SPY vs. EWJ

Last updated Jun 9, 2026

SPY (State Street SPDR S&P 500 ETF) and EWJ (iShares MSCI Japan ETF) are both exchange-traded funds - SPY is a S&P 500 fund tracking the S&P 500 Index, while EWJ is a Japan Equities fund tracking the MSCI Japan Index. Both are passively managed. Over the past 10 years, SPY returned 15.27%/yr vs 9.21%/yr for EWJ. A 0.58 correlation means they provide meaningful diversification when combined. SPY charges 0.09%/yr vs 0.49%/yr for EWJ.

Performance

SPY vs. EWJ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in State Street SPDR S&P 500 ETF (SPY) and iShares MSCI Japan ETF (EWJ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SPY achieves a 8.70% return, which is significantly lower than EWJ's 13.88% return. Over the past 10 years, SPY has outperformed EWJ with an annualized return of 15.27%, while EWJ has yielded a comparatively lower 9.21% annualized return.

SPY

• 1D: 0.23%
• 1M: 0.22%
• YTD: 8.70%
• 6M: 8.75%
• 1Y: 24.79%
• 3Y*: 21.35%
• 5Y*: 13.42%
• 10Y*: 15.27%

EWJ

• 1D: 1.36%
• 1M: -0.29%
• YTD: 13.88%
• 6M: 14.67%
• 1Y: 30.27%
• 3Y*: 17.05%
• 5Y*: 8.50%
• 10Y*: 9.21%

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

SPY vs. EWJ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SPY State Street SPDR S&P 500 ETF	8.70%	17.72%	24.89%	26.18%	-18.18%	28.73%	18.33%	31.22%	-4.57%	21.71%
EWJ iShares MSCI Japan ETF	13.88%	25.84%	7.03%	20.29%	-17.72%	1.16%	15.40%	19.34%	-14.10%	24.27%

Correlation

The correlation between SPY and EWJ is 0.64, 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	0.64
Correlation (3Y) Calculated over the trailing 3-year period	0.61
Correlation (5Y) Calculated over the trailing 5-year period	0.66
Correlation (10Y) Calculated over the trailing 10-year period	0.67
Correlation (All Time) Calculated using the full available price history since Apr 2, 1996	0.58

The correlation between SPY and EWJ has been stable across timeframes, ranging from 0.58 to 0.67 - a consistent structural relationship.

SPY vs. EWJ - Sectors Allocation Comparison

Sectors	SPY	EWJ
Technology	35.9%	19.1%
Financial Services	11.8%	17.5%
Communication Services	11.3%	7.9%
Consumer Cyclical	10.3%	12.2%
Healthcare	8.4%	6.3%
Industrials	7.8%	26.0%
Consumer Defensive	4.8%	3.6%
Energy	3.6%	1.1%
Utilities	2.4%	1.1%
Real Estate	1.9%	2.3%
Basic Materials	1.8%	3.0%

Return for Risk

SPY vs. EWJ — Risk / Return Rank

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

SPY

SPY Risk / Return Rank: 69
SPY Sharpe Ratio Rank: 70
SPY Sortino Ratio Rank: 67
SPY Omega Ratio Rank: 70
SPY Calmar Ratio Rank: 62
SPY Martin Ratio Rank: 75

EWJ

EWJ Risk / Return Rank: 50
EWJ Sharpe Ratio Rank: 48
EWJ Sortino Ratio Rank: 50
EWJ Omega Ratio Rank: 51
EWJ Calmar Ratio Rank: 50
EWJ Martin Ratio Rank: 49

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.

SPY vs. EWJ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for State Street SPDR S&P 500 ETF (SPY) and iShares MSCI Japan ETF (EWJ). 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.

