iShares MSCI Japan ETF (EWJ): Complete Beginner's Guide

What is iShares MSCI Japan ETF?

EWJ is the largest and most popular ETF for investing in Japanese stocks, covering hundreds of companies across the full spectrum of Japan's economy. It holds major names in automotive, electronics, industrials, and financial services. This fund is the go-to choice for investors who want straightforward, diversified access to the world's third-largest economy.

EWJ is managed by BlackRock and has been available since 1996. With $14.0B in assets under management, it's a well-established fund with strong institutional backing. The fund charges an expense ratio of 0.50%, which means for every $10,000 you invest, you pay approximately $50 per year in management fees.

EWJ at a Glance — Key Metrics

Top 10 Holdings in EWJ

EWJ holds 225 different securities. Here are the largest positions that make up the core of this fund:

EWJ Performance History

Here's how EWJ has performed over different time periods. Remember that past performance doesn't guarantee future results, but it gives you a sense of the fund's track record:

Beginner Suitability Score: 9/10

Our proprietary Beginner Suitability Score evaluates ETFs based on five factors that matter most to new investors: fees, volatility, diversification, dividend history, and track record length.

EWJ scores 9/10 because it has very low fees, shows lower-than-average volatility, offers broad diversification across 225 holdings, and has been available since 1996, giving it a proven track record.

How to Buy EWJ — Step by Step

1. Open a brokerage account — We recommend Fidelity, Charles Schwab, or Vanguard for ETF investing. All offer $0 commissions on ETF trades.
2. Fund your account — Transfer money from your bank. You can start with as little as $1 if your broker offers fractional shares.
3. Search for "EWJ" — Use the search bar in your brokerage platform to find iShares MSCI Japan ETF.
4. Place your order — Choose "Market Order" for simplicity or "Limit Order" if you want to set a specific price. Enter how many shares (or dollar amount) you want to buy.
5. Set up automatic investing — Most brokers let you schedule recurring purchases (e.g., $100/month on the 1st). This is dollar cost averaging in action.

EWJ Sector Allocation

Here's how EWJ distributes its investments across different sectors of the economy:

Dollar Cost Averaging Into EWJ

Here's what consistent monthly investing could look like over time, assuming an average annual return of 8% (approximate historical stock market average):

*Projections assume 8% average annual return with monthly compounding. Actual returns will vary. Past performance doesn't guarantee future results.

Fee impact: With EWJ's expense ratio of 0.50%, a $10,000 investment would lose approximately $4,131 to fees over 20 years compared to a zero-fee investment. This is significant — consider whether the fund's strategy justifies these costs.

Pros and Cons of EWJ

EWJ vs Similar ETFs

See how EWJ stacks up against similar funds:

Frequently Asked Questions