EWM vs. AAXJ

Last updated Jun 3, 2026

EWM (iShares MSCI Malaysia ETF) and AAXJ (iShares MSCI All Country Asia ex-Japan ETF) are both Asia Pacific Equities funds from iShares - EWM tracks the MSCI Malaysia Index while AAXJ tracks the MSCI All Country Asia ex Japan Index. Both are passively managed. Over the past 10 years, EWM returned 2.84%/yr vs 10.62%/yr for AAXJ. A 0.69 correlation means they provide meaningful diversification when combined. EWM charges 0.49%/yr vs 0.68%/yr for AAXJ.

Performance

EWM vs. AAXJ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares MSCI Malaysia ETF (EWM) and iShares MSCI All Country Asia ex-Japan ETF (AAXJ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, EWM achieves a 4.93% return, which is significantly lower than AAXJ's 32.58% return. Over the past 10 years, EWM has underperformed AAXJ with an annualized return of 2.84%, while AAXJ has yielded a comparatively higher 10.62% annualized return.

EWM

• 1D: 0.31%
• 1M: -2.71%
• YTD: 4.93%
• 6M: 9.37%
• 1Y: 23.36%
• 3Y*: 15.41%
• 5Y*: 4.96%
• 10Y*: 2.84%

AAXJ

• 1D: 0.96%
• 1M: 12.09%
• YTD: 32.58%
• 6M: 35.11%
• 1Y: 60.93%
• 3Y*: 24.93%
• 5Y*: 7.46%
• 10Y*: 10.62%

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

EWM vs. AAXJ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
EWM iShares MSCI Malaysia ETF	4.93%	15.74%	19.46%	-3.61%	-6.00%	-7.40%	3.12%	-1.41%	-6.28%	24.25%
AAXJ iShares MSCI All Country Asia ex-Japan ETF	32.58%	31.53%	10.41%	4.79%	-20.35%	-5.73%	23.35%	17.93%	-15.04%	41.76%

Correlation

The correlation between EWM and AAXJ is 0.57, 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	0.57
Correlation (3Y) Calculated over the trailing 3-year period	0.53
Correlation (5Y) Calculated over the trailing 5-year period	0.52
Correlation (10Y) Calculated over the trailing 10-year period	0.61
Correlation (All Time) Calculated using the full available price history since Aug 18, 2008	0.69

The correlation between EWM and AAXJ shifts across timeframes, from 0.52 (5 years) to 0.69 (all time), reflecting how their relationship changes across market environments.

EWM vs. AAXJ - Sectors Allocation Comparison

Sectors	EWM	AAXJ
Financial Services	46.6%	17.7%
Industrials	11.1%	8.3%
Utilities	10.8%	1.8%
Basic Materials	8.9%	3.5%
Consumer Defensive	7.3%	2.4%
Communication Services	6.6%	6.9%
Energy	3.9%	2.7%
Healthcare	3.8%	3.0%
Consumer Cyclical	1.1%	10.3%
Real Estate	-	1.7%
Technology	-	41.6%

Return for Risk

EWM vs. AAXJ — Risk / Return Rank

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

EWM

EWM Risk / Return Rank: 53
EWM Sharpe Ratio Rank: 49
EWM Sortino Ratio Rank: 48
EWM Omega Ratio Rank: 47
EWM Calmar Ratio Rank: 66
EWM Martin Ratio Rank: 56

AAXJ

AAXJ Risk / Return Rank: 86
AAXJ Sharpe Ratio Rank: 89
AAXJ Sortino Ratio Rank: 85
AAXJ Omega Ratio Rank: 88
AAXJ Calmar Ratio Rank: 84
AAXJ Martin Ratio Rank: 85

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.

EWM vs. AAXJ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI Malaysia ETF (EWM) and iShares MSCI All Country Asia ex-Japan ETF (AAXJ). 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.

