^N225 vs. EWJ
Compare and contrast key facts about Nikkei 225 (^N225) and iShares MSCI Japan ETF (EWJ).
EWJ is a passively managed fund by iShares that tracks the performance of the MSCI Japan Index. It was launched on Mar 12, 1996.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: ^N225 or EWJ.
Key characteristics
| ^N225 | EWJ | |
|---|---|---|
| YTD Return | 9.32% | 9.74% |
| 1Y Return | 10.29% | 12.68% |
| 3Y Return (Ann) | 6.16% | 0.13% |
| 5Y Return (Ann) | 11.00% | 5.98% |
| 10Y Return (Ann) | 8.83% | 5.67% |
| Sharpe Ratio | 0.42 | 0.85 |
| Daily Std Dev | 25.71% | 17.19% |
| Max Drawdown | -81.87% | -58.89% |
| Current Drawdown | -13.36% | -2.92% |
Correlation
The correlation between ^N225 and EWJ is 0.41, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.
Performance
^N225 vs. EWJ - Performance Comparison
The year-to-date returns for both investments are quite close, with ^N225 having a 9.32% return and EWJ slightly higher at 9.74%. Over the past 10 years, ^N225 has outperformed EWJ with an annualized return of 8.83%, while EWJ has yielded a comparatively lower 5.67% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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Risk-Adjusted Performance
^N225 vs. EWJ - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Nikkei 225 (^N225) and iShares MSCI Japan ETF (EWJ). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Drawdowns
^N225 vs. EWJ - Drawdown Comparison
The maximum ^N225 drawdown since its inception was -81.87%, which is greater than EWJ's maximum drawdown of -58.89%. Use the drawdown chart below to compare losses from any high point for ^N225 and EWJ. For additional features, visit the drawdowns tool.
Volatility
^N225 vs. EWJ - Volatility Comparison
Nikkei 225 (^N225) has a higher volatility of 9.50% compared to iShares MSCI Japan ETF (EWJ) at 5.99%. This indicates that ^N225's price experiences larger fluctuations and is considered to be riskier than EWJ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.