EWJ vs. EWG

Last updated Jun 16, 2026

EWJ (iShares MSCI Japan ETF) and EWG (iShares MSCI Germany ETF) are both exchange-traded funds - EWJ is a Japan Equities fund tracking the MSCI Japan Index, while EWG is a Europe Equities fund tracking the MSCI Germany Index. Both are passively managed. Over the past 10 years, EWJ returned 9.73%/yr vs 8.07%/yr for EWG. A 0.57 correlation means they provide meaningful diversification when combined. Both charge a 0.49% expense ratio.

Performance

EWJ vs. EWG - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares MSCI Japan ETF (EWJ) and iShares MSCI Germany ETF (EWG). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, EWJ achieves a 17.13% return, which is significantly higher than EWG's 0.42% return. Over the past 10 years, EWJ has outperformed EWG with an annualized return of 9.73%, while EWG has yielded a comparatively lower 8.07% annualized return.

EWJ

• 1D: 2.01%
• 1M: 3.84%
• YTD: 17.13%
• 6M: 15.60%
• 1Y: 34.38%
• 3Y*: 17.59%
• 5Y*: 8.93%
• 10Y*: 9.73%

EWG

• 1D: 0.87%
• 1M: 3.16%
• YTD: 0.42%
• 6M: 1.37%
• 1Y: 4.53%
• 3Y*: 15.42%
• 5Y*: 6.10%
• 10Y*: 8.07%

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

EWJ vs. EWG - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
EWJ iShares MSCI Japan ETF	17.13%	25.84%	7.03%	20.29%	-17.72%	1.16%	15.40%	19.34%	-14.10%	24.27%
EWG iShares MSCI Germany ETF	0.42%	35.79%	9.79%	23.35%	-22.27%	5.84%	10.09%	19.15%	-21.40%	27.42%

Correlation

The correlation between EWJ and EWG is 0.66, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.66
Correlation (3Y) Calculated over the trailing 3-year period	0.63
Correlation (5Y) Calculated over the trailing 5-year period	0.67
Correlation (10Y) Calculated over the trailing 10-year period	0.67
Correlation (All Time) Calculated using the full available price history since Apr 1, 1996	0.57

The correlation between EWJ and EWG has been stable across timeframes, ranging from 0.57 to 0.67 - a consistent structural relationship.

EWJ vs. EWG - Sectors Allocation Comparison

Sectors	EWJ	EWG
Industrials	24.5%	29.9%
Technology	21.7%	16.3%
Financial Services	17.0%	20.6%
Consumer Cyclical	11.9%	8.7%
Communication Services	8.9%	6.5%
Healthcare	5.6%	6.0%
Basic Materials	3.4%	5.5%
Consumer Defensive	3.3%	1.3%
Real Estate	1.9%	0.9%
Utilities	1.0%	4.3%
Energy	0.9%	-

Return for Risk

EWJ vs. EWG — Risk / Return Rank

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

EWJ

EWJ Risk / Return Rank: 56
EWJ Sharpe Ratio Rank: 56
EWJ Sortino Ratio Rank: 56
EWJ Omega Ratio Rank: 56
EWJ Calmar Ratio Rank: 56
EWJ Martin Ratio Rank: 54

EWG

EWG Risk / Return Rank: 13
EWG Sharpe Ratio Rank: 13
EWG Sortino Ratio Rank: 12
EWG Omega Ratio Rank: 12
EWG Calmar Ratio Rank: 13
EWG Martin Ratio Rank: 14

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.

