EWA vs. ^N225

Last updated Jun 3, 2026

EWA (iShares MSCI-Australia ETF) is Asia Pacific Equities fund tracking the MSCI Australia Index, while ^N225 (Nikkei 225) is an index. Over the past 10 years, EWA returned 8.53%/yr vs 10.33%/yr for ^N225. At a 0.13 correlation, their price movements are largely independent.

Performance

EWA vs. ^N225 - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares MSCI-Australia ETF (EWA) and Nikkei 225 (^N225). The values are adjusted to include any dividend payments, if applicable.

Different Trading Currencies

EWA is traded in USD, while ^N225 is traded in JPY. To make them comparable, the ^N225 values have been converted to USD using the latest available exchange rates.

Returns By Period

In the year-to-date period, EWA achieves a 12.52% return, which is significantly lower than ^N225's 29.72% return. Over the past 10 years, EWA has underperformed ^N225 with an annualized return of 8.53%, while ^N225 has yielded a comparatively higher 10.33% annualized return.

EWA

• 1D: 1.17%
• 1M: 0.68%
• YTD: 12.52%
• 6M: 15.59%
• 1Y: 16.38%
• 3Y*: 13.02%
• 5Y*: 6.09%
• 10Y*: 8.53%

^N225

• 1D: 0.00%
• 1M: 10.19%
• YTD: 29.72%
• 6M: 31.97%
• 1Y: 58.95%
• 3Y*: 22.83%
• 5Y*: 9.57%
• 10Y*: 10.33%

*Multi-year figures are annualized to reflect compound growth (CAGR)

EWA vs. ^N225 - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
EWA iShares MSCI-Australia ETF	12.52%	13.35%	1.60%	13.81%	-5.92%	8.93%	8.29%	22.45%	-12.04%	19.88%
^N225 Nikkei 225	29.72%	26.56%	7.17%	19.21%	-20.48%	-5.90%	22.42%	19.73%	-10.20%	23.76%

Correlation

The correlation between EWA and ^N225 is 0.13, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.13
Correlation (3Y) Calculated over the trailing 3-year period	0.18
Correlation (5Y) Calculated over the trailing 5-year period	0.21
Correlation (10Y) Calculated over the trailing 10-year period	0.19
Correlation (All Time) Calculated using the full available price history since Jun 29, 2007	0.13

Return for Risk

EWA vs. ^N225 — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

EWA

EWA Risk / Return Rank: 30
EWA Sharpe Ratio Rank: 27
EWA Sortino Ratio Rank: 26
EWA Omega Ratio Rank: 26
EWA Calmar Ratio Rank: 36
EWA Martin Ratio Rank: 33

^N225

^N225 Risk / Return Rank: 97
^N225 Sharpe Ratio Rank: 96
^N225 Sortino Ratio Rank: 97
^N225 Omega Ratio Rank: 96
^N225 Calmar Ratio Rank: 97
^N225 Martin Ratio Rank: 98

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

EWA vs. ^N225 - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI-Australia ETF (EWA) and Nikkei 225 (^N225). 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.

	EWA	^N225	Difference
Sharpe ratio Return per unit of total volatility	0.98	2.51	-1.53
Sortino ratio Return per unit of downside risk	1.43	3.51	-2.07
Omega ratio Gain probability vs. loss probability	1.18	1.41	-0.24
Calmar ratio Return relative to maximum drawdown	1.79	4.24	-2.45
Martin ratio Return relative to average drawdown	5.15	14.00	-8.85
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

EWA vs. ^N225 - Sharpe Ratio Comparison

The current EWA Sharpe Ratio is 0.98, which is lower than the ^N225 Sharpe Ratio of 2.51. The chart below compares the historical Sharpe Ratios of EWA and ^N225, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	EWA	^N225	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.98	2.51	-1.53
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.31	0.42	-0.11
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.38	0.50	-0.12
Sharpe Ratio (All Time) Calculated using the full available price history	0.29	0.25	+0.04

Drawdowns

EWA vs. ^N225 - Drawdown Comparison

The maximum EWA drawdown since its inception was -66.98%, which is greater than ^N225's maximum drawdown of -52.37%. Use the drawdown chart below to compare losses from any high point for EWA and ^N225.

Drawdown Indicators

	EWA	^N225	Difference
Max Drawdown Largest peak-to-trough decline	-66.98%	-52.37%	-14.61%
Max Drawdown (1Y) Largest decline over 1 year	-10.01%	-14.75%	+4.74%
Max Drawdown (3Y) Largest decline over 3 years	-21.91%	-24.78%	+2.87%
Max Drawdown (5Y) Largest decline over 5 years	-24.87%	-36.26%	+11.39%
Max Drawdown (10Y) Largest decline over 10 years	-45.54%	-37.97%	-7.57%
Current Drawdown Current decline from peak	-2.61%	-0.44%	-2.17%
Average Drawdown Average peak-to-trough decline	-11.33%	-13.63%	+2.30%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.48%	4.47%	-0.99%

Volatility

EWA vs. ^N225 - Volatility Comparison

The current volatility for iShares MSCI-Australia ETF (EWA) is 5.51%, while Nikkei 225 (^N225) has a volatility of 8.49%. This indicates that EWA experiences smaller price fluctuations and is considered to be less risky than ^N225 based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	EWA	^N225	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.51%	8.49%	-2.98%
Volatility (6M) Calculated over the trailing 6-month period	13.94%	20.14%	-6.20%
Volatility (1Y) Calculated over the trailing 1-year period	16.87%	25.13%	-8.26%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.72%	23.65%	-3.93%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.61%	21.50%	+1.11%

Frequently Asked Questions

Can I hold both EWA and ^N225 in my portfolio?

EWA and ^N225 have a correlation of 0.13, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, EWA or ^N225?

^N225 has higher volatility (8.49%) compared to EWA (5.51%). In terms of maximum drawdown, EWA dropped -66.98% vs ^N225's -52.37%.

Which has better risk-adjusted returns?

^N225 currently has the higher Sharpe Ratio (2.51 vs 0.98), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.