EEM VS EWJ
3 min read
By Ron Koren, ETF Insider

EEM VS EWJ

Exchange-Traded Funds (ETFs) have become a staple in modern investment portfolios, offering diversified exposure to various sectors and asset classes. In this article, we will undertake a thorough analysis of two prominent ETFs: EEM (iShares MSCI Emerging Markets ETF) and EWJ (iShares MSCI Japan ETF). By delving into ETF tickers, full names, issuers, sectors, top holdings, capitalization, strategy, tracking, and exposure, we aim to provide valuable insights for investors.

EEM & EWJ: Overview

EEM and EWJ represent two distinct investment avenues: emerging markets and Japan, respectively. While EEM is designed to capture the performance of emerging market economies, EWJ focuses on tracking Japanese equities. This divergence in investment objectives translates into varying risks and returns, which we will delve into further in the subsequent sections.

EEM & EWJ: Sectors and Top Holdings

The EEM ETF offers exposure to a range of sectors in emerging markets, encompassing financials, technology, consumer goods, and more. EWJ, on the other hand, provides access to various sectors within the Japanese equity market, including industrial, technology, and consumer discretionary. Understanding the sectors and top holdings of each ETF aids investors in aligning their investment goals with the appropriate fund.

EEM  overlap EEM VS EWJEEM overlap EEM VS EWJ

EEM & WJ: Capitalization and Strategy

With a substantial Asset Under Management (AUM), EEM reflects investor interest in emerging markets' growth potential. On the contrary, EWJ's strategy revolves around capturing the performance of Japanese large- and mid-cap stocks. The difference in capitalization and investment strategy underscores the unique dynamics of these ETFs, influencing potential returns and risk factors.

EEM & EWJ: Tracking and Exposure

EEM aims to mirror the performance of the MSCI Emerging Markets Index, providing investors with exposure to a diverse range of economies and companies. In contrast, EWJ tracks the MSCI Japan Index, offering insight into the performance of Japanese equities. The tracking mechanisms differ, with EEM reflecting emerging market equity performance and EWJ focusing on Japanese equity performance.

Conclusion

EEM and EWJ are distinctive ETFs, each catering to specific investor preferences. For those seeking to gain deeper insights into holdings, correlations, overlaps, and other crucial aspects, ETF Insider emerges as an invaluable tool. This user-friendly app offers comprehensive information on various financial instruments, aiding investors in making informed decisions.

Disclaimer: This article is intended for informational purposes only and does not provide investment advisory services.

Sources:

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FAQ

  • Why is EEM better than EWJ?

    EEM may be considered better than EWJ for some investors due to its specific focus, offering diversification.

  • Does EWJ beat EEM?

    EWJ's performance relative to EEM will vary over time, depending on market conditions.

  • Should I invest in EEM or EWJ?

    The choice between EEM and EWJ should align with your investment goals, risk tolerance, and desired exposure.

  • Are EEM and EWJ good investments?

    Both EEM and EWJ can be suitable investments depending on individual investment strategies, goals, and risk profiles.

  • What is the correlation between EEM and EWJ?

    The correlation between EEM and EWJ can vary over time, reflecting differences in performance.