EWJ vs ITM Fund Comparison

A comparison between EWJ and ITM based on their expense ratio, growth, holdings and how well they match their benchmark performance.

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Minafi's Take on EWJ vs ITM

Here's an in depth look at the differences between iShares MSCI Japan ETF ($EWJ) and VanEck Vectors AMT-Free Intermediate Municipal Index ETF ($ITM).

To start off, here's a look at the basics of each fund. Keep an eye on the FI Score. That's a custom score from 0 to 100 that we generate based on how good this fund is for the casual investor. Most investors only need a handful of total funds in their portfolio. The higher the score, the more likely this is one of those few. Score alone isn't enough! Keep reading on to see how different (or perhaps similar) these two funds are.

69% FI Score
  • ewj
  • ETF
  • International Stocks
  • Japan Stock

iShares MSCI Japan ETF

Expenses: 0.49% (Better than 0% of similar funds)

This is an OK choice for a Japan Stock International Stocks fund. See why »

79% FI Score
  • itm
  • ETF
  • Bond
  • Municipal Bond

VanEck Vectors AMT-Free Intermediate Municipal Index ETF

Expenses: 0.24% (Better than 1% of similar funds)

This is an OK choice for a Municipal Bond Bond fund. See why »

Both $EWJ and $ITM are categorized as ETFs. ETFs have an added bonus over mutual funds of being more widely available. Mutual funds are often limited to only the issuing investment brokerage. Since these are both ETFs, you may be able to find these at a wider number of investment apps and websites.

The biggest disadvantage of ETFs is that some platforms only allow you to purchase ETFs in whole shares. So if an ETF is going for $75, you may need to invest in increments of $75. Most 401(k)'s allow for investing down to the penny, but you'll want to verify your platform allows for "fractional ETF Shares".

To learn more about the difference between these two, you can read about the difference between ETFs and Mutual Funds.

When evaluating a fund, the first things I look at are:

  • What it invests in
  • How much it charges in fees
  • How large the fund is

Let's look into these criteria one by one and see if either of these funds stands out.

Fund Holdings Comparison

Minafi's FI Score algorithm takes into account the category and market. The more niche a fund is, the lower the score. This doesn't mean it's a worse fund, but it does mean you should stop and make sure this a fund you need to diversify your portfolio.

EWJ ITM
Market Score 9.7 /10 7.2 /10
Category Score 5.0 /10 8.0 /10
Total 14.7 15.2

A score of 10 means this is a solid market and category that almost every investor will want to have investments in. The lower the score, the more specific the investment. These scores are based on when most investors would add these funds to their portfolio. A score of 10 means that this fund (or one like it) belongs in a three-fund portfolio. The lower the score, the farther down in your portfolio a fund would go.

Winner: $ITM

Fee Comparison

Fees are one of the biggest killers of portfolio growth. The difference between a 2% fee and a 0.04% fee over 30 years can result in your portfolio having half the total value!

If you're just getting started investing and learning how fees impact your portfolio, I'd encourage you to read through my free investment course (specifically '2.2 - All About Fees') where I go over all the different types of fees you can be charged and how to lower them.

For these two funds, EWJ has an expense ratio of 0.49% while ITM has an expense ratio of 0.24%.

Winner: $ITM

Fund Size Comparison

One place these two funds differ is in their total assets under management. This is a good indication of how many other investors trust this fund. A large fund by itself doesn't mean it's a good fund, but it is one thing to consider when figuring out how to choose the right fund.

In the case of these two funds, EWJ is a large fund with 9.54 Billion in assets under management. ITM, on the other hand, is a medium fund with 1.6 Billion in assets under management.

Winner: $EWJ, iShares MSCI Japan ETF

Which Should You Choose? EWJ or ITM?

Comparing these two funds isn't an apples to apples comparison. EWJ is a International Stocks Japan Stock fund, while ITM is a Bond Municipal Bond fund.

If you're aiming to build a diversified, low-fee, tax-optimized portfolio you likely won't be choosing between these two funds since they're different enough.

Running both of these funds through Minafi's FI Score algorithm, gives EWJ a score of 69 and ITM a score of 79.

Winner: Neither, I'd research more funds if you're looking to invest for retirement.

$EWJ

iShares MSCI Japan ETF

69

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Ratings
Rating Type Rating
Diversification Score 8 /10
Expense Ratio Score 5 /10
Expense Rating 5 /10
Market Score 10 /10
Category Score 5 /10
Overview
Overview Details
Fund Type ETF
Inception Date Mar-12-1996
Exchange NYSE ARCA
Expense Ratio 0.490%
Net Assets 9.54 Billion
Yield 2.17%
Holdings
Description Info
Market International Stocks
Category Japan Stock
Sectors
  • Basic Materials 5.09%
  • Communication Services 8.93%
  • Consumer Cyclicals 14.92%
  • Consumer Defensive 7.93%
  • Energy 1.44%
  • Financial Services 9.50%
  • Healthcare 11.85%
  • Industrials 20.80%
  • Real Estate 3.74%
  • Technology 14.19%
  • Utilities 1.60%
Regions
  • Japan 100.00%

$ITM

VanEck Vectors AMT-Free Intermediate Municipal Index ETF

79

Read More
Ratings
Rating Type Rating
Expense Ratio Score 10 /10
Expense Rating 8 /10
Market Score 7 /10
Category Score 8 /10
Overview
Overview Details
Fund Type ETF
Inception Date Dec-4-2007
Exchange NYSE ARCA
Expense Ratio 0.240%
Net Assets 1.6 Billion
Yield 2.16%
Holdings
Description Info
Market Bond
Category Municipal Bond
Sectors
  • Basic Materials 0.00%
  • Communication Services 0.00%
  • Consumer Cyclicals 0.00%
  • Consumer Defensive 0.00%
  • Energy 0.00%
  • Financial Services 0.00%
  • Healthcare 0.00%
  • Industrials 0.00%
  • Real Estate 0.00%
  • Technology 0.00%
  • Utilities 0.00%

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