EWJ vs XLI: Correlation & Overlap
Measured on weekly returns over the past three years, iShares MSCI Japan ETF (EWJ) and Industrial Select Sector SPDR Fund (XLI) 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 XLI?
On 3 years of weekly data the EWJ/XLI correlation comes out at 0.66, strong. Little has changed lately, as the 1-year reading of 0.70 lands near the 3-year figure. The 5-year figure is 0.67, and annualized covariance runs at 204.9 %².
Among the 70 assets we track against EWJ, XLI ranks #29 by 3-year correlation. Over the last 12 months EWJ came out ahead by 8.8 percentage points (+27.1% against +18.3%). Stability stands out here, with the rolling one-year correlation confined to 0.53 through 0.74.
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 XLI: side by side
| EWJ (iShares MSCI Japan ETF) | XLI (Industrial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +27.1% | +18.3% |
| 5-year return | +58.6% | +84.0% |
| Volatility (ann.) | 19.6% | 15.7% |
| Beta vs S&P 500 | 0.94 | 0.89 |
| Max drawdown (3Y) | -14.7% | -18.5% |
| Dividend yield | 3.86% | 1.15% |
| Expense ratio | 0.49% | 0.08% |
| Assets under management | $21.8B | $32.9B |
| Sector / category | ETF · International | Sector ETF |
EWJ is a Japan Stock fund from iShares: $21.8B under management, 168 holdings, a 0.49% expense ratio, a 3.86% trailing dividend yield. XLI is an Industrials fund from State Street Investment Management: $32.9B under management, 83 holdings, a 0.08% expense ratio, a 1.15% trailing dividend yield.
Portfolio overlap between EWJ and XLI
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 XLI: CAT (6.68%), GE (6.52%), RTX (5.04%), GEV (4.52%), UNP (3.25%).
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 | XLI |
|---|---|---|
| 2022 | -17.7% | -5.6% |
| 2023 | +20.3% | +18.1% |
| 2024 | +7.0% | +17.3% |
| 2025 | +25.8% | +19.3% |
| 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 XLI good diversifiers for each other?
Only partially. A correlation of 0.66 means EWJ and XLI share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between EWJ and XLI?
The EWJ/XLI correlation stands at 0.66 on a 3-year window (1 year: 0.70, 5 years: 0.67), computed from weekly returns as of 2026-08-27.
Is XLI a good diversifier for EWJ?
Only partially. A correlation of 0.66 means EWJ and XLI share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
How much do EWJ and XLI 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-xli.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/ewj-vs-xli/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: EWJ correlations · XLI correlations
