EWJ vs SPY
iShares MSCI Japan ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. EWJ delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | EWJ | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.49% | 0.09% | |
| AUM | $21.6B | $789.1B | |
| Dividend Yield | 3.81% | 1.01% | |
| Holdings | 174 | 505 | |
| YTD Return | +19.03% | +13.39% | |
| 1Y Return | +29.10% | +22.52% | |
| 3Y Return (annualized) | +20.03% | +21.36% | |
| 5Y Return (annualized) | +9.57% | +13.19% | |
| Volatility (annualized) | 17.7% | 15.3% | |
| Max Drawdown | -62.2% | -56.5% | |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Mar 12, 1996 | Jan 22, 1993 |
EWJ vs SPY Performance
iShares MSCI Japan ETF (EWJ) is a ETF from iShares by BlackRock (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year EWJ returned +29.10% while SPY returned +22.52%. Year to date, EWJ is up 19.03% versus a gain of 13.39% for SPY.
Over three years, EWJ compounded at +20.03% per year against +21.36% for SPY; over five years the annualized figures are +9.57% and +13.19% respectively. Across the full 30-year window we track, SPY has the edge at +8.84% annualized vs +1.84%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
EWJ has been the more volatile fund, with annualized monthly volatility of 17.7% compared with 15.3% for SPY. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -62.2% for EWJ and -56.5% for SPY. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.60. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
EWJ charges 0.49% per year while SPY charges 0.09%. On a $10,000 position that is $49 vs $9 annually, a gap of $40 per year that compounds over a long holding period. On income, EWJ currently yields 3.81% against 1.01% for SPY.
Holdings Overlap
EWJ and SPY share 0 holdings out of 672 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, EWJ or SPY?
EWJ has an expense ratio of 0.49% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $40 per year of difference.
Which performed better, EWJ or SPY?
Over the past year EWJ returned +29.10% vs +22.52% for SPY, so EWJ leads on 1-year performance. Over the longest common window we track (30 years), EWJ annualized +1.84% vs +8.84% for SPY. Past performance does not guarantee future results.
Which is riskier, EWJ or SPY?
EWJ has been the more volatile fund at 17.7% annualized versus 15.3% for SPY. Worst drawdown: EWJ -62.2% vs SPY -56.5%.
Should I hold both EWJ and SPY?
EWJ and SPY have a monthly-return correlation of 0.60, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between EWJ and SPY?
EWJ and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 672 unique securities.
Which pays a higher dividend, EWJ or SPY?
EWJ yields 3.81% while SPY yields 1.01%, so EWJ currently pays the higher dividend yield.
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