EWJ vs. VXUS

Last updated Jun 14, 2026

EWJ (iShares MSCI Japan ETF) and VXUS (Vanguard Total International Stock ETF) are both exchange-traded funds - EWJ is a Japan Equities fund tracking the MSCI Japan Index, while VXUS is a Global Equities fund tracking the FTSE Global All Cap ex US Index. Both are passively managed. Over the past 10 years, EWJ returned 9.55%/yr vs 10.22%/yr for VXUS. A 0.79 correlation means they provide meaningful diversification when combined. EWJ charges 0.49%/yr vs 0.05%/yr for VXUS.

Performance

EWJ vs. VXUS - Performance Comparison

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

Returns By Period

In the year-to-date period, EWJ achieves a 14.83% return, which is significantly higher than VXUS's 13.69% return. Over the past 10 years, EWJ has underperformed VXUS with an annualized return of 9.55%, while VXUS has yielded a comparatively higher 10.22% 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%

VXUS

• 1D: 0.40%
• 1M: 3.09%
• YTD: 13.69%
• 6M: 15.52%
• 1Y: 30.12%
• 3Y*: 18.37%
• 5Y*: 8.32%
• 10Y*: 10.22%

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

EWJ vs. VXUS - 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%
VXUS Vanguard Total International Stock ETF	13.69%	32.35%	5.08%	15.86%	-16.08%	8.98%	10.66%	21.75%	-14.43%	27.46%

Correlation

The correlation between EWJ and VXUS is 0.83, 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	0.83
Correlation (3Y) Calculated over the trailing 3-year period	0.79
Correlation (5Y) Calculated over the trailing 5-year period	0.80
Correlation (10Y) Calculated over the trailing 10-year period	0.80
Correlation (All Time) Calculated using the full available price history since Jan 28, 2011	0.79

The correlation between EWJ and VXUS has been stable across timeframes, ranging from 0.79 to 0.83 - a consistent structural relationship.

EWJ vs. VXUS - Sectors Allocation Comparison

Sectors	EWJ	VXUS
Industrials	24.5%	16.1%
Technology	21.7%	18.1%
Financial Services	17.0%	22.3%
Consumer Cyclical	11.9%	8.4%
Communication Services	8.9%	4.4%
Healthcare	5.6%	7.1%
Basic Materials	3.4%	7.6%
Consumer Defensive	3.3%	5.0%
Real Estate	1.9%	2.6%
Utilities	1.0%	3.2%
Energy	0.9%	5.2%

Return for Risk

EWJ vs. VXUS — 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

VXUS

VXUS Risk / Return Rank: 61
VXUS Sharpe Ratio Rank: 61
VXUS Sortino Ratio Rank: 60
VXUS Omega Ratio Rank: 63
VXUS Calmar Ratio Rank: 58
VXUS Martin Ratio Rank: 62

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. VXUS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI Japan ETF (EWJ) and Vanguard Total International Stock ETF (VXUS). 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	VXUS	Difference
Sharpe ratio: Return per unit of total volatility	1.52	1.77	-0.25
Sortino ratio: Return per unit of downside risk	2.21	2.44	-0.24
Omega ratio: Gain probability vs. loss probability	1.28	1.33	-0.04
Calmar ratio: Return relative to maximum drawdown	2.27	2.53	-0.26
Martin ratio: Return relative to average drawdown	7.62	9.72	-2.10

EWJ vs. VXUS - Sharpe Ratio Comparison

The current EWJ Sharpe Ratio is 1.52, which is comparable to the VXUS Sharpe Ratio of 1.77. The chart below compares the historical Sharpe Ratios of EWJ and VXUS, 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. VXUS - Drawdown Comparison

The maximum EWJ drawdown since its inception was -60.93%, which is greater than VXUS's maximum drawdown of -35.97%. Use the drawdown chart below to compare losses from any high point for EWJ and VXUS.

Drawdown Indicators

	EWJ	VXUS	Difference
Max Drawdown Largest peak-to-trough decline	-60.93%	-35.97%	-24.96%
Max Drawdown (1Y) Largest decline over 1 year	-13.59%	-11.27%	-2.32%
Max Drawdown (3Y) Largest decline over 3 years	-14.68%	-13.58%	-1.10%
Max Drawdown (5Y) Largest decline over 5 years	-33.14%	-29.44%	-3.70%
Max Drawdown (10Y) Largest decline over 10 years	-33.14%	-35.97%	+2.83%
Current Drawdown Current decline from peak	-1.51%	-1.47%	-0.04%
Average Drawdown Average peak-to-trough decline	-21.72%	-8.21%	-13.51%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.04%	2.93%	+1.11%

Volatility

EWJ vs. VXUS - Volatility Comparison

The current volatility for iShares MSCI Japan ETF (EWJ) is 6.31%, while Vanguard Total International Stock ETF (VXUS) has a volatility of 6.71%. This indicates that EWJ experiences smaller price fluctuations and is considered to be less risky than VXUS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	EWJ	VXUS	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.31%	6.71%	-0.40%
Volatility (6M) Calculated over the trailing 6-month period	15.96%	14.02%	+1.94%
Volatility (1Y) Calculated over the trailing 1-year period	20.23%	16.09%	+4.14%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.38%	16.21%	+2.17%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.33%	17.20%	+0.13%

EWJ vs. VXUS - Expense Ratio Comparison

EWJ has a 0.49% expense ratio, which is higher than VXUS's 0.05% expense ratio.

Dividends

EWJ vs. VXUS - Dividend Comparison

EWJ's dividend yield for the trailing twelve months is around 3.94%, more than VXUS's 2.67% 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%
VXUS Vanguard Total International Stock ETF	2.67%	3.18%	3.37%	3.24%	3.09%	3.10%	2.14%	3.06%	3.18%	2.73%	2.93%	2.83%

Frequently Asked Questions

Can I hold both EWJ and VXUS in my portfolio?

EWJ and VXUS have a correlation of 0.83, 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 VXUS?

VXUS has higher volatility (6.71%) compared to EWJ (6.31%). In terms of maximum drawdown, EWJ dropped -60.93% vs VXUS's -35.97%.

Which ETF is better, EWJ or VXUS?

On 10-year performance, VXUS leads with 10.22% vs 9.55% for EWJ. On fees, VXUS is cheaper at 0.05% 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 VXUS?

Over the 10-year period, VXUS has performed better with a 10.22% 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 VXUS?

VXUS is cheaper with a 0.05% expense ratio, compared with 0.49% for EWJ.

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

EWJ has the higher dividend yield at 3.94%, compared with 2.67% for VXUS.

What is the main difference between EWJ and VXUS?

EWJ is categorized as Japan Equities, while VXUS is Global Equities. EWJ tracks MSCI Japan Index, while VXUS tracks FTSE Global All Cap ex US Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.49% for EWJ and 0.05% for VXUS.

Which has better risk-adjusted returns?

VXUS currently has the higher Sharpe Ratio (1.77 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.