EWJ vs. VEA

Last updated Jun 14, 2026

EWJ (iShares MSCI Japan ETF) and VEA (Vanguard FTSE Developed Markets ETF) are both exchange-traded funds - EWJ is a Japan Equities fund tracking the MSCI Japan Index, while VEA is a Foreign Large Cap Equities fund tracking the FTSE Developed All Cap ex US Index. Both are passively managed. Over the past 10 years, EWJ returned 9.55%/yr vs 10.72%/yr for VEA. Their correlation of 0.81 suggests significant overlap in exposure. EWJ charges 0.49%/yr vs 0.03%/yr for VEA.

Performance

EWJ vs. VEA - Performance Comparison

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

Returns By Period

The year-to-date returns for both stocks are quite close, with EWJ having a 14.83% return and VEA slightly lower at 14.73%. Over the past 10 years, EWJ has underperformed VEA with an annualized return of 9.55%, while VEA has yielded a comparatively higher 10.72% annualized return.

EWJ

• 1D: 0.57%
• 1M: 1.80%
• YTD: 14.83%
• 6M: 14.50%
• 1Y: 31.74%
• 3Y*: 16.57%
• 5Y*: 8.56%
• 10Y*: 9.55%

VEA

• 1D: 0.34%
• 1M: 3.58%
• YTD: 14.73%
• 6M: 16.65%
• 1Y: 31.41%
• 3Y*: 19.03%
• 5Y*: 9.51%
• 10Y*: 10.72%

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

EWJ vs. VEA - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
EWJ iShares MSCI Japan ETF	14.83%	25.84%	7.03%	20.29%	-17.72%	1.16%	15.40%	19.34%	-14.10%	24.27%
VEA Vanguard FTSE Developed Markets ETF	14.73%	35.16%	3.15%	17.93%	-15.34%	11.66%	9.71%	22.62%	-14.75%	26.42%

Correlation

The correlation between EWJ and VEA is 0.85, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.85
Correlation (3Y) Calculated over the trailing 3-year period	0.82
Correlation (5Y) Calculated over the trailing 5-year period	0.83
Correlation (10Y) Calculated over the trailing 10-year period	0.83
Correlation (All Time) Calculated using the full available price history since Jul 26, 2007	0.81

The correlation between EWJ and VEA has been stable across timeframes, ranging from 0.81 to 0.85 - a consistent structural relationship.

EWJ vs. VEA - Sectors Allocation Comparison

Sectors	EWJ	VEA
Industrials	24.5%	19.2%
Technology	21.7%	13.8%
Financial Services	17.0%	23.3%
Consumer Cyclical	11.9%	7.5%
Communication Services	8.9%	3.4%
Healthcare	5.6%	8.2%
Basic Materials	3.4%	7.5%
Consumer Defensive	3.3%	5.6%
Real Estate	1.9%	2.7%
Utilities	1.0%	3.3%
Energy	0.9%	5.4%

Return for Risk

EWJ vs. VEA — 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: 52
EWJ Omega Ratio Rank: 51
EWJ Calmar Ratio Rank: 51
EWJ Martin Ratio Rank: 51

VEA

VEA Risk / Return Rank: 62
VEA Sharpe Ratio Rank: 63
VEA Sortino Ratio Rank: 62
VEA Omega Ratio Rank: 63
VEA Calmar Ratio Rank: 59
VEA Martin Ratio Rank: 63

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. VEA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI Japan ETF (EWJ) and Vanguard FTSE Developed Markets ETF (VEA). 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	VEA	Difference
Sharpe ratio: Return per unit of total volatility	1.52	1.81	-0.29
Sortino ratio: Return per unit of downside risk	2.21	2.50	-0.30
Omega ratio: Gain probability vs. loss probability	1.28	1.33	-0.05
Calmar ratio: Return relative to maximum drawdown	2.27	2.58	-0.31
Martin ratio: Return relative to average drawdown	7.62	9.92	-2.30

EWJ vs. VEA - Sharpe Ratio Comparison

The current EWJ Sharpe Ratio is 1.52, which is comparable to the VEA Sharpe Ratio of 1.81. The chart below compares the historical Sharpe Ratios of EWJ and VEA, 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. VEA - Drawdown Comparison

The maximum EWJ drawdown since its inception was -60.93%, roughly equal to the maximum VEA drawdown of -60.68%. Use the drawdown chart below to compare losses from any high point for EWJ and VEA.

