EWJ vs XLU: Correlation & Overlap
Measured on weekly returns over the past three years, iShares MSCI Japan ETF (EWJ) and Utilities Select Sector SPDR Fund (XLU) carry a correlation of 0.30, a moderate 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 XLU?
Across a 3-year window, the weekly returns of EWJ and XLU correlate at 0.30, moderate. The link has loosened recently: the 1-year correlation (0.19) runs below the 3-year figure (0.30). Stretching to 5 years gives 0.32, with an annualized covariance of 94.0 %².
By 3-year correlation, XLU places #59 of the 70 assets tracked against EWJ. The last year tells two different stories: EWJ led by 23.0 percentage points, +27.1% for EWJ against +4.1% for XLU. The rolling one-year correlation moved between 0.10 and 0.51 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 XLU: side by side
| EWJ (iShares MSCI Japan ETF) | XLU (Utilities Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +27.1% | +4.1% |
| 5-year return | +58.6% | +46.3% |
| Volatility (ann.) | 19.6% | 15.8% |
| Beta vs S&P 500 | 0.94 | 0.26 |
| Max drawdown (3Y) | -14.7% | -13.1% |
| Dividend yield | 3.86% | 2.70% |
| Expense ratio | 0.49% | 0.08% |
| Assets under management | $21.8B | $23.1B |
| Sector / category | ETF · International | Sector ETF |
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. XLU is an Utilities fund from State Street Investment Management: $23.1B under management, 31 holdings, a 0.08% expense ratio, a 2.70% trailing dividend yield.
Portfolio overlap between EWJ and XLU
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 XLU: NEE (12.94%), SO (7.45%), DUK (7.00%), CEG (6.58%), AEP (4.94%).
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 | XLU |
|---|---|---|
| 2022 | -17.7% | +1.4% |
| 2023 | +20.3% | -7.2% |
| 2024 | +7.0% | +23.3% |
| 2025 | +25.8% | +16.0% |
| 2026 | +19.3% | +2.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EWJ and XLU good diversifiers for each other?
A fair diversifier. At 0.30, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between EWJ and XLU?
As of 2026-08-27, the correlation of weekly returns between EWJ and XLU is 0.30 over 3 years, 0.19 over 1 year and 0.32 over 5 years.
Is XLU a good diversifier for EWJ?
A fair diversifier. At 0.30, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
How much do EWJ and XLU 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-xlu.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/ewj-vs-xlu/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: EWJ correlations · XLU correlations
