AAXJ vs. SHLD

Last updated Jun 14, 2026

AAXJ (iShares MSCI All Country Asia ex-Japan ETF) and SHLD (Global X Defense Tech ETF) are both exchange-traded funds - AAXJ is a Asia Pacific Equities fund tracking the MSCI All Country Asia ex Japan Index, while SHLD is a Aerospace & Defense fund tracking the Global X Defense Tech Index. Both are passively managed. Over the past year, AAXJ returned 48.69% vs 8.26% for SHLD. At a 0.35 correlation, their price movements are largely independent. AAXJ charges 0.68%/yr vs 0.50%/yr for SHLD.

Performance

AAXJ vs. SHLD - 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 Global X Defense Tech ETF (SHLD). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, AAXJ achieves a 26.46% return, which is significantly higher than SHLD's -1.50% return.

AAXJ

• 1D: 0.46%
• 1M: 0.61%
• YTD: 26.46%
• 6M: 29.76%
• 1Y: 48.69%
• 3Y*: 22.11%
• 5Y*: 6.41%
• 10Y*: 10.34%

SHLD

• 1D: -2.04%
• 1M: -0.44%
• YTD: -1.50%
• 6M: -1.03%
• 1Y: 8.26%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

AAXJ vs. SHLD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
AAXJ iShares MSCI All Country Asia ex-Japan ETF	26.46%	31.53%	10.41%	3.47%
SHLD Global X Defense Tech ETF	-1.50%	74.16%	35.03%	12.89%

Correlation

The correlation between AAXJ and SHLD is 0.35, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.35
Correlation (All Time) Calculated using the full available price history since Sep 13, 2023	0.35

AAXJ vs. SHLD - Sectors Allocation Comparison

Sectors	AAXJ	SHLD
Technology	49.4%	12.2%
Financial Services	15.8%	-
Consumer Cyclical	8.9%	-
Industrials	7.3%	87.8%
Communication Services	5.9%	-
Basic Materials	3.1%	-
Healthcare	2.6%	-
Energy	2.2%	-
Consumer Defensive	2.0%	-
Utilities	1.6%	-
Real Estate	1.4%	-

Return for Risk

AAXJ vs. SHLD — Risk / Return Rank

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

AAXJ

AAXJ Risk / Return Rank: 75
AAXJ Sharpe Ratio Rank: 76
AAXJ Sortino Ratio Rank: 70
AAXJ Omega Ratio Rank: 78
AAXJ Calmar Ratio Rank: 76
AAXJ Martin Ratio Rank: 76

SHLD

SHLD Risk / Return Rank: 16
SHLD Sharpe Ratio Rank: 17
SHLD Sortino Ratio Rank: 17
SHLD Omega Ratio Rank: 16
SHLD Calmar Ratio Rank: 16
SHLD Martin Ratio Rank: 16

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. SHLD - 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 Global X Defense Tech ETF (SHLD). 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	SHLD	Difference
Sharpe ratio: Return per unit of total volatility	2.11	0.43	+1.68
Sortino ratio: Return per unit of downside risk	2.73	0.78	+1.95
Omega ratio: Gain probability vs. loss probability	1.40	1.09	+0.31
Calmar ratio: Return relative to maximum drawdown	3.41	0.52	+2.89
Martin ratio: Return relative to average drawdown	12.55	1.28	+11.26

AAXJ vs. SHLD - Sharpe Ratio Comparison

The current AAXJ Sharpe Ratio is 2.11, which is higher than the SHLD Sharpe Ratio of 0.43. The chart below compares the historical Sharpe Ratios of AAXJ and SHLD, 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. SHLD - Drawdown Comparison

The maximum AAXJ drawdown since its inception was -49.37%, which is greater than SHLD's maximum drawdown of -20.10%. Use the drawdown chart below to compare losses from any high point for AAXJ and SHLD.

Drawdown Indicators

	AAXJ	SHLD	Difference
Max Drawdown Largest peak-to-trough decline	-49.37%	-20.10%	-29.27%
Max Drawdown (1Y) Largest decline over 1 year	-13.66%	-20.10%	+6.44%
Max Drawdown (3Y) Largest decline over 3 years	-19.74%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-40.64%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-44.52%	—	—
Current Drawdown Current decline from peak	-4.62%	-18.20%	+13.58%
Average Drawdown Average peak-to-trough decline	-14.01%	-3.34%	-10.67%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.71%	8.12%	-4.41%

Volatility

AAXJ vs. SHLD - Volatility Comparison

iShares MSCI All Country Asia ex-Japan ETF (AAXJ) has a higher volatility of 11.46% compared to Global X Defense Tech ETF (SHLD) at 9.05%. This indicates that AAXJ's price experiences larger fluctuations and is considered to be riskier than SHLD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	AAXJ	SHLD	Difference
Volatility (1M) Calculated over the trailing 1-month period	11.46%	9.05%	+2.41%
Volatility (6M) Calculated over the trailing 6-month period	19.71%	19.94%	-0.23%
Volatility (1Y) Calculated over the trailing 1-year period	22.12%	24.55%	-2.43%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.32%	21.29%	-0.97%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.42%	21.29%	-0.87%

AAXJ vs. SHLD - Expense Ratio Comparison

AAXJ has a 0.68% expense ratio, which is higher than SHLD's 0.50% expense ratio.

Dividends

AAXJ vs. SHLD - Dividend Comparison

AAXJ's dividend yield for the trailing twelve months is around 1.43%, more than SHLD's 0.56% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AAXJ iShares MSCI All Country Asia ex-Japan ETF	1.43%	1.81%	1.86%	1.95%	1.74%	2.21%	1.06%	1.83%	2.10%	1.99%	1.77%	2.44%
SHLD Global X Defense Tech ETF	0.56%	0.55%	0.53%	0.26%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both AAXJ and SHLD in my portfolio?

AAXJ and SHLD have a correlation of 0.35, 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 SHLD?

AAXJ has higher volatility (11.46%) compared to SHLD (9.05%). In terms of maximum drawdown, AAXJ dropped -49.37% vs SHLD's -20.10%.

Which ETF is better, AAXJ or SHLD?

On 1-year performance, AAXJ leads with 48.69% vs 8.26% for SHLD. On fees, SHLD is cheaper at 0.50% per year. On volatility, SHLD has been the lower-risk option at 9.05%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, AAXJ or SHLD?

Over the 1-year period, AAXJ has performed better with a 48.69% return vs 8.26%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, AAXJ or SHLD?

SHLD is cheaper with a 0.50% expense ratio, compared with 0.68% for AAXJ.

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

AAXJ has the higher dividend yield at 1.43%, compared with 0.56% for SHLD.

What is the main difference between AAXJ and SHLD?

AAXJ is categorized as Asia Pacific Equities, while SHLD is Aerospace & Defense. AAXJ tracks MSCI All Country Asia ex Japan Index, while SHLD tracks Global X Defense Tech Index. They also come from different issuers: iShares and Global X. Their fees differ too: 0.68% for AAXJ and 0.50% for SHLD.

Which has better risk-adjusted returns?

AAXJ currently has the higher Sharpe Ratio (2.11 vs 0.43), 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.