DDLS vs. HSCZ

Last updated Aug 2, 2026

DDLS (WisdomTree Dynamic Currency Hedged International SmallCap Equity Fund) and HSCZ (iShares Currency Hedged MSCI EAFE Small Cap ETF) are both Foreign Small & Mid Cap Equities funds - DDLS tracks the WisdomTree Dynamic Currency Hedged International SmallCap Equity Index while HSCZ tracks the MSCI EAFE Small-Cap 100% Hedged to USD Index. Both are passively managed. Over the past 10 years, DDLS returned 9.82%/yr vs 11.86%/yr for HSCZ. Their correlation of 0.83 means they have usually moved in the same direction. DDLS charges 0.48%/yr vs 0.43%/yr for HSCZ.

Performance

DDLS vs. HSCZ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in WisdomTree Dynamic Currency Hedged International SmallCap Equity Fund (DDLS) and iShares Currency Hedged MSCI EAFE Small Cap ETF (HSCZ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, DDLS achieves a 6.18% return, which is significantly lower than HSCZ's 11.33% return. Over the past 10 years, DDLS has underperformed HSCZ with an annualized return of 9.82%, while HSCZ has yielded a comparatively higher 11.86% annualized return.

DDLS

• 1D: -0.54%
• 1M: 0.38%
• 6M: 2.11%
• YTD: 6.18%
• 1Y: 15.89%
• 3Y*: 16.34%
• 5Y*: 9.61%
• 10Y*: 9.82%
• ALL TIME*: 9.77%

HSCZ

• 1D: -0.63%
• 1M: -0.23%
• 6M: 7.23%
• YTD: 11.33%
• 1Y: 23.45%
• 3Y*: 17.89%
• 5Y*: 10.91%
• 10Y*: 11.86%
• ALL TIME*: 10.50%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
DDLS WisdomTree Dynamic Currency Hedged International SmallCap Equity Fund	$690.04K	$775.99K	$927.24K
HSCZ iShares Currency Hedged MSCI EAFE Small Cap ETF	$2.56M	$1.76M	$1.27M

DDLS vs. HSCZ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
DDLS WisdomTree Dynamic Currency Hedged International SmallCap Equity Fund	6.18%	27.97%	10.22%	15.25%	-10.13%	17.75%	-2.95%	24.84%	-16.92%	26.91%
HSCZ iShares Currency Hedged MSCI EAFE Small Cap ETF	11.33%	25.74%	12.89%	17.03%	-11.46%	17.75%	6.40%	27.89%	-13.99%	24.52%

Correlation

The correlation between DDLS and HSCZ is 0.88, meaning they have usually moved in the same direction, including during past declines.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.88
Correlation (3Y) Balances recent behavior with more history.	0.89
Correlation (5Y) Shows whether the relationship held over a longer period.	0.91
Correlation (10Y) Provides a long-term view across more market conditions.	0.86
Correlation (All Time) Calculated using the full available price history since Jan 7, 2016	0.83

The correlation between DDLS and HSCZ has been stable across timeframes, ranging from 0.83 to 0.91 - a consistent structural relationship.

DDLS vs. HSCZ - Sectors Allocation Comparison

Sectors	DDLS	HSCZ
Industrials	28.1%	24.1%
Financial Services	13.8%	12.7%
Consumer Cyclical	12.8%	12.6%
Basic Materials	9.1%	9.8%
Technology	9.0%	10.8%
Consumer Defensive	7.7%	4.9%
Real Estate	7.5%	10.0%
Communication Services	4.1%	3.7%
Healthcare	3.6%	6.1%
Energy	2.4%	3.3%
Utilities	2.0%	2.1%

Return for Risk

DDLS vs. HSCZ — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

DDLS

DDLS Risk / Return Rank: 47
DDLS Sharpe Ratio Rank: 49
DDLS Sortino Ratio Rank: 50
DDLS Omega Ratio Rank: 50
DDLS Calmar Ratio Rank: 42
DDLS Martin Ratio Rank: 45

HSCZ

HSCZ Risk / Return Rank: 78
HSCZ Sharpe Ratio Rank: 82
HSCZ Sortino Ratio Rank: 82
HSCZ Omega Ratio Rank: 81
HSCZ Calmar Ratio Rank: 68
HSCZ Martin Ratio Rank: 77

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

DDLS vs. HSCZ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for WisdomTree Dynamic Currency Hedged International SmallCap Equity Fund (DDLS) and iShares Currency Hedged MSCI EAFE Small Cap ETF (HSCZ). 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.

