EWJ vs XLV: Correlation & Overlap
How closely do iShares MSCI Japan ETF (EWJ) and Health Care Select Sector SPDR Fund (XLV) trade together? Their weekly returns over three years give a correlation of 0.38, which is moderate. 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 XLV?
Over the past 3 years, EWJ and XLV moved with a correlation of 0.38, which is moderate. Lately the two have drifted apart, with the 1-year correlation at 0.13 versus 0.38 over 3 years. Over 5 years the correlation is 0.43, and the annualized covariance of weekly returns is 110.6 %².
Within EWJ's tracked universe of 70 assets, XLV comes in at #53 by 3-year correlation. Their 12-month results are close: +27.1% for EWJ against +27.5% for XLV. On a rolling one-year basis the correlation drifted between 0.21 and 0.63, a moderate band.
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 XLV: side by side
| EWJ (iShares MSCI Japan ETF) | XLV (Health Care Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +27.1% | +27.5% |
| 5-year return | +58.6% | +37.4% |
| Volatility (ann.) | 19.6% | 14.7% |
| Beta vs S&P 500 | 0.94 | 0.42 |
| Max drawdown (3Y) | -14.7% | -17.1% |
| Dividend yield | 3.86% | 1.56% |
| Expense ratio | 0.49% | 0.08% |
| Assets under management | $21.8B | $41.7B |
| 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. On the fund side, XLV sits in the Health category at State Street Investment Management, with $41.7B under management, 61 holdings, a 0.08% expense ratio, a 1.56% trailing dividend yield.
Portfolio overlap between EWJ and XLV
The two portfolios are largely distinct. Weighing the shared positions, 0% of the two funds is identical, spread across 0 common holdings. That shared book is a large part of why the returns line up.
Largest positions held only by EWJ: 8306 (4.56%), 7203 (3.47%), 6857 (3.12%), 8035 (2.97%), 8316 (2.92%). Only by XLV: LLY (15.03%), JNJ (10.38%), ABBV (7.42%), MRK (6.04%), UNH (5.82%).
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 | XLV |
|---|---|---|
| 2022 | -17.7% | -2.1% |
| 2023 | +20.3% | +2.1% |
| 2024 | +7.0% | +2.5% |
| 2025 | +25.8% | +14.5% |
| 2026 | +19.3% | +11.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EWJ and XLV good diversifiers for each other?
A fair diversifier. At 0.38, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between EWJ and XLV?
The EWJ/XLV correlation stands at 0.38 on a 3-year window (1 year: 0.13, 5 years: 0.43), computed from weekly returns as of 2026-08-27.
Is XLV a good diversifier for EWJ?
A fair diversifier. At 0.38, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
How much do EWJ and XLV 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-xlv.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/ewj-vs-xlv/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: EWJ correlations · XLV correlations
