EWJ vs XLB: Correlation & Overlap
iShares MSCI Japan ETF (EWJ) and Materials Select Sector SPDR Fund (XLB) show a strong relationship: their 3-year correlation of weekly returns is 0.60. 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 XLB?
Across a 3-year window, the weekly returns of EWJ and XLB correlate at 0.60, strong. Little has changed lately, as the 1-year reading of 0.60 lands near the 3-year figure. Stretching to 5 years gives 0.65, with an annualized covariance of 196.0 %².
Among the 70 assets we track against EWJ, XLB ranks #40 by 3-year correlation. On 12-month performance EWJ holds a 9.5-point edge, +27.1% against +17.6%. Across three years, the rolling one-year figure varied moderately, from 0.45 to 0.79.
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 XLB: side by side
| EWJ (iShares MSCI Japan ETF) | XLB (Materials Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +27.1% | +17.6% |
| 5-year return | +58.6% | +36.9% |
| Volatility (ann.) | 19.6% | 16.7% |
| Beta vs S&P 500 | 0.94 | 0.72 |
| Max drawdown (3Y) | -14.7% | -23.2% |
| Dividend yield | 3.86% | 1.68% |
| Expense ratio | 0.49% | 0.08% |
| Assets under management | $21.8B | $8.3B |
| Sector / category | ETF · International | Sector ETF |
EWJ, iShares's Japan Stock fund, carries $21.8B under management, 168 holdings, a 0.49% expense ratio, a 3.86% trailing dividend yield. XLB is a Natural Resources fund from State Street Investment Management: $8.3B under management, 26 holdings, a 0.08% expense ratio, a 1.68% trailing dividend yield.
Portfolio overlap between EWJ and XLB
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 XLB: LIN (12.94%), NEM (8.02%), FCX (6.48%), SHW (4.87%), ECL (4.80%).
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 | XLB |
|---|---|---|
| 2022 | -17.7% | -12.3% |
| 2023 | +20.3% | +12.5% |
| 2024 | +7.0% | +0.1% |
| 2025 | +25.8% | +9.9% |
| 2026 | +19.3% | +18.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EWJ and XLB good diversifiers for each other?
To a limited degree. At 0.60 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 XLB?
The EWJ/XLB correlation stands at 0.60 on a 3-year window (1 year: 0.60, 5 years: 0.65), computed from weekly returns as of 2026-08-27.
Is XLB a good diversifier for EWJ?
To a limited degree. At 0.60 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 XLB overlap?
0% by weight, across 0 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-xlb.json
Embed this badge (it refreshes with the data), with attribution:
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Related comparisons
Hubs: EWJ correlations · XLB correlations
