EWJ vs. IAU

Last updated Jun 5, 2026

EWJ (iShares MSCI Japan ETF) and IAU (iShares Gold Trust) are both exchange-traded funds - EWJ is a Japan Equities fund tracking the MSCI Japan Index, while IAU is a Gold fund tracking the LBMA Gold Price. Both are passively managed. Over the past 10 years, EWJ returned 9.28%/yr vs 13.38%/yr for IAU. At a 0.14 correlation, their price movements are largely independent. EWJ charges 0.49%/yr vs 0.25%/yr for IAU.

Performance

EWJ vs. IAU - Performance Comparison

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

Returns By Period

In the year-to-date period, EWJ achieves a 16.58% return, which is significantly higher than IAU's 3.83% return. Over the past 10 years, EWJ has underperformed IAU with an annualized return of 9.28%, while IAU has yielded a comparatively higher 13.38% annualized return.

EWJ

• 1D: 0.20%
• 1M: 5.46%
• YTD: 16.58%
• 6M: 16.78%
• 1Y: 32.89%
• 3Y*: 18.51%
• 5Y*: 8.84%
• 10Y*: 9.28%

IAU

• 1D: 0.83%
• 1M: -1.65%
• YTD: 3.83%
• 6M: 6.31%
• 1Y: 32.47%
• 3Y*: 31.39%
• 5Y*: 18.52%
• 10Y*: 13.38%

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

EWJ vs. IAU - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
EWJ iShares MSCI Japan ETF	16.58%	25.84%	7.03%	20.29%	-17.72%	1.16%	15.40%	19.34%	-14.10%	24.27%
IAU iShares Gold Trust	3.83%	63.95%	26.85%	12.84%	-0.63%	-4.00%	25.03%	17.98%	-1.76%	12.91%

Correlation

The correlation between EWJ and IAU is 0.29, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.29
Correlation (3Y) Calculated over the trailing 3-year period	0.29
Correlation (5Y) Calculated over the trailing 5-year period	0.27
Correlation (10Y) Calculated over the trailing 10-year period	0.16
Correlation (All Time) Calculated using the full available price history since Jan 31, 2005	0.14

The correlation between EWJ and IAU shifts across timeframes, from 0.14 (all time) to 0.29 (3 years), reflecting how their relationship changes across market environments.

EWJ vs. IAU - Sectors Allocation Comparison

Sectors	EWJ	IAU
Industrials	26.0%	-
Technology	19.1%	-
Financial Services	17.5%	-
Consumer Cyclical	12.2%	-
Communication Services	7.9%	-
Healthcare	6.3%	-
Consumer Defensive	3.6%	-
Basic Materials	3.0%	-
Real Estate	2.3%	100.0%
Utilities	1.1%	-
Energy	1.1%	-

Return for Risk

EWJ vs. IAU — Risk / Return Rank

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

EWJ

EWJ Risk / Return Rank: 51
EWJ Sharpe Ratio Rank: 50
EWJ Sortino Ratio Rank: 51
EWJ Omega Ratio Rank: 52
EWJ Calmar Ratio Rank: 50
EWJ Martin Ratio Rank: 50

IAU

IAU Risk / Return Rank: 34
IAU Sharpe Ratio Rank: 35
IAU Sortino Ratio Rank: 32
IAU Omega Ratio Rank: 39
IAU Calmar Ratio Rank: 35
IAU Martin Ratio Rank: 29

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. IAU - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI Japan ETF (EWJ) and iShares Gold Trust (IAU). 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.

