EWJ vs VIG: Correlation & Overlap
How closely do iShares MSCI Japan ETF (EWJ) and Vanguard Dividend Appreciation ETF (VIG) 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 VIG?
Over the past 3 years, EWJ and VIG moved with a correlation of 0.67, which is strong. The relationship has been stable: the 1-year correlation (0.65) sits close to the 3-year figure. Over 5 years the correlation is 0.66, and the annualized covariance of weekly returns is 155.6 %².
Among the 70 assets we track against EWJ, VIG ranks #23 by 3-year correlation. Over the last 12 months EWJ came out ahead by 10.0 percentage points (+27.1% against +17.1%). The rolling one-year correlation stayed in a tight band between 0.53 and 0.77 over the past three years, which points to a structural rather than episodic relationship. Note the risk asymmetry: EWJ runs 1.6 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 VIG: side by side
| EWJ (iShares MSCI Japan ETF) | VIG (Vanguard Dividend Appreciation ETF) | |
|---|---|---|
| 1-year return | +27.1% | +17.1% |
| 5-year return | +58.6% | +64.0% |
| Volatility (ann.) | 19.6% | 11.9% |
| Beta vs S&P 500 | 0.94 | 0.74 |
| Max drawdown (3Y) | -14.7% | -15.0% |
| Dividend yield | 3.86% | 1.50% |
| Expense ratio | 0.49% | 0.04% |
| Assets under management | $21.8B | $130.9B |
| Sector / category | ETF · International | ETF · Dividend |
EWJ is a Japan Stock fund from iShares: $21.8B under management, 168 holdings, a 0.49% expense ratio, a 3.86% trailing dividend yield. VIG, Vanguard's Large Blend fund, carries $130.9B under management, 333 holdings, a 0.04% expense ratio, a 1.50% trailing dividend yield.
Portfolio overlap between EWJ and VIG
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 VIG: AVGO (4.65%), AAPL (4.47%), MSFT (4.35%), JPM (4.09%), LLY (3.94%).
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 | VIG |
|---|---|---|
| 2022 | -17.7% | -9.8% |
| 2023 | +20.3% | +14.5% |
| 2024 | +7.0% | +17.0% |
| 2025 | +25.8% | +14.2% |
| 2026 | +19.3% | +11.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EWJ and VIG good diversifiers for each other?
Only partially. A correlation of 0.67 means EWJ and VIG 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 VIG?
Using weekly returns as of 2026-08-27: 0.67 over 3 years, with 0.65 over the last year and 0.66 over 5 years.
Is VIG a good diversifier for EWJ?
Only partially. A correlation of 0.67 means EWJ and VIG share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
How much do EWJ and VIG 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-vig.json
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Related comparisons
Hubs: EWJ correlations · VIG correlations
