EWJ vs VWO: Correlation & Overlap
How closely do iShares MSCI Japan ETF (EWJ) and Vanguard FTSE Emerging Markets ETF (VWO) trade together? Their weekly returns over three years give a correlation of 0.71, which is strong. The two funds also share 0.4% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are EWJ and VWO?
Over the past 3 years, EWJ and VWO moved with a correlation of 0.71, which is strong. The relationship has been stable: the 1-year correlation (0.79) sits close to the 3-year figure. Over 5 years the correlation is 0.70, and the annualized covariance of weekly returns is 210.4 %².
By 3-year correlation, VWO places #15 of the 70 assets tracked against EWJ. The trailing year gives EWJ the advantage: +27.1% versus +21.6%, a 5.5-point spread. On a rolling one-year basis the correlation drifted between 0.48 and 0.81, 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 VWO: side by side
| EWJ (iShares MSCI Japan ETF) | VWO (Vanguard FTSE Emerging Markets ETF) | |
|---|---|---|
| 1-year return | +27.1% | +21.6% |
| 5-year return | +58.6% | +38.2% |
| Volatility (ann.) | 19.6% | 15.2% |
| Beta vs S&P 500 | 0.94 | 0.75 |
| Max drawdown (3Y) | -14.7% | -17.4% |
| Dividend yield | 3.86% | 2.36% |
| Expense ratio | 0.49% | 0.06% |
| Assets under management | $21.8B | $162.0B |
| Sector / category | ETF · International | ETF · International |
On the fund side, EWJ sits in the Japan Stock category at iShares, with $21.8B under management, 168 holdings, a 0.49% expense ratio, a 3.86% trailing dividend yield. On the fund side, VWO sits in the Diversified Emerging Mkts category at Vanguard, with $162.0B under management, 4113 holdings, a 0.06% expense ratio, a 2.36% trailing dividend yield.
Portfolio overlap between EWJ and VWO
The two portfolios are largely distinct, with 11 holdings in common adding up to 0.4% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
| Common holding | Weight in EWJ | Weight in VWO |
|---|---|---|
| 1801 | 0.22% | 0.19% |
| 2801 | 0.15% | 0.06% |
| 7203 | 3.47% | 0.05% |
| 1605 | 0.40% | 0.03% |
| 6098 | 2.71% | 0.02% |
| 4004 | 0.34% | 0.01% |
| 7202 | 0.14% | 0.01% |
| 1802 | 0.22% | 0.01% |
| 6146 | 0.63% | 0.00% |
| 6178 | 0.48% | 0.00% |
| 2587 | 0.07% | 0.00% |
Largest positions held only by EWJ: 8306 (4.56%), 6857 (3.12%), 8035 (2.97%), 8316 (2.92%), 6501 (2.80%). Only by VWO: 2330 (18.65%), 700 (3.97%), 9988 (2.90%), 2454 (1.62%), 939 (1.07%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 11 common positions shown.
Year-by-year returns
| Year | EWJ | VWO |
|---|---|---|
| 2022 | -17.7% | -18.0% |
| 2023 | +20.3% | +9.3% |
| 2024 | +7.0% | +10.6% |
| 2025 | +25.8% | +25.6% |
| 2026 | +19.3% | +13.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EWJ and VWO good diversifiers for each other?
Somewhat, no more. With 0.71 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between EWJ and VWO?
Using weekly returns as of 2026-08-27: 0.71 over 3 years, with 0.79 over the last year and 0.70 over 5 years.
Is VWO a good diversifier for EWJ?
Somewhat, no more. With 0.71 correlation, most large moves hit both names, and the diversification benefit stays modest.
How much do EWJ and VWO overlap?
0.4% by weight, across 11 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-vwo.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/ewj-vs-vwo/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: EWJ correlations · VWO correlations