	EWM	AAXJ	Difference
Sharpe ratio Return per unit of total volatility	1.70	3.03	-1.33
Sortino ratio Return per unit of downside risk	2.38	3.88	-1.50
Omega ratio Gain probability vs. loss probability	1.30	1.55	-0.25
Calmar ratio Return relative to maximum drawdown	3.35	4.58	-1.23
Martin ratio Return relative to average drawdown	9.82	17.71	-7.89
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

EWM vs. AAXJ - Sharpe Ratio Comparison

The current EWM Sharpe Ratio is 1.70, which is lower than the AAXJ Sharpe Ratio of 3.03. The chart below compares the historical Sharpe Ratios of EWM and AAXJ, 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

	EWM	AAXJ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.70	3.03	-1.33
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.36	0.38	-0.01
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.18	0.53	-0.35
Sharpe Ratio (All Time) Calculated using the full available price history	0.07	0.29	-0.22

Drawdowns

EWM vs. AAXJ - Drawdown Comparison

The maximum EWM drawdown since its inception was -89.19%, which is greater than AAXJ's maximum drawdown of -49.37%. Use the drawdown chart below to compare losses from any high point for EWM and AAXJ.

Drawdown Indicators

	EWM	AAXJ	Difference
Max Drawdown Largest peak-to-trough decline	-89.19%	-49.37%	-39.82%
Max Drawdown (1Y) Largest decline over 1 year	-7.27%	-13.66%	+6.39%
Max Drawdown (3Y) Largest decline over 3 years	-21.31%	-19.74%	-1.57%
Max Drawdown (5Y) Largest decline over 5 years	-22.76%	-40.74%	+17.98%
Max Drawdown (10Y) Largest decline over 10 years	-43.81%	-44.52%	+0.71%
Current Drawdown Current decline from peak	-7.27%	0.00%	-7.27%
Average Drawdown Average peak-to-trough decline	-31.83%	-14.03%	-17.80%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.48%	3.53%	-1.05%

Volatility

EWM vs. AAXJ - Volatility Comparison

The current volatility for iShares MSCI Malaysia ETF (EWM) is 3.50%, while iShares MSCI All Country Asia ex-Japan ETF (AAXJ) has a volatility of 8.78%. This indicates that EWM experiences smaller price fluctuations and is considered to be less risky than AAXJ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	EWM	AAXJ	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.50%	8.78%	-5.28%
Volatility (6M) Calculated over the trailing 6-month period	10.59%	17.42%	-6.83%
Volatility (1Y) Calculated over the trailing 1-year period	13.79%	20.23%	-6.44%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.66%	19.94%	-6.28%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.27%	20.25%	-3.98%

EWM vs. AAXJ - Expense Ratio Comparison

EWM has a 0.49% expense ratio, which is lower than AAXJ's 0.68% expense ratio.

Dividends

EWM vs. AAXJ - Dividend Comparison

EWM's dividend yield for the trailing twelve months is around 3.25%, more than AAXJ's 1.36% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AAXJ iShares MSCI All Country Asia ex-Japan ETF	1.36%	1.81%	1.86%	1.95%	1.74%	2.21%	1.06%	1.83%	2.10%	1.99%	1.77%	2.44%
EWM iShares MSCI Malaysia ETF	3.25%	3.41%	3.32%	3.47%	3.00%	6.48%	1.89%	2.91%	3.84%	5.58%	5.97%	37.54%

Frequently Asked Questions

Can I hold both EWM and AAXJ in my portfolio?

EWM and AAXJ have a correlation of 0.57, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, EWM or AAXJ?

AAXJ has higher volatility (8.78%) compared to EWM (3.50%). In terms of maximum drawdown, EWM dropped -89.19% vs AAXJ's -49.37%.

Which ETF is better, EWM or AAXJ?

On 10-year performance, AAXJ leads with 10.62% vs 2.84% for EWM. On fees, EWM is cheaper at 0.49% per year. On volatility, EWM has been the lower-risk option at 3.50%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, EWM or AAXJ?

Over the 10-year period, AAXJ has performed better with a 10.62% return vs 2.84%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, EWM or AAXJ?

EWM is cheaper with a 0.49% expense ratio, compared with 0.68% for AAXJ.

Which ETF pays a higher dividend yield, EWM or AAXJ?

EWM has the higher dividend yield at 3.25%, compared with 1.36% for AAXJ.

What is the main difference between EWM and AAXJ?

EWM tracks MSCI Malaysia Index, while AAXJ tracks MSCI All Country Asia ex Japan Index. Their fees differ too: 0.49% for EWM and 0.68% for AAXJ.

Which has better risk-adjusted returns?

AAXJ currently has the higher Sharpe Ratio (3.03 vs 1.70), 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.