What does an ETF's expense ratio measure and why does a fee difference matter over time?

An ETF's expense ratio is the annual fee charged to manage the fund, expressed as a percentage of assets. A lower ratio means a smaller portion of your investment is deducted each year, leaving more of the return to compound. For example, EWJ has an expense ratio of 0.49%, while EWY has a higher expense ratio of 0.59%, meaning EWJ costs 0.10 percentage points less to hold annually.

What does net assets indicate about an exchange-traded fund and how does liquidity relate to fund size?

Net assets represent the total market value of securities held by an ETF. Generally, funds with larger net assets, like EWJ with $23.1 billion and EWY with $26.3 billion, may offer better liquidity, making it easier to buy or sell shares without affecting the price significantly. Larger asset bases can also support more stable operations.

What is a dividend yield and what does it tell investors about a fund?

A dividend yield shows annual dividends relative to the ETF's price. It's a measure of income generation rather than capital gains. EWJ has a dividend yield of 3.62%, indicating a relatively high income, whereas EWY yields 1.08%. The yield does not guarantee future payouts.

What is the difference between tracking an index and holding a basket of stocks?

Most ETFs track an index, such as a specific country's benchmark, which helps the fund mirror market performance. However, this may involve different methods of replication, such as buying every stock in the index or sampling. EWJ and EWY both track indexes, which may not be available.

Why do fund prospectuses and data sources sometimes omit top holdings and sector weights?

Some ETFs do not publish top holdings or sector weights, as these may be dynamic or restricted to specific disclosures. In this instance, neither EWJ nor EWY makes these details available.

How do the expense ratios of EWJ and EWY compare and what does the fee difference mean in dollar terms?

EWJ has an expense ratio of 0.49%, while EWY has a ratio of 0.59%, a difference of 0.10 percentage points. On a hypothetical $10,000 investment, this translates to a $10 difference in annual fees.

Is a fund with a lower expense ratio always the better choice?

A lower expense ratio can preserve more of your return, but it's not the only factor. EWJ has a lower expense ratio (0.49%) compared to EWY (0.59%). However, investors should also consider fund performance, liquidity, and underlying market trends.

How do the inception dates of EWJ and EWY affect an investor's confidence in these funds?

EWJ was launched on March 12, 1996, and EWY on May 9, 2000. EWJ has a longer historical record. A longer track record can help investors gauge how each fund has performed over various economic cycles.

Can investors expect the same dividend payout frequency for EWJ and EWY?

Many ETFs, including EWJ and EWY, pay dividends quarterly, but the actual distribution schedule depends on the underlying holdings and fund policy.

What does an ETF's dividend yield tell me about how distributions are made?

A dividend yield is based on the last 12 months of distributions. EWJ's yield is 3.62%, while EWY's is 1.08%. This suggests EWJ currently offers a higher relative payout, but yields can change as underlying holdings' dividends vary.

What regions or markets do EWJ and EWY each track?

EWJ is a Japan Stock ETF, meaning it tracks Japanese equities. EWY is a Focused Region ETF targeting the South Korean equity market.

How can I use comparison tools to help me understand ETFs?

Comparison tools allow you to review key metrics like fees, yields, and fund size for multiple ETFs side by side. The information shown for EWJ and EWY is not financial advice; it’s designed for educational purposes to support your own analysis.

EWJ vs EWY

Two funds, one decision: we compare cost, performance and what each ETF actually holds in October 2026.

Compare iShares MSCI Japan ETF (EWJ) and iShares South Korea MSCI Capped ETF (EWY). Review fees, holdings, dividends, and how each fund tracks its respective market. EWJ charges 0.49% and yields 3.62%; EWY charges 0.59% and yields 1.08%. Data for holdings and sector weights is not available. Educational content, not financial advice.

Compare iShares MSCI Japan ETF (EWJ) and iShares South Korea MSCI Capped ETF (EWY). Review fees, holdings, dividends, and how each fund tracks its respective market. EWJ charges 0.49% and yields 3.62%...

Fund Snapshot

Key Fund Metrics

EWJ

Metric

EWY

0.49%

Expense Ratio

0.59%

3.62%

Dividend Yield

1.08%

$23.15B

Net Assets

$26.29B

174

Holdings

89

Mar 12, 1996

Inception Date

May 9, 2000

–

Index Tracked

–

Japan Stock

Fund Category

Focused Region

EWJ costs about $10.00 less per year for every $10,000 invested.

Shared Top Holdings

These funds do not share any of their top holdings.

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EWJ vs EWJV

Compare EWJ and EWJV on expense ratios and yields. EWJ costs 0.49%, while EWJV is 0.15%. Review dividend data and net assets for these iShares funds.

EWJ vs FLJP

Compare EWJ and FLJP. EWJ has 0.49% fees, 3.62% yield; FLJP has 0.09% fees, 4.06% yield. Holdings and sectors not available for either fund.

Investment Analysis

EWJ

Pros

Assets of 23.1 billion pounds indicate substantial scale and liquidity.
Dividend yield of 3.62% offers a meaningful income stream for investors.
Inception date of March 12, 1996, demonstrates a long established track record.

Considerations

Expense ratio of 0.49% is relatively high for a developed market equity ETF.
Index tracked is not available, obscuring transparency of the replication method.
Sector weights are not available, preventing assessment of concentration or diversification.

EWY

Pros

Net assets of 26.3 billion pounds reflect a large and liquid fund.
Inception date of May 9, 2000, provides a substantial historical record.
Focused region category allows targeted exposure to the South Korean equity market.

Considerations

Expense ratio of 0.59% exceeds typical costs for broad market ETFs.
Dividend yield of 1.08% is low compared with many global equity funds.
Index tracked is not available, limiting clarity on benchmark methodology.

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About EWJ and EWY

EWJ (EWJ)

EWY (EWY)

iShares MSCI Capped ETF (ticker: EWY) offers investors passive exposure to a broad basket of South Korean large- and mid-cap equities by tracking a capped MSCI Korea index. The ETF provides an efficient way to gain diversified access to Korea’s economy, which is skewed towards technology, semiconductors, consumer electronics and export-oriented industries. Investors should note currency risk (South Korean won movements vs their base currency), concentration risk in a few dominant sectors and geopolitical sensitivity tied to the Korean peninsula. As an exchange-traded fund, EWY trades like a share, typically providing intraday liquidity, but like all equity investments its value can fall as well as rise. Expense ratios, tracking error and liquidity are practical considerations — check the fund factsheet before investing. This information is educational only and not personalised advice; suitability depends on an investor’s goals, time horizon and risk tolerance.

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EWJ vs EWY

Fund Snapshot

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EWJ vs EWJV

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Investment Analysis

EWJ

Pros

Considerations

EWY

Pros

Considerations

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Frequently asked questions

Fund Snapshot

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Corporate Governance Reform Japan Outlook 2025

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EWJ vs EWJV

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