ETF Versus

EFA vs EWJ

iShares MSCI EAFE ETF vs iShares MSCI Japan ETF

Last updated: 2026-04-02

EFA iShares

iShares MSCI EAFE ETF (EFA) is an exchange-traded fund issued by iShares that provides exposure to equities in developed international markets outside the U.S.. It charges an above-average expense ratio of 0.32%. The fund offers an attractive dividend yield of 3.29%. Launched in 2001, the fund has a 25-year track record.

AUM: $69.1B ER: 0.32% Yield: 3.29% Since: Aug 14, 2001
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

Quick Verdict

EFA is significantly cheaper at 0.32% vs 0.49% expense ratio, saving you approximately $329 per $10,000 invested over 10 years. Over the past year, EWJ has significantly outperformed with a 26.8% return vs 20.5%. Income investors may prefer EWJ for its higher yield (4.2% vs 3.3%).

Key Metrics

Metric EFA EWJ
Expense Ratio 0.32% 0.49%
Dividend Yield 3.3% 4.2%
Fund Family iShares N/A
Category International Developed Japan Equity

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
EFA +26.5%
EWJ +23.6%

Performance Comparison

Period EFA EWJ Difference
1 Month -4.54% -4.12% -0.42%
3 Months +1.62% +6.33% -4.71%
6 Months +3.71% +5.75% -2.04%
YTD +1.62% +6.33% -4.71%
1 Year +20.48% +26.80% -6.32%
3 Years +36.79% +46.68% -9.89%
5 Years +26.46% +23.58% +2.88%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period EFA Fees EWJ Fees You Save
$10.000 10 years $631 $960 $329
$10.000 20 years $2.686 $4.052 $1.366
$10.000 30 years $8.571 $12.832 $4.262
$50.000 10 years $3.156 $4.799 $1.643
$50.000 30 years $42.854 $64.162 $21.308
$100.000 30 years $85.707 $128.324 $42.616

Risk Metrics

Based on 5 years of daily returns

Metric EFA EWJ
Annualized Volatility 16.6% 18.3%
Max Drawdown -32.4% -34.6%
Sharpe Ratio 0.10 0.08

Dividend Comparison

Metric EFA EWJ
Annual Dividend (per share) $3.25 $3.65
Dividend Yield 3.29% 4.22%
Distribution Frequency Semi-Annual or Annual Semi-Annual or Annual

Top Holdings

2 of top 10 holdings overlap (20% overlap in top holdings)

EFA Top Holdings

NameWeight
ASML Holding N.V.!ams/ASML2.54%
AstraZeneca PLC!lon/AZN1.46%
Novartis AG!swx/NOVN1.41%
Roche Holding AG!swx/ROP1.36%
HSBC Holdings plc!lon/HSBA1.36%
Shell plc!lon/SHEL1.31%
Nestlé S.A.!swx/NESN1.22%
Toyota Motor Corporation!tyo/72031.00%
Commonwealth Bank of Australia!asx/CBA0.99%
Mitsubishi UFJ Financial Group, Inc.!tyo/83060.95%

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%

Which One Should You Choose?

Choose EFA 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...

recent performance momentum matters to your strategy. Note that past performance doesn't guarantee future results.

Choose EWJ if...

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

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