EWJ vs. ^N225
EWJ (iShares MSCI Japan ETF) is Japan Equities fund tracking the MSCI Japan Index, while ^N225 (Nikkei 225) is an index. Over the past 10 years, EWJ returned 8.96%/yr vs 9.08%/yr for ^N225. Their 0.32 correlation means their historical movements had little consistent relationship.
Performance
EWJ vs. ^N225 - Performance Comparison
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Different Trading Currencies
EWJ 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, EWJ achieves a 15.05% return, which is significantly lower than ^N225's 20.44% return. Both investments have delivered pretty close results over the past 10 years, with EWJ having a 8.96% annualized return and ^N225 not far ahead at 9.08%.
EWJ
- 1D
- -0.96%
- 1M
- -0.81%
- 6M
- 8.37%
- YTD
- 15.05%
- 1Y
- 30.10%
- 3Y*
- 17.16%
- 5Y*
- 9.17%
- 10Y*
- 8.96%
- ALL TIME*
- 2.61%
^N225
- 1D
- 0.00%
- 1M
- -10.35%
- 6M
- 12.47%
- YTD
- 20.44%
- 1Y
- 40.01%
- 3Y*
- 18.24%
- 5Y*
- 9.27%
- 10Y*
- 9.08%
- ALL TIME*
- 5.57%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
^N225 Nikkei 225 | $61.65B | $64.15B | $69.97B |
| $420.68M | $453.45M | $519.58M |
EWJ vs. ^N225 - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
EWJ iShares MSCI Japan ETF | 15.05% | 25.84% | 7.03% | 20.29% | -17.72% | 1.16% | 15.40% | 19.34% | -14.10% | 24.27% |
^N225 Nikkei 225 | 20.44% | 26.56% | 7.17% | 19.21% | -20.48% | -5.90% | 22.42% | 19.73% | -10.20% | 23.76% |
Correlation
The correlation between EWJ and ^N225 is 0.37, which is low. Their historical price movements had little consistent relationship.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.37 |
Correlation (3Y) Balances recent behavior with more history. | 0.36 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.40 |
Correlation (10Y) Provides a long-term view across more market conditions. | 0.36 |
Correlation (All Time) Calculated using the full available price history since Sep 10, 2007 | 0.32 |
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Return for Risk
EWJ vs. ^N225 — Risk / Return Rank
EWJ
^N225
EWJ vs. ^N225 - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares MSCI Japan ETF (EWJ) 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.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| EWJ | ^N225 | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.07 | ||
| Sortino ratioReturn per unit of downside risk | -0.12 | ||
| Omega ratioGain probability vs. loss probability | 1.28 | 1.27 | +0.01 |
| Calmar ratioReturn relative to maximum drawdown | 2.28 | 2.74 | -0.46 |
| Martin ratioReturn relative to average drawdown | 7.33 | 8.27 | -0.94 |
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Drawdowns
EWJ vs. ^N225 - Drawdown Comparison
The maximum EWJ drawdown since its inception was -60.93%, which is greater than ^N225's maximum drawdown of -51.91%. Use the drawdown chart below to compare losses from any high point for EWJ and ^N225.
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Drawdown Indicators
| EWJ | ^N225 | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -60.93% | -51.91% | -9.02% |
Max Drawdown (1Y)Largest decline over 1 year | -13.59% | -16.07% | +2.48% |
Max Drawdown (3Y)Largest decline over 3 years | -14.68% | -24.78% | +10.10% |
Max Drawdown (5Y)Largest decline over 5 years | -33.14% | -36.26% | +3.12% |
Max Drawdown (10Y)Largest decline over 10 years | -33.14% | -37.97% | +4.83% |
Current DrawdownCurrent decline from peak | -4.72% | -13.47% | +8.75% |
Average DrawdownAverage peak-to-trough decline | -21.64% | -13.42% | -8.22% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 4.23% | 5.27% | -1.04% |
Volatility
EWJ vs. ^N225 - Volatility Comparison
The current volatility for iShares MSCI Japan ETF (EWJ) is 7.64%, while Nikkei 225 (^N225) has a volatility of 9.81%. This indicates that EWJ 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.
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Volatility by Period
| EWJ | ^N225 | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 7.64% | 9.81% | -2.17% |
Volatility (6M)Calculated over the trailing 6-month period | 17.70% | 23.83% | -6.13% |
Volatility (1Y)Calculated over the trailing 1-year period | 20.96% | 28.40% | -7.44% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 18.69% | 24.38% | -5.69% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 17.45% | 21.82% | -4.37% |
Frequently Asked Questions
EWJ and ^N225 have a correlation of 0.37, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
^N225 has higher volatility (9.81%) compared to EWJ (7.64%). In terms of maximum drawdown, EWJ dropped -60.93% vs ^N225's -51.91%.
^N225 currently has the higher Sharpe Ratio (1.55 vs 1.48), 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.
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