EWJ vs VYM: Correlation & Overlap
Measured on weekly returns over the past three years, iShares MSCI Japan ETF (EWJ) and Vanguard High Dividend Yield ETF (VYM) carry a correlation of 0.66, a strong link. Looking through to holdings, 0% of the two portfolios is the same by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are EWJ and VYM?
Across a 3-year window, the weekly returns of EWJ and VYM correlate at 0.66, strong. Recent behaviour matches the longer record: 0.67 over 1 year against 0.66 over 3. Stretching to 5 years gives 0.64, with an annualized covariance of 160.2 %².
Within EWJ's tracked universe of 70 assets, VYM comes in at #28 by 3-year correlation. On 12-month performance EWJ holds a 6.0-point edge, +27.1% against +21.1%. The link looks structural: the rolling one-year correlation barely moved, holding between 0.54 and 0.78. Risk is not evenly split, since EWJ carries 1.6 times the volatility of the other side.
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 VYM: side by side
| EWJ (iShares MSCI Japan ETF) | VYM (Vanguard High Dividend Yield ETF) | |
|---|---|---|
| 1-year return | +27.1% | +21.1% |
| 5-year return | +58.6% | +76.6% |
| Volatility (ann.) | 19.6% | 12.3% |
| Beta vs S&P 500 | 0.94 | 0.69 |
| Max drawdown (3Y) | -14.7% | -14.5% |
| Dividend yield | 3.86% | 2.24% |
| Expense ratio | 0.49% | 0.04% |
| Assets under management | $21.8B | $99.2B |
| Sector / category | ETF · International | ETF · Dividend |
EWJ, iShares's Japan Stock fund, carries $21.8B under management, 168 holdings, a 0.49% expense ratio, a 3.86% trailing dividend yield. VYM, Vanguard's Large Value fund, carries $99.2B under management, 604 holdings, a 0.04% expense ratio, a 2.24% trailing dividend yield.
Portfolio overlap between EWJ and VYM
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 VYM: AVGO (7.37%), JPM (3.83%), XOM (2.63%), JNJ (2.51%), CSCO (1.87%).
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 | VYM |
|---|---|---|
| 2022 | -17.7% | -0.4% |
| 2023 | +20.3% | +6.6% |
| 2024 | +7.0% | +17.6% |
| 2025 | +25.8% | +15.4% |
| 2026 | +19.3% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EWJ and VYM good diversifiers for each other?
To a limited degree. At 0.66 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 VYM?
Using weekly returns as of 2026-08-27: 0.66 over 3 years, with 0.67 over the last year and 0.64 over 5 years.
Is VYM a good diversifier for EWJ?
To a limited degree. At 0.66 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 VYM 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-vym.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/ewj-vs-vym/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: EWJ correlations · VYM correlations
