What if you invested monthly in a Japan ETF (EWJ) for 20 years?
See what a 20-year monthly plan into EWJ—large- and mid-cap Japanese stocks—would have looked like using real price data, including Japan's 'lost decades,' its later recovery, and the effect of a weaker yen.
Investment conditions
Asset · Japan ETF (EWJ)
Method · Recurring monthly investment
Period · 2006-07-01 ~ 2026-07-01
Amount · $222 / month
As of · 2026-07-01
Key metrics
These results do not reflect taxes. Based on historical data.
Risk & recovery
As important as returns. This service does not hide maximum drawdown or loss periods.
Maximum drawdown (MDD)
-32.1%
Largest drop from peak
Longest loss period
37months
Months in loss: 63
Recovery period
10months
Growth over time
Invested principal (dashed) and portfolio value (solid). Values below match the calculation.
Total invested $53,556 → Final value $120,906 (+125.8%), Maximum drawdown (MDD) -32.1%
Why this period and asset
EWJ tracks the MSCI Japan Index and is a leading Japan ETF. Japanese equities endured what is called the 'lost 30 years' after the 1989 bubble burst; the Nikkei did not reclaim its 1989 peak until 2024. The 2006–2026 window included shocks like the 2008 global financial crisis and the 2011 Tohoku earthquake, then a rebound after 2013 driven by Abenomics, massive easing, and a weaker yen. Because EWJ is a dollar-denominated ETF, however, a weaker yen can offset index gains in dollar terms—the double-edged nature of yen weakness.
Interpreting the result
This scenario highlights Japan's unusual path of long stagnation followed by recovery. On the results screen, be sure to check the maximum drawdown, the underwater period, and the recovery time. As a market that took a very long time to recover, it shows how much patience the hope that 'it will rise eventually' can demand. Monthly investing buys more units through long declines and stagnation, but yen weakness can make dollar- and won-based results diverge from the index move.
Caveats & limits
Because EWJ is dollar-denominated, yen weakness can erode dollar returns, and won conversion adds another layer. Concentrating in a single country (Japan) leaves you heavily exposed to that country's economy, policy, and demographics. The ETF's expense ratio, trading costs, and taxes also affect real performance. Past behavior does not guarantee future results, and this page does not recommend buying any specific asset.
Data sources & limits
- Price data source: Yahoo Finance / FinanceDataReader
- Collected on: 2026-07-23
- Effective trading date: 2026-07-01
- Price basis: Adjusted close (reflects dividends and stock splits)
- Trading fees and taxes are not reflected — figures are pre-tax.
- Based on historical data; does not guarantee future returns.
Frequently asked questions
With the 'lost 30 years,' is it okay to buy Japanese stocks?
This page does not recommend buying. Historically, Japan is a leading example of a market that took a very long time to reclaim its peak, which is useful for seeing directly how long the underwater and recovery periods can be on the results screen.
Does a weaker yen improve returns on Japanese stocks?
A weaker yen can help Japanese exporters and lift the index, but EWJ is dollar-denominated, so yen weakness trims dollar-based results. The index gain and the dollar/won result can diverge, so watch exchange rates too.
Over 20 years, doesn't it recover eventually?
Dollar-cost averaging buys more units during declines and stagnation, lowering your average cost, but it does not guarantee recovery. Results depend heavily on when you started, so review the underwater and recovery periods together.
Related scenarios
📋 Results are based on historical data; past returns do not guarantee future returns.
📋 This service is provided for educational purposes to help you understand investing, not as investment advice.