Drawdown Indicators

	EWJ	VEA	Difference
Max Drawdown Largest peak-to-trough decline	-60.93%	-60.68%	-0.25%
Max Drawdown (1Y) Largest decline over 1 year	-13.59%	-11.63%	-1.96%
Max Drawdown (3Y) Largest decline over 3 years	-14.68%	-13.45%	-1.23%
Max Drawdown (5Y) Largest decline over 5 years	-33.14%	-29.71%	-3.43%
Max Drawdown (10Y) Largest decline over 10 years	-33.14%	-35.73%	+2.59%
Current Drawdown Current decline from peak	-1.51%	-1.06%	-0.45%
Average Drawdown Average peak-to-trough decline	-21.72%	-13.28%	-8.44%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.04%	3.02%	+1.02%

Volatility

EWJ vs. VEA - Volatility Comparison

The current volatility for iShares MSCI Japan ETF (EWJ) is 6.31%, while Vanguard FTSE Developed Markets ETF (VEA) has a volatility of 6.84%. This indicates that EWJ experiences smaller price fluctuations and is considered to be less risky than VEA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	EWJ	VEA	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.31%	6.84%	-0.53%
Volatility (6M) Calculated over the trailing 6-month period	15.96%	14.38%	+1.58%
Volatility (1Y) Calculated over the trailing 1-year period	20.23%	16.58%	+3.65%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.38%	16.72%	+1.66%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.33%	17.40%	-0.07%

EWJ vs. VEA - Expense Ratio Comparison

EWJ has a 0.49% expense ratio, which is higher than VEA's 0.03% expense ratio.

Dividends

EWJ vs. VEA - Dividend Comparison

EWJ's dividend yield for the trailing twelve months is around 3.94%, more than VEA's 2.62% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
EWJ iShares MSCI Japan ETF	3.94%	4.52%	2.34%	2.03%	1.23%	2.08%	1.04%	2.03%	1.71%	1.25%	1.95%	1.27%
VEA Vanguard FTSE Developed Markets ETF	2.62%	3.22%	3.35%	3.15%	2.91%	3.16%	2.04%	3.04%	3.35%	2.77%	3.05%	2.92%

Frequently Asked Questions

Can I hold both EWJ and VEA in my portfolio?

EWJ and VEA have a correlation of 0.85, 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 VEA?

VEA has higher volatility (6.84%) compared to EWJ (6.31%). In terms of maximum drawdown, EWJ dropped -60.93% vs VEA's -60.68%.

Which ETF is better, EWJ or VEA?

On 10-year performance, VEA leads with 10.72% vs 9.55% for EWJ. On fees, VEA is cheaper at 0.03% per year. On volatility, EWJ has been the lower-risk option at 6.31%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, EWJ or VEA?

Over the 10-year period, VEA has performed better with a 10.72% return vs 9.55%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, EWJ or VEA?

VEA is cheaper with a 0.03% expense ratio, compared with 0.49% for EWJ.

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

EWJ has the higher dividend yield at 3.94%, compared with 2.62% for VEA.

What is the main difference between EWJ and VEA?

EWJ is categorized as Japan Equities, while VEA is Foreign Large Cap Equities. EWJ tracks MSCI Japan Index, while VEA tracks FTSE Developed All Cap ex US Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.49% for EWJ and 0.03% for VEA.

Which has better risk-adjusted returns?

VEA currently has the higher Sharpe Ratio (1.81 vs 1.52), 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.