DDWM vs. HEFA

Last updated Jun 3, 2026

DDWM (WisdomTree Dynamic Currency Hedged International Equity Fund) and HEFA (iShares Currency Hedged MSCI EAFE ETF) are both Foreign Large Cap Equities funds - DDWM tracks the WisdomTree Dynamic Currency Hedged International Equity Index while HEFA tracks the MSCI EAFE 100% Hedged to USD Index. Both are passively managed. Over the past 10 years, DDWM returned 10.42%/yr vs 12.65%/yr for HEFA. Their correlation of 0.90 suggests significant overlap in exposure. DDWM charges 0.40%/yr vs 0.35%/yr for HEFA.

Performance

DDWM vs. HEFA - Performance Comparison

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

Returns By Period

In the year-to-date period, DDWM achieves a 7.16% return, which is significantly lower than HEFA's 10.74% return. Over the past 10 years, DDWM has underperformed HEFA with an annualized return of 10.42%, while HEFA has yielded a comparatively higher 12.65% annualized return.

DDWM

• 1D: 0.40%
• 1M: 2.50%
• YTD: 7.16%
• 6M: 9.88%
• 1Y: 20.15%
• 3Y*: 18.10%
• 5Y*: 12.49%
• 10Y*: 10.42%

HEFA

• 1D: 0.66%
• 1M: 4.11%
• YTD: 10.74%
• 6M: 13.13%
• 1Y: 26.32%
• 3Y*: 18.49%
• 5Y*: 13.71%
• 10Y*: 12.65%

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

DDWM vs. HEFA - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
DDWM WisdomTree Dynamic Currency Hedged International Equity Fund	7.16%	30.07%	10.70%	15.25%	-0.77%	14.84%	-4.56%	21.43%	-11.75%	18.80%
HEFA iShares Currency Hedged MSCI EAFE ETF	10.74%	24.58%	13.71%	20.33%	-4.86%	19.59%	2.09%	27.63%	-9.33%	16.67%

Correlation

The correlation between DDWM and HEFA is 0.88, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.88
Correlation (3Y) Calculated over the trailing 3-year period	0.89
Correlation (5Y) Calculated over the trailing 5-year period	0.91
Correlation (10Y) Calculated over the trailing 10-year period	0.91
Correlation (All Time) Calculated using the full available price history since Feb 5, 2016	0.90

The correlation between DDWM and HEFA has been stable across timeframes, ranging from 0.88 to 0.91 - a consistent structural relationship.

DDWM vs. HEFA - Sectors Allocation Comparison

Sectors	DDWM	HEFA
Industrials	21.1%	19.3%
Financial Services	20.6%	24.3%
Consumer Cyclical	10.3%	7.4%
Healthcare	8.8%	10.1%
Technology	8.1%	11.0%
Consumer Defensive	7.5%	6.8%
Communication Services	5.5%	4.4%
Utilities	5.5%	3.7%
Basic Materials	5.4%	6.2%
Energy	4.1%	3.8%
Real Estate	3.1%	1.8%

Return for Risk

DDWM vs. HEFA — Risk / Return Rank

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

DDWM

DDWM Risk / Return Rank: 44
DDWM Sharpe Ratio Rank: 46
DDWM Sortino Ratio Rank: 45
DDWM Omega Ratio Rank: 48
DDWM Calmar Ratio Rank: 39
DDWM Martin Ratio Rank: 44

HEFA

HEFA Risk / Return Rank: 62
HEFA Sharpe Ratio Rank: 62
HEFA Sortino Ratio Rank: 62
HEFA Omega Ratio Rank: 64
HEFA Calmar Ratio Rank: 56
HEFA Martin Ratio Rank: 64

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.

DDWM vs. HEFA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for WisdomTree Dynamic Currency Hedged International Equity Fund (DDWM) and iShares Currency Hedged MSCI EAFE ETF (HEFA). 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.

