EWJ vs XLC: Correlation & Overlap
iShares MSCI Japan ETF (EWJ) and Communication Services Select Sector SPDR Fund (XLC) show a moderate relationship: their 3-year correlation of weekly returns is 0.55. 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 XLC?
Across a 3-year window, the weekly returns of EWJ and XLC correlate at 0.55, moderate. The past 12 months show a weaker link (0.36) than the 3-year average (0.55). Stretching to 5 years gives 0.58, with an annualized covariance of 173.1 %².
Within EWJ's tracked universe of 70 assets, XLC comes in at #43 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months EWJ outperformed by 25.6 percentage points (+27.1% for EWJ against +1.5% for XLC). The rolling one-year correlation moved between 0.36 and 0.75 over the past three years, a moderate range.
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 XLC: side by side
| EWJ (iShares MSCI Japan ETF) | XLC (Communication Services Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +27.1% | +1.5% |
| 5-year return | +58.6% | +37.5% |
| Volatility (ann.) | 19.6% | 16.0% |
| Beta vs S&P 500 | 0.94 | 0.90 |
| Max drawdown (3Y) | -14.7% | -18.0% |
| Dividend yield | 3.86% | 1.32% |
| Expense ratio | 0.49% | 0.08% |
| Assets under management | $21.8B | $21.7B |
| 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. On the fund side, XLC sits in the Communications category at State Street Investment Management, with $21.7B under management, 24 holdings, a 0.08% expense ratio, a 1.32% trailing dividend yield.
Portfolio overlap between EWJ and XLC
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 XLC: META (16.73%), GOOGL (10.29%), GOOG (8.22%), T (5.20%), VZ (4.99%).
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 | XLC |
|---|---|---|
| 2022 | -17.7% | -37.6% |
| 2023 | +20.3% | +52.8% |
| 2024 | +7.0% | +34.7% |
| 2025 | +25.8% | +23.1% |
| 2026 | +19.3% | -4.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EWJ and XLC good diversifiers for each other?
Somewhat, no more. With 0.55 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between EWJ and XLC?
Using weekly returns as of 2026-08-27: 0.55 over 3 years, with 0.36 over the last year and 0.58 over 5 years.
Is XLC a good diversifier for EWJ?
Somewhat, no more. With 0.55 correlation, most large moves hit both names, and the diversification benefit stays modest.
How much do EWJ and XLC 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-xlc.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/ewj-vs-xlc/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: EWJ correlations · XLC correlations
