelve-month performance is nearly a tie, at +27.1% for EWJ and +28.5% for VEA. The link looks structural: the rolling one-year correlation barely moved, holding between 0.78 and 0.93.
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 VEA: side by side
| EWJ (iShares MSCI Japan ETF) | VEA (Vanguard FTSE Developed Markets ETF) | |
|---|---|---|
| 1-year return | +27.1% | +28.5% |
| 5-year return | +58.6% | +63.5% |
| Volatility (ann.) | 19.6% | 15.1% |
| Beta vs S&P 500 | 0.94 | 0.79 |
| Max drawdown (3Y) | -14.7% | -13.5% |
| Dividend yield | 3.86% | 2.56% |
| Expense ratio | 0.49% | 0.03% |
| Assets under management | $21.8B | $314.9B |
| Sector / category | ETF · International | ETF · International |
EWJ, iShares's Japan Stock fund, carries $21.8B under management, 168 holdings, a 0.49% expense ratio, a 3.86% trailing dividend yield. VEA is a Foreign Large Blend fund from Vanguard: $314.9B under management, 3769 holdings, a 0.03% expense ratio, a 2.56% trailing dividend yield.
Portfolio overlap between EWJ and VEA
The two portfolios partially overlap, with 168 holdings in common adding up to 16.4% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
| Common holding | Weight in EWJ | Weight in VEA |
|---|---|---|
| 8306 | 4.56% | 0.77% |
| 7203 | 3.47% | 0.64% |
| 8316 | 2.92% | 0.49% |
| 8035 | 2.97% | 0.46% |
| 6501 | 2.80% | 0.46% |
| 6857 | 3.12% | 0.45% |
| 6758 | 2.70% | 0.44% |
| 8411 | 2.35% | 0.39% |
| 9984 | 2.29% | 0.37% |
| 6098 | 2.71% | 0.34% |
| 8766 | 1.63% | 0.30% |
| 8058 | 1.70% | 0.30% |
| 6861 | 1.83% | 0.30% |
| 285A | 1.87% | 0.29% |
| 9983 | 1.64% | 0.28% |
Largest positions held only by EWJ: . Only by VEA: 005930 (2.53%), ASML (2.00%), 000660 (1.98%), HSBA (1.15%), ROP (0.97%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 15 common positions shown.
Year-by-year returns
| Year | EWJ | VEA |
|---|---|---|
| 2022 | -17.7% | -15.3% |
| 2023 | +20.3% | +17.9% |
| 2024 | +7.0% | +3.1% |
| 2025 | +25.8% | +35.2% |
| 2026 | +19.3% | +18.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EWJ and VEA good diversifiers for each other?
Not really. At 0.88, the two trade almost as one position, and owning both buys little extra protection.
FAQ
What is the correlation between EWJ and VEA?
The EWJ/VEA correlation stands at 0.88 on a 3-year window (1 year: 0.87, 5 years: 0.86), computed from weekly returns as of 2026-08-27.
Is VEA a good diversifier for EWJ?
Not really. At 0.88, the two trade almost as one position, and owning both buys little extra protection.
How much do EWJ and VEA overlap?
The two funds share 168 holdings amounting to 16.4% of weight, per issuer portfolio files dated 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/ewj-vs-vea.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/ewj-vs-vea/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: EWJ correlations · VEA correlations