	DDLS	HSCZ	Difference
Sharpe ratio: Return per unit of total volatility	1.20	1.88	-0.68
Sortino ratio: Return per unit of downside risk	1.78	2.67	-0.89
Omega ratio: Gain probability vs. loss probability	1.23	1.34	-0.11
Calmar ratio: Return relative to maximum drawdown	1.48	2.34	-0.86
Martin ratio: Return relative to average drawdown	5.06	9.75	-4.69

DDLS vs. HSCZ - Sharpe Ratio Comparison

The current DDLS Sharpe Ratio is 1.20, which is lower than the HSCZ Sharpe Ratio of 1.88. The chart below compares the historical Sharpe Ratios of DDLS and HSCZ, 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

DDLS vs. HSCZ - Drawdown Comparison

The maximum DDLS drawdown since its inception was -36.80%, which is greater than HSCZ's maximum drawdown of -34.89%. Use the drawdown chart below to compare losses from any high point for DDLS and HSCZ.

Drawdown Indicators

	DDLS	HSCZ	Difference
Max Drawdown Largest peak-to-trough decline	-36.80%	-34.89%	-1.91%
Max Drawdown (1Y) Largest decline over 1 year	-10.69%	-9.61%	-1.08%
Max Drawdown (3Y) Largest decline over 3 years	-11.66%	-12.81%	+1.15%
Max Drawdown (5Y) Largest decline over 5 years	-19.87%	-20.11%	+0.24%
Max Drawdown (10Y) Largest decline over 10 years	-36.80%	-34.89%	-1.91%
Current Drawdown Current decline from peak	-2.78%	-1.77%	-1.01%
Average Drawdown Average peak-to-trough decline	-5.67%	-4.60%	-1.07%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.13%	2.31%	+0.82%

Volatility

DDLS vs. HSCZ - Volatility Comparison

The current volatility for WisdomTree Dynamic Currency Hedged International SmallCap Equity Fund (DDLS) is 3.33%, while iShares Currency Hedged MSCI EAFE Small Cap ETF (HSCZ) has a volatility of 3.90%. This indicates that DDLS experiences smaller price fluctuations and is considered to be less risky than HSCZ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DDLS	HSCZ	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.33%	3.90%	-0.57%
Volatility (6M) Calculated over the trailing 6-month period	11.15%	10.15%	+1.00%
Volatility (1Y) Calculated over the trailing 1-year period	13.18%	11.99%	+1.19%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.77%	13.51%	+0.26%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.45%	15.35%	+0.10%

DDLS vs. HSCZ - Expense Ratio Comparison

DDLS has a 0.48% expense ratio, which is higher than HSCZ's 0.43% expense ratio.

Dividends

DDLS vs. HSCZ - Dividend Comparison

DDLS's dividend yield for the trailing twelve months is around 3.64%, more than HSCZ's 3.13% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DDLS WisdomTree Dynamic Currency Hedged International SmallCap Equity Fund	3.64%	3.80%	4.11%	4.05%	5.44%	3.18%	3.16%	3.68%	1.75%	1.60%	3.47%	0.00%
HSCZ iShares Currency Hedged MSCI EAFE Small Cap ETF	3.13%	3.25%	3.26%	2.98%	26.91%	2.90%	1.46%	4.66%	6.15%	2.52%	2.57%	1.75%

Frequently Asked Questions

Can I hold both DDLS and HSCZ in my portfolio?

DDLS and HSCZ have a correlation of 0.88, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, DDLS or HSCZ?

HSCZ has higher volatility (3.90%) compared to DDLS (3.33%). In terms of maximum drawdown, DDLS dropped -36.80% vs HSCZ's -34.89%.

Which ETF is better, DDLS or HSCZ?

On 10-year performance, HSCZ leads with 11.86% vs 9.82% for DDLS. On fees, HSCZ is cheaper at 0.43% per year. On volatility, DDLS has been the lower-risk option at 3.33%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DDLS or HSCZ?

Over the 10-year period, HSCZ has performed better with a 11.86% return vs 9.82%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DDLS or HSCZ?

HSCZ is cheaper with a 0.43% expense ratio, compared with 0.48% for DDLS.

Which ETF pays a higher dividend yield, DDLS or HSCZ?

DDLS has the higher dividend yield at 3.64%, compared with 3.13% for HSCZ.

What is the main difference between DDLS and HSCZ?

DDLS tracks WisdomTree Dynamic Currency Hedged International SmallCap Equity Index, while HSCZ tracks MSCI EAFE Small-Cap 100% Hedged to USD Index. They also come from different issuers: WisdomTree and iShares. Their fees differ too: 0.48% for DDLS and 0.43% for HSCZ.

Which has better risk-adjusted returns?

HSCZ currently has the higher Sharpe Ratio (1.88 vs 1.20), 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.