EWJ vs VT: Correlation & Overlap
Measured on weekly returns over the past three years, iShares MSCI Japan ETF (EWJ) and Vanguard Total World Stock ETF (VT) carry a correlation of 0.80, a very strong link. By holdings, the two funds overlap 4.7% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are EWJ and VT?
On 3 years of weekly data the EWJ/VT correlation comes out at 0.80, very strong, meaning they move nearly in lockstep. The relationship has been stable: the 1-year correlation (0.80) sits close to the 3-year figure. The 5-year figure is 0.80, and annualized covariance runs at 218.8 %².
By 3-year correlation, VT places #6 of the 70 assets tracked against EWJ. Twelve-month performance is nearly a tie, at +27.1% for EWJ and +22.7% for VT. Stability stands out here, with the rolling one-year correlation confined to 0.73 through 0.85.
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 VT: side by side
| EWJ (iShares MSCI Japan ETF) | VT (Vanguard Total World Stock ETF) | |
|---|---|---|
| 1-year return | +27.1% | +22.7% |
| 5-year return | +58.6% | +67.7% |
| Volatility (ann.) | 19.6% | 13.9% |
| Beta vs S&P 500 | 0.94 | 0.92 |
| Max drawdown (3Y) | -14.7% | -16.5% |
| Dividend yield | 3.86% | 1.59% |
| Expense ratio | 0.49% | 0.06% |
| Assets under management | $21.8B | $97.9B |
| Sector / category | ETF · International | ETF · Global |
EWJ, iShares's Japan Stock fund, carries $21.8B under management, 168 holdings, a 0.49% expense ratio, a 3.86% trailing dividend yield. VT is a Global Large-Stock Blend fund from Vanguard: $97.9B under management, 5308 holdings, a 0.06% expense ratio, a 1.59% trailing dividend yield.
Portfolio overlap between EWJ and VT
The two portfolios are largely distinct, with 168 holdings in common adding up to 4.7% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
| Common holding | Weight in EWJ | Weight in VT |
|---|---|---|
| 8306 | 4.56% | 0.22% |
| 7203 | 3.47% | 0.18% |
| 8316 | 2.92% | 0.14% |
| 8035 | 2.97% | 0.13% |
| 6501 | 2.80% | 0.13% |
| 6857 | 3.12% | 0.13% |
| 6758 | 2.70% | 0.12% |
| 8411 | 2.35% | 0.11% |
| 9984 | 2.29% | 0.11% |
| 6098 | 2.71% | 0.10% |
| 6861 | 1.83% | 0.09% |
| 8058 | 1.70% | 0.09% |
| 8766 | 1.63% | 0.09% |
| 285A | 1.87% | 0.08% |
| 9983 | 1.64% | 0.08% |
Largest positions held only by EWJ: . Only by VT: NVDA (4.20%), AAPL (4.00%), MSFT (3.09%), AMZN (2.36%), GOOGL (1.89%).
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 | VT |
|---|---|---|
| 2022 | -17.7% | -18.0% |
| 2023 | +20.3% | +22.0% |
| 2024 | +7.0% | +16.5% |
| 2025 | +25.8% | +22.4% |
| 2026 | +19.3% | +15.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EWJ and VT good diversifiers for each other?
Not really. At 0.80, the two trade almost as one position, and owning both buys little extra protection.
FAQ
What is the correlation between EWJ and VT?
Using weekly returns as of 2026-08-27: 0.80 over 3 years, with 0.80 over the last year and 0.80 over 5 years.
Is VT a good diversifier for EWJ?
Not really. At 0.80, the two trade almost as one position, and owning both buys little extra protection.
How much do EWJ and VT overlap?
The two funds share 168 holdings amounting to 4.7% of weight, per issuer portfolio files dated 2026-08-26.
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Related comparisons
Hubs: EWJ correlations · VT correlations
