AAXJ vs. DXJ

Last updated Jul 14, 2026

AAXJ (iShares MSCI All Country Asia ex-Japan ETF) and DXJ (WisdomTree Japan Hedged Equity Fund) are both exchange-traded funds - AAXJ is a Asia Pacific Equities fund tracking the MSCI All Country Asia ex Japan Index, while DXJ is a Japan Equities fund tracking the WisdomTree Japan Hedged Equity Index. Both are passively managed. Over the past 10 years, AAXJ returned 8.98%/yr vs 18.62%/yr for DXJ. A 0.57 correlation means they provide meaningful diversification when combined. AAXJ charges 0.68%/yr vs 0.48%/yr for DXJ.

Performance

AAXJ vs. DXJ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares MSCI All Country Asia ex-Japan ETF (AAXJ) and WisdomTree Japan Hedged Equity Fund (DXJ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, AAXJ achieves a 20.52% return, which is significantly lower than DXJ's 22.23% return. Over the past 10 years, AAXJ has underperformed DXJ with an annualized return of 8.98%, while DXJ has yielded a comparatively higher 18.62% annualized return.

AAXJ

• 1D: -3.78%
• 1M: -4.70%
• 6M: 13.41%
• YTD: 20.52%
• 1Y: 37.36%
• 3Y*: 19.82%
• 5Y*: 5.93%
• 10Y*: 8.98%

DXJ

• 1D: -0.98%
• 1M: 2.95%
• 6M: 14.85%
• YTD: 22.23%
• 1Y: 54.82%
• 3Y*: 32.72%
• 5Y*: 27.03%
• 10Y*: 18.62%

*Multi-year figures are annualized to reflect compound growth (CAGR)

AAXJ vs. DXJ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
AAXJ iShares MSCI All Country Asia ex-Japan ETF	20.52%	31.53%	10.41%	4.79%	-20.35%	-5.73%	23.35%	17.93%	-15.04%	41.76%
DXJ WisdomTree Japan Hedged Equity Fund	22.23%	32.78%	29.83%	42.04%	5.96%	17.99%	3.94%	18.94%	-19.78%	22.81%

Correlation

The correlation between AAXJ and DXJ is 0.48, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.48
Correlation (3Y) Calculated over the trailing 3-year period	0.42
Correlation (5Y) Calculated over the trailing 5-year period	0.46
Correlation (10Y) Calculated over the trailing 10-year period	0.51
Correlation (All Time) Calculated using the full available price history since Aug 15, 2008	0.57

The correlation between AAXJ and DXJ shifts across timeframes, from 0.42 (3 years) to 0.57 (all time), reflecting how their relationship changes across market environments.

AAXJ vs. DXJ - Sectors Allocation Comparison

Sectors	AAXJ	DXJ
Technology	49.4%	13.4%
Financial Services	15.8%	18.3%
Consumer Cyclical	8.9%	15.5%
Industrials	7.3%	27.4%
Communication Services	5.9%	2.3%
Basic Materials	3.1%	8.5%
Healthcare	2.6%	6.8%
Energy	2.2%	1.7%
Consumer Defensive	2.0%	4.7%
Utilities	1.6%	0.1%
Real Estate	1.4%	-

Return for Risk

AAXJ vs. DXJ — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

AAXJ

AAXJ Risk / Return Rank: 61
AAXJ Sharpe Ratio Rank: 58
AAXJ Sortino Ratio Rank: 52
AAXJ Omega Ratio Rank: 62
AAXJ Calmar Ratio Rank: 69
AAXJ Martin Ratio Rank: 65

DXJ

DXJ Risk / Return Rank: 94
DXJ Sharpe Ratio Rank: 95
DXJ Sortino Ratio Rank: 94
DXJ Omega Ratio Rank: 94
DXJ Calmar Ratio Rank: 93
DXJ Martin Ratio Rank: 93

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

AAXJ vs. DXJ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI All Country Asia ex-Japan ETF (AAXJ) and WisdomTree Japan Hedged Equity Fund (DXJ). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	AAXJ	DXJ	Difference
Sharpe ratio: Return per unit of total volatility	1.55	3.02	-1.47
Sortino ratio: Return per unit of downside risk	2.05	3.93	-1.88
Omega ratio: Gain probability vs. loss probability	1.30	1.54	-0.24
Calmar ratio: Return relative to maximum drawdown	2.75	5.02	-2.27
Martin ratio: Return relative to average drawdown	9.31	19.10	-9.79

AAXJ vs. DXJ - Sharpe Ratio Comparison

The current AAXJ Sharpe Ratio is 1.55, which is lower than the DXJ Sharpe Ratio of 3.02. The chart below compares the historical Sharpe Ratios of AAXJ and DXJ, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

AAXJ vs. DXJ - Drawdown Comparison

The maximum AAXJ drawdown since its inception was -49.37%, roughly equal to the maximum DXJ drawdown of -49.63%. Use the drawdown chart below to compare losses from any high point for AAXJ and DXJ.

