Average Daily Volume
5.31M
Fund Overview
The iShares MSCI Japan ETF (EWJ) is designed to track the investment results of the MSCI Japan Index, which measures the performance of the Japanese equity market. The fund provides exposure to large and mid-sized companies in Japan, offering investors a way to gain diversified access to one of the world's largest developed economies. EWJ is one of the most established and liquid ETFs focusing on Japanese equities, with a history dating back to 1996. The fund holds a broad range of sectors, including industrials, consumer discretionary, and technology, reflecting the composition of the Japanese market. With over $14 billion in assets under management, EWJ is a popular choice for investors seeking targeted exposure to Japan.
- Asset Class
-
Equity
- Industry
-
N/A
- Annual Dividend Rate
-
- Smart Beta
-
No
- Leveraged / Inverse
-
N/A / No
- Dividend Quality - Yield
-
- 1.52 %
- Currency Hedged
-
No
- Portfolio Turnover
-
6 %
- Dividend Date
-
Why Invest in the EWJ ETF?
Potential Benefits
- Provides diversified exposure to large and mid-cap Japanese equities, reducing single-stock risk.
- Liquidity and tight bid-ask spreads due to the fund's large size and established history.
- Low expense ratio compared to actively managed Japan-focused funds.
- Offers a convenient way to invest in Japan without the complexities of direct foreign stock ownership.
- Potential for currency diversification benefits as the fund holds yen-denominated assets.
Potential Risks
- Exposure to currency fluctuations between the Japanese yen and the investor's home currency.
- Japan's economy has experienced prolonged periods of low growth and deflationary pressures.
- Concentration in certain sectors like industrials and consumer discretionary may increase volatility.
- Geopolitical risks in Asia could impact Japanese markets.
- Dividend yields for Japanese equities tend to be lower than some other developed markets.
RSI data unavailable or insufficient history.
Monthly Returns (%)
| Year |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
| 2026 |
+6.2%
|
+7.8%
|
-8.6%
|
+5.5%
|
+4.3%
|
+0.9%
|
-0.9%
|
+3.8%
|
+1.6%
|
+1.5%
|
-
|
-
|
| 2025 |
+1.8%
|
+0.2%
|
+0.1%
|
+4.2%
|
+3.8%
|
+2.0%
|
-1.8%
|
+6.3%
|
+2.5%
|
+4.0%
|
-0.5%
|
-1.5%
|
| 2024 |
+3.2%
|
+4.4%
|
+3.2%
|
-5.7%
|
+2.5%
|
-0.3%
|
+4.0%
|
+1.4%
|
-0.6%
|
-4.9%
|
+2.4%
|
-2.2%
|
| 2023 |
+7.8%
|
-4.7%
|
+4.9%
|
+0.3%
|
+0.8%
|
+5.1%
|
+2.5%
|
-2.8%
|
-2.2%
|
-2.2%
|
+6.2%
|
+3.9%
|
| 2022 |
-4.3%
|
-1.8%
|
-2.1%
|
-8.1%
|
+1.7%
|
-7.4%
|
+6.3%
|
-4.6%
|
-8.8%
|
+2.3%
|
+11.6%
|
-2.2%
|
| 2021 |
-0.8%
|
+1.8%
|
+0.4%
|
-1.6%
|
+1.7%
|
-0.8%
|
-0.6%
|
+1.9%
|
+2.7%
|
-2.6%
|
-3.0%
|
+2.3%
|
| 2020 |
-2.5%
|
-8.3%
|
-6.7%
|
+4.8%
|
+7.1%
|
-0.1%
|
-1.1%
|
+6.8%
|
+1.8%
|
-1.4%
|
+10.6%
|
+5.3%
|
| 2019 |
+7.1%
|
+0.1%
|
+0.7%
|
+1.3%
|
-4.9%
|
+4.5%
|
-0.4%
|
-0.8%
|
+5.2%
|
+3.4%
|
+1.3%
|
+0.9%
|
| 2018 |
+5.0%
|
-3.0%
|
-0.6%
|
-0.1%
|
-1.5%
|
-2.3%
|
+1.1%
|
-0.5%
|
+3.5%
|
-8.9%
|
+0.9%
|
-7.7%
|
| 2017 |
+3.5%
|
+1.3%
|
+0.5%
|
+0.7%
|
+2.8%
|
+1.3%
|
+2.1%
|
-0.1%
|
+1.8%
|
+5.3%
|
+2.1%
|
+0.7%
|
< -5%
-5% to -2%
-2% to 0%
0%
0% to +2%
+2% to +5%
> +5%
Top Holdings (by weight)
| Symbol |
Company Name |
Weight |
No holdings data available.
