EWJ vs VUG: Correlation & Overlap
How closely do iShares MSCI Japan ETF (EWJ) and Vanguard Growth ETF (VUG) trade together? Their weekly returns over three years give a correlation of 0.61, 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 VUG?
Over the past 3 years, EWJ and VUG moved with a correlation of 0.61, which is strong. Lately the two have drifted apart, with the 1-year correlation at 0.50 versus 0.61 over 3 years. Over 5 years the correlation is 0.65, and the annualized covariance of weekly returns is 231.5 %².
Within EWJ's tracked universe of 70 assets, VUG comes in at #38 by 3-year correlation. The trailing year gives EWJ the advantage: +27.1% versus +16.2%, a 10.9-point spread. On a rolling one-year basis the correlation drifted between 0.43 and 0.72, 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 VUG: side by side
| EWJ (iShares MSCI Japan ETF) | VUG (Vanguard Growth ETF) | |
|---|---|---|
| 1-year return | +27.1% | +16.2% |
| 5-year return | +58.6% | +78.4% |
| Volatility (ann.) | 19.6% | 19.4% |
| Beta vs S&P 500 | 0.94 | 1.28 |
| Max drawdown (3Y) | -14.7% | -22.8% |
| Dividend yield | 3.86% | 0.40% |
| Expense ratio | 0.49% | 0.03% |
| Assets under management | $21.8B | $372.0B |
| Sector / category | ETF · International | ETF · US Style |
EWJ, iShares's Japan Stock fund, carries $21.8B under management, 168 holdings, a 0.49% expense ratio, a 3.86% trailing dividend yield. VUG, Vanguard's Large Growth fund, carries $372.0B under management, 146 holdings, a 0.03% expense ratio, a 0.40% trailing dividend yield.
Portfolio overlap between EWJ and VUG
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 VUG: NVDA (12.84%), AAPL (12.63%), MSFT (9.61%), GOOGL (5.81%), AMZN (5.16%).
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 | VUG |
|---|---|---|
| 2022 | -17.7% | -33.2% |
| 2023 | +20.3% | +46.8% |
| 2024 | +7.0% | +32.7% |
| 2025 | +25.8% | +19.4% |
| 2026 | +19.3% | +9.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EWJ and VUG good diversifiers for each other?
To a limited degree. At 0.61 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between EWJ and VUG?
The EWJ/VUG correlation stands at 0.61 on a 3-year window (1 year: 0.50, 5 years: 0.65), computed from weekly returns as of 2026-08-27.
Is VUG a good diversifier for EWJ?
To a limited degree. At 0.61 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
How much do EWJ and VUG overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 0% by weight over 0 common positions.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/ewj-vs-vug.json
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[](https://www.pairbook.io/pair/ewj-vs-vug/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: EWJ correlations · VUG correlations
