iShares MSCI Japan ETF (EWJ): Complete Beginner's Guide
Last updated: March 2026 • BlackRock • Japan Equity
Expense Ratio
0.50%
AUM
$14.0B
Dividend Yield
2.00%
Inception
1996
Beginner Score
9/10
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
| Expense Ratio | 0.50% |
| Total Holdings | 225 |
| P/E Ratio | 15.0 |
| Beta | 0.85 |
| Dividend Yield | 2.00% |
| AUM | $14.0B |
| Inception Year | 1996 |
| Issuer | BlackRock |
Top 10 Holdings in EWJ
EWJ holds 225 different securities. Here are the largest positions that make up the core of this fund:
| # | Company | Ticker | Weight |
|---|---|---|---|
| 1 | Toyota Motor Corp. | 7203.T | 5.00% |
| 2 | Sony Group Corp. | 6758.T | 4.00% |
| 3 | Mitsubishi UFJ Financial | 8306.T | 3.00% |
| 4 | Keyence Corp. | 6861.T | 3.00% |
| 5 | Tokyo Electron | 8035.T | 2.80% |
| 6 | Hitachi Ltd. | 6501.T | 2.50% |
| 7 | Recruit Holdings | 6098.T | 2.20% |
| 8 | Shin-Etsu Chemical | 4063.T | 2.00% |
| 9 | Sumitomo Mitsui Financial | 8316.T | 2.00% |
| 10 | Nintendo Co. | 7974.T | 1.80% |
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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:
YTD
4.00%
1 Year
12.00%
3 Year
5.00%
5 Year
6.00%
10 Year
7.00%
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
- Open a brokerage account — We recommend Fidelity, Charles Schwab, or Vanguard for ETF investing. All offer $0 commissions on ETF trades.
- Fund your account — Transfer money from your bank. You can start with as little as $1 if your broker offers fractional shares.
- Search for "EWJ" — Use the search bar in your brokerage platform to find iShares MSCI Japan ETF.
- 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.
- 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.
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):
| Monthly | 10 Years | 20 Years | 30 Years |
|---|---|---|---|
| $100/mo | $18,417 | $59,295 | $150,030 |
| $250/mo | $46,041 | $148,237 | $375,074 |
| $500/mo | $92,083 | $296,474 | $750,148 |
*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.
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Pros and Cons of EWJ
Pros
- ✓Oldest and most liquid Japan equity ETF with nearly three decades of track record
- ✓Broad diversification across 225 stocks spanning all major Japanese industries
- ✓Japan's corporate governance reforms are unlocking shareholder value across companies
- ✓Massive AUM ensures tight spreads and efficient trading for all investor sizes
Cons
- ✗Yen currency fluctuations can significantly impact returns for US dollar investors
- ✗Japan's aging demographics pose long-term headwinds for domestic economic growth
- ✗No currency hedging built in which adds exchange rate risk to the investment
EWJ vs Similar ETFs
See how EWJ stacks up against similar funds:
Frequently Asked Questions
Is EWJ a good ETF for beginners?▾
EWJ has a Beginner Suitability Score of 9/10 on our scale. This makes it a strong choice for new investors due to its low fees and broad diversification.
What is the expense ratio of EWJ?▾
EWJ has an expense ratio of 0.50%. This means for every $10,000 you invest, you pay approximately $50 per year in fees. This is considered very low and cost-efficient.
How much money do I need to invest in EWJ?▾
You can invest in EWJ with as little as $1 through brokers that offer fractional shares (like Fidelity, Schwab, or Robinhood). There is no minimum investment required beyond the share price itself, which changes daily. Dollar cost averaging — investing a fixed amount regularly — is a popular strategy.
Does EWJ pay dividends?▾
Yes, EWJ pays dividends with a current yield of approximately 2.00%. Dividends are typically paid quarterly and can be reinvested automatically through most brokers.
What are the top holdings in EWJ?▾
The top holdings in EWJ include Toyota Motor Corp. (5.00%), Sony Group Corp. (4.00%), Mitsubishi UFJ Financial (3.00%), and more. The fund holds 225 total positions, providing broad diversification across many companies.