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

EWJ VS EEM

Exchange-Traded Funds (ETFs) have gained popularity as versatile investment tools offering diversified exposure across different markets. In this article, we'll conduct a thorough comparison between two prominent ETFs: EWJ (iShares MSCI Japan ETF) and EEM (iShares MSCI Emerging Markets ETF). We will delve into essential aspects such as ticker symbols, full names, issuers, sectors, top holdings, capitalization, strategy, tracking methods, and exposure.

EWJ VS EEM: Overview

EWJ and EEM are both ETFs, but they focus on distinct regions and markets. EWJ provides exposure to the Japanese equity market, while EEM is designed to track the performance of emerging market equities. Understanding the differences in their geographical focus is crucial for investors looking to diversify their portfolios across global markets.

EWJ VS EEM: Sectors and Top Holdings

EWJ primarily invests in Japanese companies, including well-known corporations like Toyota, Sony, and SoftBank Group. In contrast, EEM comprises holdings from a diverse set of emerging market countries such as China, Taiwan, and Brazil. Exploring the sectors and top holdings of these ETFs can help investors gauge their potential risk and return profiles based on regional market dynamics.

EWJ overlap EWJ VS EEMEWJ overlap EWJ VS EEM

EWJ VS EEM: Capitalization and Strategy

EWJ has a substantial asset under management (AUM) due to Japan's position as one of the world's largest economies. Its strategy revolves around tracking the performance of Japanese equities, which can be influenced by factors unique to Japan. EEM, with its focus on emerging markets, offers a different investment strategy with potentially higher growth prospects but also increased volatility. Understanding the capitalization and strategy of these ETFs is crucial for aligning investments with specific financial goals and risk tolerance.

EWJ VS EEM: Tracking and Exposure

EWJ aims to mirror the performance of the MSCI Japan Index by holding Japanese stocks directly. EEM, on the other hand, seeks to replicate the MSCI Emerging Markets Index by investing in a diverse basket of stocks from multiple emerging market countries. These different tracking and exposure methods result in varying risk and return profiles. Investors should consider their investment horizon and risk tolerance when deciding between these two ETFs.

Conclusion

EWJ and EEM are valuable tools for investors seeking exposure to different regions of the world. Whether you are interested in the stable, developed economy of Japan or the growth potential of emerging markets, these ETFs offer distinct opportunities. To gain deeper insights into their holdings, correlations, overlaps, and other relevant information, consider using ETF insider—an user-friendly app that provides comprehensive details on various financial instruments.

Disclaimer: This article does not provide any investment advisory services.

EWJ ETF issuer
EWJ ETF official page

EEM quote and analysis

Discover the top holdings, correlations, and overlaps of ETFs using our visualization tool.
Our app allows you to build and track your portfolio.
To learn more about the EEM iShares MSCI Emerging Markets ETF, access our dedicated page now.

Get started