EWJ vs VNQ: Correlation & Overlap
Measured on weekly returns over the past three years, iShares MSCI Japan ETF (EWJ) and Vanguard Real Estate ETF (VNQ) carry a correlation of 0.44, a moderate link. The two funds also share 0% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are EWJ and VNQ?
On 3 years of weekly data the EWJ/VNQ correlation comes out at 0.44, moderate. The link has loosened recently: the 1-year correlation (0.33) runs below the 3-year figure (0.44). The 5-year figure is 0.51, and annualized covariance runs at 143.2 %².
Among the 70 assets we track against EWJ, VNQ ranks #50 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months EWJ outperformed by 16.8 percentage points (+27.1% for EWJ against +10.3% for VNQ). On a rolling one-year basis the correlation drifted between 0.32 and 0.77, a moderate band.
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 VNQ: side by side
| EWJ (iShares MSCI Japan ETF) | VNQ (Vanguard Real Estate ETF) | |
|---|---|---|
| 1-year return | +27.1% | +10.3% |
| 5-year return | +58.6% | +9.5% |
| Volatility (ann.) | 19.6% | 16.6% |
| Beta vs S&P 500 | 0.94 | 0.59 |
| Max drawdown (3Y) | -14.7% | -17.5% |
| Dividend yield | 3.86% | 3.51% |
| Expense ratio | 0.49% | 0.13% |
| Assets under management | $21.8B | $73.1B |
| Sector / category | ETF · International | ETF · Real Estate |
EWJ, iShares's Japan Stock fund, carries $21.8B under management, 168 holdings, a 0.49% expense ratio, a 3.86% trailing dividend yield. VNQ is a Real Estate fund from Vanguard: $73.1B under management, 140 holdings, a 0.13% expense ratio, a 3.51% trailing dividend yield.
Portfolio overlap between EWJ and VNQ
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 VNQ: VRTPX (14.54%), WELL (8.54%), PLD (7.04%), EQIX (5.25%), AMT (4.22%).
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 | VNQ |
|---|---|---|
| 2022 | -17.7% | -26.3% |
| 2023 | +20.3% | +11.9% |
| 2024 | +7.0% | +4.8% |
| 2025 | +25.8% | +3.2% |
| 2026 | +19.3% | +12.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EWJ and VNQ good diversifiers for each other?
Reasonably. At 0.44, EWJ and VNQ keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between EWJ and VNQ?
As of 2026-08-27, the correlation of weekly returns between EWJ and VNQ is 0.44 over 3 years, 0.33 over 1 year and 0.51 over 5 years.
Is VNQ a good diversifier for EWJ?
Reasonably. At 0.44, EWJ and VNQ keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
How much do EWJ and VNQ overlap?
The two funds share 0 holdings amounting to 0% of weight, per issuer portfolio files dated 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/ewj-vs-vnq.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/ewj-vs-vnq/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: EWJ correlations · VNQ correlations