	DDWM	HEFA	Difference
Sharpe ratio Return per unit of total volatility	1.61	2.10	-0.49
Sortino ratio Return per unit of downside risk	2.24	2.94	-0.70
Omega ratio Gain probability vs. loss probability	1.30	1.39	-0.09
Calmar ratio Return relative to maximum drawdown	2.01	2.83	-0.82
Martin ratio Return relative to average drawdown	7.39	11.83	-4.44
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

DDWM vs. HEFA - Sharpe Ratio Comparison

The current DDWM Sharpe Ratio is 1.61, which is comparable to the HEFA Sharpe Ratio of 2.10. The chart below compares the historical Sharpe Ratios of DDWM and HEFA, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	DDWM	HEFA	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.61	2.10	-0.49
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.94	1.00	-0.06
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.68	0.80	-0.12
Sharpe Ratio (All Time) Calculated using the full available price history	0.70	0.67	+0.03

Drawdowns

DDWM vs. HEFA - Drawdown Comparison

The maximum DDWM drawdown since its inception was -35.00%, which is greater than HEFA's maximum drawdown of -32.39%. Use the drawdown chart below to compare losses from any high point for DDWM and HEFA.

Drawdown Indicators

	DDWM	HEFA	Difference
Max Drawdown Largest peak-to-trough decline	-35.00%	-32.39%	-2.61%
Max Drawdown (1Y) Largest decline over 1 year	-10.56%	-9.52%	-1.04%
Max Drawdown (3Y) Largest decline over 3 years	-12.34%	-14.28%	+1.94%
Max Drawdown (5Y) Largest decline over 5 years	-14.79%	-14.79%	0.00%
Max Drawdown (10Y) Largest decline over 10 years	-35.00%	-32.39%	-2.61%
Current Drawdown Current decline from peak	-2.23%	0.00%	-2.23%
Average Drawdown Average peak-to-trough decline	-4.05%	-4.17%	+0.12%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.87%	2.28%	+0.59%

Volatility

DDWM vs. HEFA - Volatility Comparison

WisdomTree Dynamic Currency Hedged International Equity Fund (DDWM) and iShares Currency Hedged MSCI EAFE ETF (HEFA) have volatilities of 3.99% and 4.17%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DDWM	HEFA	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.99%	4.17%	-0.18%
Volatility (6M) Calculated over the trailing 6-month period	10.43%	10.13%	+0.30%
Volatility (1Y) Calculated over the trailing 1-year period	12.61%	12.59%	+0.02%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.32%	13.76%	-0.44%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.32%	15.86%	-0.54%

DDWM vs. HEFA - Expense Ratio Comparison

DDWM has a 0.40% expense ratio, which is higher than HEFA's 0.35% expense ratio.

Dividends

DDWM vs. HEFA - Dividend Comparison

DDWM's dividend yield for the trailing twelve months is around 2.31%, less than HEFA's 3.97% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DDWM WisdomTree Dynamic Currency Hedged International Equity Fund	2.31%	2.47%	3.57%	4.46%	4.28%	3.73%	3.52%	3.63%	4.40%	2.65%	4.00%	0.00%
HEFA iShares Currency Hedged MSCI EAFE ETF	3.97%	4.40%	3.09%	3.02%	25.14%	3.06%	2.10%	7.56%	4.58%	2.55%	3.17%	3.54%

Frequently Asked Questions

Can I hold both DDWM and HEFA in my portfolio?

DDWM and HEFA 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, DDWM or HEFA?

HEFA has higher volatility (4.17%) compared to DDWM (3.99%). In terms of maximum drawdown, DDWM dropped -35.00% vs HEFA's -32.39%.

Which ETF is better, DDWM or HEFA?

On 10-year performance, HEFA leads with 12.65% vs 10.42% for DDWM. On fees, HEFA is cheaper at 0.35% per year. On volatility, DDWM has been the lower-risk option at 3.99%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DDWM or HEFA?

Over the 10-year period, HEFA has performed better with a 12.65% return vs 10.42%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DDWM or HEFA?

HEFA is cheaper with a 0.35% expense ratio, compared with 0.40% for DDWM.

Which ETF pays a higher dividend yield, DDWM or HEFA?

HEFA has the higher dividend yield at 3.97%, compared with 2.31% for DDWM.

What is the main difference between DDWM and HEFA?

DDWM tracks WisdomTree Dynamic Currency Hedged International Equity Index, while HEFA tracks MSCI EAFE 100% Hedged to USD Index. They also come from different issuers: WisdomTree and iShares. Their fees differ too: 0.40% for DDWM and 0.35% for HEFA.

Which has better risk-adjusted returns?

HEFA currently has the higher Sharpe Ratio (2.10 vs 1.61), 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.