EWJ vs. EWG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI Japan ETF (EWJ) and iShares MSCI Germany ETF (EWG). 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	EWG	Difference
Sharpe ratio: Return per unit of total volatility	1.70	0.26	+1.44
Sortino ratio: Return per unit of downside risk	2.43	0.48	+1.95
Omega ratio: Gain probability vs. loss probability	1.31	1.06	+0.26
Calmar ratio: Return relative to maximum drawdown	2.54	0.31	+2.23
Martin ratio: Return relative to average drawdown	8.55	0.91	+7.63

EWJ vs. EWG - Sharpe Ratio Comparison

The current EWJ Sharpe Ratio is 1.70, which is higher than the EWG Sharpe Ratio of 0.26. The chart below compares the historical Sharpe Ratios of EWJ and EWG, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

EWJ vs. EWG - Drawdown Comparison

The maximum EWJ drawdown since its inception was -60.93%, smaller than the maximum EWG drawdown of -67.57%. Use the drawdown chart below to compare losses from any high point for EWJ and EWG.

Drawdown Indicators

	EWJ	EWG	Difference
Max Drawdown Largest peak-to-trough decline	-60.93%	-67.57%	+6.64%
Max Drawdown (1Y) Largest decline over 1 year	-13.59%	-14.54%	+0.95%
Max Drawdown (3Y) Largest decline over 3 years	-14.68%	-15.81%	+1.13%
Max Drawdown (5Y) Largest decline over 5 years	-33.14%	-42.59%	+9.45%
Max Drawdown (10Y) Largest decline over 10 years	-33.14%	-46.80%	+13.66%
Current Drawdown Current decline from peak	0.00%	-4.22%	+4.22%
Average Drawdown Average peak-to-trough decline	-21.72%	-19.18%	-2.54%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.03%	4.96%	-0.93%

Volatility

EWJ vs. EWG - Volatility Comparison

iShares MSCI Japan ETF (EWJ) and iShares MSCI Germany ETF (EWG) have volatilities of 6.50% and 6.27%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	EWJ	EWG	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.50%	6.27%	+0.23%
Volatility (6M) Calculated over the trailing 6-month period	16.07%	14.59%	+1.48%
Volatility (1Y) Calculated over the trailing 1-year period	20.32%	17.63%	+2.69%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.41%	20.55%	-2.14%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.35%	21.10%	-3.75%

EWJ vs. EWG - Expense Ratio Comparison

Both EWJ and EWG have an expense ratio of 0.49%.

Dividends

EWJ vs. EWG - Dividend Comparison

EWJ's dividend yield for the trailing twelve months is around 4.42%, more than EWG's 3.61% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
EWG iShares MSCI Germany ETF	3.61%	1.60%	2.38%	2.56%	3.24%	2.70%	1.67%	2.51%	2.93%	2.06%	2.35%	1.93%
EWJ iShares MSCI Japan ETF	4.42%	4.52%	2.34%	2.03%	1.23%	2.08%	1.04%	2.03%	1.71%	1.25%	1.95%	1.27%

Frequently Asked Questions

Can I hold both EWJ and EWG in my portfolio?

EWJ and EWG have a correlation of 0.66, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, EWJ or EWG?

EWJ has higher volatility (6.50%) compared to EWG (6.27%). In terms of maximum drawdown, EWJ dropped -60.93% vs EWG's -67.57%.

Which ETF is better, EWJ or EWG?

On 10-year performance, EWJ leads with 9.73% vs 8.07% for EWG. Both ETFs have the same 0.49% expense ratio. On volatility, EWG has been the lower-risk option at 6.27%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, EWJ or EWG?

Over the 10-year period, EWJ has performed better with a 9.73% return vs 8.07%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, EWJ or EWG?

EWJ and EWG have the same expense ratio: 0.49% per year.

Which ETF pays a higher dividend yield, EWJ or EWG?

EWJ has the higher dividend yield at 4.42%, compared with 3.61% for EWG.

What is the main difference between EWJ and EWG?

EWJ is categorized as Japan Equities, while EWG is Europe Equities. EWJ tracks MSCI Japan Index, while EWG tracks MSCI Germany Index.

Which has better risk-adjusted returns?

EWJ currently has the higher Sharpe Ratio (1.70 vs 0.26), 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.