ETF Versus

EWJ vs VEA

iShares MSCI Japan ETF vs Vanguard FTSE Developed Markets Index Fund ETF Shares

Last updated: 2026-04-02

EWJ

iShares MSCI Japan ETF (EWJ) is an exchange-traded fund that provides exposure to japan equity securities. It charges an above-average expense ratio of 0.49%. The fund offers a high dividend yield of 4.22%. Launched in 1996, the fund has a 30-year track record.

AUM: $18.0B ER: 0.49% Yield: 4.22% Since: Mar 12, 1996
VEA Vanguard

Vanguard FTSE Developed Markets Index Fund ETF Shares (VEA) is an exchange-traded fund issued by Vanguard that provides exposure to equities in developed international markets outside the U.S.. It charges a very low expense ratio of 0.03%. The fund offers an attractive dividend yield of 2.88%. Launched in 2007, the fund has a 19-year track record.

AUM: $198.8B ER: 0.03% Yield: 2.88% Since: Jul 20, 2007

Quick Verdict

VEA is significantly cheaper at 0.03% vs 0.49% expense ratio, saving you approximately $900 per $10,000 invested over 10 years. Both funds have delivered similar 1-year returns (26.8% vs 27.7%), tracking closely. Income investors may prefer EWJ for its higher yield (4.2% vs 2.9%).

Key Metrics

Metric EWJ VEA
Expense Ratio 0.49% 0.03%
Dividend Yield 4.2% 2.9%
Fund Family N/A Vanguard
Category Japan Equity International Developed

Performance Chart

Indexed to 100 at start (5-year comparison)

65 80 95 110 125 140 2021-04 2022-06 2023-09 2024-12 2026-04
EWJ +23.6%
VEA +29.0%

Performance Comparison

Period EWJ VEA Difference
1 Month -4.12% -5.61% +1.49%
3 Months +6.33% +3.07% +3.26%
6 Months +5.75% +6.68% -0.93%
YTD +6.33% +3.07% +3.26%
1 Year +26.80% +27.70% -0.90%
3 Years +46.68% +43.04% +3.64%
5 Years +23.58% +28.99% -5.41%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period EWJ Fees VEA Fees You Save
$10.000 10 years $960 $60 $900
$10.000 20 years $4.052 $258 $3.794
$10.000 30 years $12.832 $835 $11.997
$50.000 10 years $4.799 $299 $4.499
$50.000 30 years $64.162 $4.176 $59.986
$100.000 30 years $128.324 $8.352 $119.972

Risk Metrics

Based on 5 years of daily returns

Metric EWJ VEA
Annualized Volatility 18.3% 16.4%
Max Drawdown -34.6% -32.3%
Sharpe Ratio 0.08 0.12

Dividend Comparison

Metric EWJ VEA
Annual Dividend (per share) $3.65 $1.88
Dividend Yield 4.22% 2.88%
Distribution Frequency Semi-Annual or Annual Quarterly

Top Holdings

1 of top 9 holdings overlap (11% overlap in top holdings)

EWJ Top Holdings

NameWeight
Toyota Motor Corporation!tyo/72034.27%
Mitsubishi UFJ Financial Group, Inc.!tyo/83064.05%
Hitachi, Ltd.!tyo/65012.86%
Sony Group Corporation!tyo/67582.61%
Sumitomo Mitsui Financial Group, Inc.!tyo/83162.54%
Mitsubishi Corporation!tyo/80582.46%
Tokyo Electron Limited!tyo/80352.33%
Advantest Corporation!tyo/68572.23%
Mitsui & Co., Ltd.!tyo/80312.14%
Mizuho Financial Group, Inc.!tyo/84112.10%

VEA Top Holdings

NameWeight
Samsung Electronics Co., Ltd.!krx/0059302.18%
ASML Holding N.V.!ams/ASML1.77%
SK hynix Inc.!krx/0006601.24%
Roche Holding AGROC1.L1.03%
Novartis AG!swx/NOVN1.00%
HSBC Holdings plc!lon/HSBA0.99%
AstraZeneca PLC!lon/AZN0.98%
Nestlé S.A.!swx/NESN0.86%
Toyota Motor Corporation!tyo/72030.80%

Which One Should You Choose?

Choose VEA if...

you want the lowest fees and plan to buy and hold long-term. Over decades, the expense ratio difference compounds significantly.

Choose EWJ if...

you prioritize dividend income and want higher regular distributions from your portfolio.

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