EWJ vs VYM
iShares MSCI Japan ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. EWJ delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | EWJ | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.49% | 0.04% | |
| AUM | $21.6B | $79.0B | |
| Dividend Yield | 3.81% | 2.86% | |
| Holdings | 174 | 568 | |
| YTD Return | +18.74% | +16.10% | |
| 1Y Return | +28.79% | +25.99% | |
| 3Y Return (annualized) | +19.54% | +18.29% | |
| 5Y Return (annualized) | +9.79% | +12.35% | |
| Volatility (annualized) | 17.7% | 14.6% | |
| Max Drawdown | -62.2% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Mar 12, 1996 | Nov 10, 2006 |
EWJ vs VYM Performance
iShares MSCI Japan ETF (EWJ) is a ETF from iShares by BlackRock (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year EWJ returned +28.79% while VYM returned +25.99%. Year to date, EWJ is up 18.74% versus a gain of 16.10% for VYM.
Over three years, EWJ compounded at +19.54% per year against +18.29% for VYM; over five years the annualized figures are +9.79% and +12.35% respectively. Across the full 20-year window we track, VYM has the edge at +7.08% annualized vs +1.83%. 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 14.6% for VYM. 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 -58.8% for VYM. 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 0.71. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
EWJ charges 0.49% per year while VYM charges 0.04%. On a $10,000 position that is $49 vs $4 annually, a gap of $45 per year that compounds over a long holding period. On income, EWJ currently yields 3.81% against 2.86% for VYM.
Holdings Overlap
EWJ and VYM share 0 holdings out of 727 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 VYM?
EWJ has an expense ratio of 0.49% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $45 per year of difference.
Which performed better, EWJ or VYM?
Over the past year EWJ returned +28.79% vs +25.99% for VYM, so EWJ leads on 1-year performance. Over the longest common window we track (20 years), EWJ annualized +1.83% vs +7.08% for VYM. Past performance does not guarantee future results.
Which is riskier, EWJ or VYM?
EWJ has been the more volatile fund at 17.7% annualized versus 14.6% for VYM. Worst drawdown: EWJ -62.2% vs VYM -58.8%.
Should I hold both EWJ and VYM?
EWJ and VYM have a monthly-return correlation of 0.71, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between EWJ and VYM?
EWJ and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 727 unique securities.
Which pays a higher dividend, EWJ or VYM?
EWJ yields 3.81% while VYM yields 2.86%, so EWJ currently pays the higher dividend yield.
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