Drawdown Indicators

	AAXJ	DXJ	Difference
Max Drawdown Largest peak-to-trough decline	-49.37%	-49.63%	+0.26%
Max Drawdown (1Y) Largest decline over 1 year	-13.66%	-10.98%	-2.68%
Max Drawdown (3Y) Largest decline over 3 years	-19.74%	-22.19%	+2.45%
Max Drawdown (5Y) Largest decline over 5 years	-38.91%	-22.19%	-16.72%
Max Drawdown (10Y) Largest decline over 10 years	-44.52%	-39.14%	-5.38%
Current Drawdown Current decline from peak	-9.97%	-2.62%	-7.35%
Average Drawdown Average peak-to-trough decline	-13.98%	-14.27%	+0.29%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.02%	2.88%	+1.14%

Volatility

AAXJ vs. DXJ - Volatility Comparison

iShares MSCI All Country Asia ex-Japan ETF (AAXJ) has a higher volatility of 11.97% compared to WisdomTree Japan Hedged Equity Fund (DXJ) at 6.56%. This indicates that AAXJ's price experiences larger fluctuations and is considered to be riskier than DXJ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	AAXJ	DXJ	Difference
Volatility (1M) Calculated over the trailing 1-month period	11.97%	6.56%	+5.41%
Volatility (6M) Calculated over the trailing 6-month period	22.14%	14.47%	+7.67%
Volatility (1Y) Calculated over the trailing 1-year period	24.32%	18.30%	+6.02%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.82%	19.06%	+1.76%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.58%	19.93%	+0.65%

AAXJ vs. DXJ - Expense Ratio Comparison

AAXJ has a 0.68% expense ratio, which is higher than DXJ's 0.48% expense ratio.

Dividends

AAXJ vs. DXJ - Dividend Comparison

AAXJ's dividend yield for the trailing twelve months is around 1.38%, more than DXJ's 0.96% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AAXJ iShares MSCI All Country Asia ex-Japan ETF	1.38%	1.81%	1.86%	1.95%	1.74%	2.21%	1.06%	1.83%	2.10%	1.99%	1.77%	2.44%
DXJ WisdomTree Japan Hedged Equity Fund	0.96%	1.29%	3.48%	3.44%	3.02%	2.64%	2.53%	2.47%	2.92%	2.30%	1.98%	5.95%

Frequently Asked Questions

Can I hold both AAXJ and DXJ in my portfolio?

AAXJ and DXJ have a correlation of 0.48, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, AAXJ or DXJ?

AAXJ has higher volatility (11.97%) compared to DXJ (6.56%). In terms of maximum drawdown, AAXJ dropped -49.37% vs DXJ's -49.63%.

Which ETF is better, AAXJ or DXJ?

On 10-year performance, DXJ leads with 18.62% vs 8.98% for AAXJ. On fees, DXJ is cheaper at 0.48% per year. On volatility, DXJ has been the lower-risk option at 6.56%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, AAXJ or DXJ?

Over the 10-year period, DXJ has performed better with a 18.62% return vs 8.98%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, AAXJ or DXJ?

DXJ is cheaper with a 0.48% expense ratio, compared with 0.68% for AAXJ.

Which ETF pays a higher dividend yield, AAXJ or DXJ?

AAXJ has the higher dividend yield at 1.38%, compared with 0.96% for DXJ.

What is the main difference between AAXJ and DXJ?

AAXJ is categorized as Asia Pacific Equities, while DXJ is Japan Equities. AAXJ tracks MSCI All Country Asia ex Japan Index, while DXJ tracks WisdomTree Japan Hedged Equity Index. They also come from different issuers: iShares and WisdomTree. Their fees differ too: 0.68% for AAXJ and 0.48% for DXJ.

Which has better risk-adjusted returns?

DXJ currently has the higher Sharpe Ratio (3.02 vs 1.55), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.