Related ETFs: EWJ vs Peers
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.
Investment Strategy
EWJ tracks the MSCI Japan Index, which uses a market capitalization weighting methodology to represent approximately 85% of the Japanese equity universe. The index includes large and mid-cap stocks across all sectors of the Japanese economy. The fund holds physical securities (rather than using derivatives) and is rebalanced quarterly to maintain alignment with the index composition. As a passively managed ETF, EWJ seeks to replicate index performance rather than outperform it.
Frequently Asked Questions
Does EWJ hedge against currency fluctuations?
No, EWJ provides unhedged exposure to Japanese equities, meaning the fund's value in non-yen terms will fluctuate with currency movements.
What sectors are most represented in EWJ?
As of recent holdings, EWJ has significant exposure to industrials (24%), consumer discretionary (21%), and information technology (14%), reflecting Japan's economic composition.
How often does EWJ rebalance its holdings?
EWJ rebalances quarterly to match changes in the MSCI Japan Index composition, with additional adjustments for corporate actions as needed.
Is EWJ suitable for dividend investors?
Japanese equities generally offer lower dividend yields than some other developed markets, so EWJ may not be ideal for investors prioritizing income generation.
How has EWJ performed compared to the S&P 500?
Japanese equities have historically shown lower correlation to U.S. markets, with periods of both underperformance and outperformance versus the S&P 500, highlighting their diversification benefits.
Industry Overview
The iShares MSCI Japan ETF (EWJ) provides exposure to Japan's equity market, the third largest in the world by market capitalization. Japan's market is known for its globally competitive companies in automotive, technology, and industrial sectors, though it has faced challenges with demographic trends and deflationary pressures. Investing in Japanese equities through EWJ offers exposure to unique corporate governance reforms ('Abenomics') and potential currency diversification benefits. The Japanese market often behaves differently than Western markets, providing portfolio diversification potential.
Alternative Comparison
Compared to DXJ (WisdomTree Japan Hedged Equity Fund), EWJ offers unhedged exposure to Japanese equities, meaning investors bear currency risk. DBJP (Xtrackers MSCI Japan Hedged Equity ETF) similarly hedges yen exposure, while EWJ provides pure equity exposure. For investors seeking small-cap exposure, SCJ (iShares MSCI Japan Small-Cap ETF) complements EWJ's large/mid-cap focus. EWJ's 0.50% expense ratio is competitive among Japan-focused ETFs, though some hedged alternatives carry slightly higher fees.
Issuer Overview
EWJ is issued by iShares, the ETF arm of BlackRock, the world's largest asset manager. iShares is a leading provider of index-tracking ETFs with over $2 trillion in global ETF assets under management. The firm is known for its extensive product lineup, liquidity, and tight tracking of underlying indices. BlackRock's scale allows it to offer competitive expense ratios across its ETF lineup.
Conclusion
EWJ remains a core holding for investors seeking broad, liquid exposure to Japanese equities. While currency risk and Japan's unique economic challenges present considerations, the fund offers efficient access to one of the world's most important developed markets. The ETF's size, liquidity, and straightforward index-tracking approach make it suitable for both tactical allocations and long-term portfolio diversification.
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