	EWJ	IAU	Difference
Sharpe ratio: Return per unit of total volatility	1.70	1.24	+0.46
Sortino ratio: Return per unit of downside risk	2.45	1.63	+0.82
Omega ratio: Gain probability vs. loss probability	1.32	1.25	+0.07
Calmar ratio: Return relative to maximum drawdown	2.43	1.70	+0.73
Martin ratio: Return relative to average drawdown	8.23	4.18	+4.05
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

EWJ vs. IAU - Sharpe Ratio Comparison

The current EWJ Sharpe Ratio is 1.70, which is higher than the IAU Sharpe Ratio of 1.24. The chart below compares the historical Sharpe Ratios of EWJ and IAU, 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

	EWJ	IAU	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.70	1.24	+0.46
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.49	1.04	-0.55
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.54	0.84	-0.31
Sharpe Ratio (All Time) Calculated using the full available price history	0.11	0.63	-0.51

Drawdowns

EWJ vs. IAU - Drawdown Comparison

The maximum EWJ drawdown since its inception was -60.93%, which is greater than IAU's maximum drawdown of -45.14%. Use the drawdown chart below to compare losses from any high point for EWJ and IAU.

Drawdown Indicators

	EWJ	IAU	Difference
Max Drawdown Largest peak-to-trough decline	-60.93%	-45.14%	-15.79%
Max Drawdown (1Y) Largest decline over 1 year	-13.59%	-19.18%	+5.59%
Max Drawdown (3Y) Largest decline over 3 years	-14.68%	-19.18%	+4.50%
Max Drawdown (5Y) Largest decline over 5 years	-33.14%	-20.93%	-12.21%
Max Drawdown (10Y) Largest decline over 10 years	-33.14%	-21.82%	-11.32%
Current Drawdown Current decline from peak	0.00%	-17.02%	+17.02%
Average Drawdown Average peak-to-trough decline	-21.74%	-15.96%	-5.78%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.01%	7.79%	-3.78%

Volatility

EWJ vs. IAU - Volatility Comparison

The current volatility for iShares MSCI Japan ETF (EWJ) is 4.21%, while iShares Gold Trust (IAU) has a volatility of 5.50%. This indicates that EWJ experiences smaller price fluctuations and is considered to be less risky than IAU based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	EWJ	IAU	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.21%	5.50%	-1.29%
Volatility (6M) Calculated over the trailing 6-month period	15.02%	23.03%	-8.01%
Volatility (1Y) Calculated over the trailing 1-year period	19.49%	26.41%	-6.92%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.23%	17.94%	+0.29%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.27%	15.90%	+1.37%

EWJ vs. IAU - Expense Ratio Comparison

EWJ has a 0.49% expense ratio, which is higher than IAU's 0.25% expense ratio.

Dividends

EWJ vs. IAU - Dividend Comparison

EWJ's dividend yield for the trailing twelve months is around 3.88%, while IAU has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
EWJ iShares MSCI Japan ETF	3.88%	4.52%	2.34%	2.03%	1.23%	2.08%	1.04%	2.03%	1.71%	1.25%	1.95%	1.27%
IAU iShares Gold Trust	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both EWJ and IAU in my portfolio?

EWJ and IAU have a correlation of 0.29, 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 IAU?

IAU has higher volatility (5.50%) compared to EWJ (4.21%). In terms of maximum drawdown, EWJ dropped -60.93% vs IAU's -45.14%.

Which ETF is better, EWJ or IAU?

On 10-year performance, IAU leads with 13.38% vs 9.28% for EWJ. On fees, IAU is cheaper at 0.25% per year. On volatility, EWJ has been the lower-risk option at 4.21%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, EWJ or IAU?

Over the 10-year period, IAU has performed better with a 13.38% return vs 9.28%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, EWJ or IAU?

IAU is cheaper with a 0.25% expense ratio, compared with 0.49% for EWJ.

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

EWJ has the higher dividend yield at 3.88%, compared with 0.00% for IAU.

What is the main difference between EWJ and IAU?

EWJ is categorized as Japan Equities, while IAU is Gold. EWJ tracks MSCI Japan Index, while IAU tracks LBMA Gold Price. Their fees differ too: 0.49% for EWJ and 0.25% for IAU.

Which has better risk-adjusted returns?

EWJ currently has the higher Sharpe Ratio (1.70 vs 1.24), 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.