	SPY	EWJ	Difference
Sharpe ratio: Return per unit of total volatility	2.06	1.53	+0.53
Sortino ratio: Return per unit of downside risk	2.78	2.21	+0.57
Omega ratio: Gain probability vs. loss probability	1.38	1.29	+0.09
Calmar ratio: Return relative to maximum drawdown	2.80	2.24	+0.57
Martin ratio: Return relative to average drawdown	12.93	7.56	+5.38
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SPY vs. EWJ - Sharpe Ratio Comparison

The current SPY Sharpe Ratio is 2.06, which is higher than the EWJ Sharpe Ratio of 1.53. The chart below compares the historical Sharpe Ratios of SPY and EWJ, 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

	SPY	EWJ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.06	1.53	+0.53
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.79	0.47	+0.32
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.85	0.53	+0.32
Sharpe Ratio (All Time) Calculated using the full available price history	0.58	0.11	+0.47

Drawdowns

SPY vs. EWJ - Drawdown Comparison

The maximum SPY drawdown since its inception was -55.19%, smaller than the maximum EWJ drawdown of -60.93%. Use the drawdown chart below to compare losses from any high point for SPY and EWJ.

Drawdown Indicators

	SPY	EWJ	Difference
Max Drawdown Largest peak-to-trough decline	-55.19%	-60.93%	+5.74%
Max Drawdown (1Y) Largest decline over 1 year	-8.88%	-13.59%	+4.71%
Max Drawdown (3Y) Largest decline over 3 years	-18.76%	-14.68%	-4.08%
Max Drawdown (5Y) Largest decline over 5 years	-24.50%	-33.14%	+8.64%
Max Drawdown (10Y) Largest decline over 10 years	-33.72%	-33.14%	-0.58%
Current Drawdown Current decline from peak	-2.68%	-2.32%	-0.36%
Average Drawdown Average peak-to-trough decline	-9.04%	-21.73%	+12.69%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.92%	4.02%	-2.10%

Volatility

SPY vs. EWJ - Volatility Comparison

The current volatility for State Street SPDR S&P 500 ETF (SPY) is 3.72%, while iShares MSCI Japan ETF (EWJ) has a volatility of 5.21%. This indicates that SPY experiences smaller price fluctuations and is considered to be less risky than EWJ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SPY	EWJ	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.72%	5.21%	-1.49%
Volatility (6M) Calculated over the trailing 6-month period	9.31%	15.51%	-6.20%
Volatility (1Y) Calculated over the trailing 1-year period	12.10%	19.89%	-7.79%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.09%	18.31%	-1.22%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.96%	17.31%	+0.65%

SPY vs. EWJ - Expense Ratio Comparison

SPY has a 0.09% expense ratio, which is lower than EWJ's 0.49% expense ratio.

Dividends

SPY vs. EWJ - Dividend Comparison

SPY's dividend yield for the trailing twelve months is around 1.00%, less than EWJ's 3.97% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
EWJ iShares MSCI Japan ETF	3.97%	4.52%	2.34%	2.03%	1.23%	2.08%	1.04%	2.03%	1.71%	1.25%	1.95%	1.27%
SPY State Street SPDR S&P 500 ETF	1.00%	1.07%	1.21%	1.40%	1.65%	1.20%	1.52%	1.75%	2.04%	1.80%	2.03%	2.06%

Frequently Asked Questions

Can I hold both SPY and EWJ in my portfolio?

SPY and EWJ have a correlation of 0.64, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SPY or EWJ?

EWJ has higher volatility (5.21%) compared to SPY (3.72%). In terms of maximum drawdown, SPY dropped -55.19% vs EWJ's -60.93%.

Which ETF is better, SPY or EWJ?

On 10-year performance, SPY leads with 15.27% vs 9.21% for EWJ. On fees, SPY is cheaper at 0.09% per year. On volatility, SPY has been the lower-risk option at 3.72%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SPY or EWJ?

Over the 10-year period, SPY has performed better with a 15.27% return vs 9.21%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SPY or EWJ?

SPY is cheaper with a 0.09% expense ratio, compared with 0.49% for EWJ.

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

EWJ has the higher dividend yield at 3.97%, compared with 1.00% for SPY.

What is the main difference between SPY and EWJ?

SPY is categorized as S&P 500, while EWJ is Japan Equities. SPY tracks S&P 500 Index, while EWJ tracks MSCI Japan Index. They also come from different issuers: State Street and iShares. Their fees differ too: 0.09% for SPY and 0.49% for EWJ.

Which has better risk-adjusted returns?

SPY currently has the higher Sharpe Ratio (2.06 vs 1.53), 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.