IWM VS EWJ
4 min read
By Beqa Bumbeishvili, ETF Insider

IWM VS EWJ

Exchange-Traded Funds (ETFs) have transformed the landscape of modern investing, offering investors exposure to diverse sectors and asset classes in a convenient and cost-effective manner. In this article, we will conduct an in-depth comparison of two prominent ETFs: IWM (iShares Russell 2000 ETF) and EWJ (iShares MSCI Japan ETF). We'll delve into the world of ETF tickers, full names, issuers, sectors, top holdings, capitalization, investment strategy, tracking methods, and exposure.

IWM & EWJ: Overview

IWM and EWJ are two ETFs that cater to distinct investment objectives within different geographic regions. While IWM is designed to track the performance of small-cap U.S. companies through the Russell 2000 Index, EWJ focuses on providing exposure to the Japanese equity market through the MSCI Japan Index. Let's explore the nuances of these ETFs to better understand their potential benefits and risks.

IWM & EWJ: Sectors and Top Holdings

The IWM ETF offers investors a slice of the diverse U.S. small-cap market, encompassing sectors ranging from technology to healthcare. Its top holdings include companies like Tesla, Moderna, and Square. On the other hand, the EWJ ETF concentrates on the Japanese equity landscape, with holdings such as Toyota, Sony, and SoftBank Group. A clear understanding of the sectors and top holdings of these ETFs enables investors to align their portfolios with their investment goals and risk appetite.

IWM  overlap IWM VS EWJIWM overlap IWM VS EWJ

IWM & EWJ: Capitalization and Investment Strategy

The IWM ETF boasts a substantial asset under management (AUM), signifying its popularity among investors seeking exposure to the performance of small-cap companies. Conversely, the EWJ ETF seeks to mirror the Japanese equity market's returns. The differences in capitalization and investment strategy between these two ETFs offer investors varying levels of risk and potential returns, requiring careful consideration based on their financial objectives.

IWM & EWJ: Tracking and Exposure

The IWM ETF aims to replicate the performance of the Russell 2000 Index, providing investors with exposure to the movements of small-cap U.S. stocks. In contrast, the EWJ ETF tracks the MSCI Japan Index, offering exposure to the Japanese equity market. Understanding the tracking methodologies and exposure provided by these ETFs is crucial for investors seeking to diversify their portfolios across different regions and market segments.

Conclusion

IWM and EWJ stand as unique investment vehicles, each targeting specific areas of the market. Investors interested in gaining insights into the intricacies of holdings, correlations, overlaps, and other critical information can turn to the ETF Insider, an invaluable tool equipped with a user-friendly app. Through this platform, investors can explore comprehensive details about these ETFs and a wide range of other financial instruments, aiding them in making informed decisions.

Disclaimer: This article is intended solely for informational purposes and does not offer investment advisory services. Investors should conduct thorough research and consult with financial professionals before making any investment decisions.

Sources:
iShares by BlackRock (www.ishares.com)
Bloomberg (www.bloomberg.com)
MSCI (www.msci.com)
Russell Investments (russellinvestments.com)

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FAQ

  • Why is IWM better than EWJ?

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

  • Does EWJ beat IWM?

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

  • Should I invest in IWM or EWJ?

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

  • Are IWM and EWJ good investments?

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

  • What is the correlation between IWM and EWJ?

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