DFJ vs. DXJ

Last updated Aug 2, 2026

DFJ (WisdomTree Japan SmallCap Dividend Fund) and DXJ (WisdomTree Japan Hedged Equity Fund) are both Japan Equities funds from WisdomTree - DFJ tracks the WisdomTree Japan SmallCap Dividend Index while DXJ tracks the WisdomTree Japan Hedged Equity Index. Both are passively managed. Over the past 10 years, DFJ returned 8.80%/yr vs 19.00%/yr for DXJ. Their 0.75 correlation means they have sometimes moved together and sometimes differently. DFJ charges 0.58%/yr vs 0.48%/yr for DXJ.

Performance

DFJ vs. DXJ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in WisdomTree Japan SmallCap Dividend Fund (DFJ) 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, DFJ achieves a 12.43% return, which is significantly lower than DXJ's 21.25% return. Over the past 10 years, DFJ has underperformed DXJ with an annualized return of 8.80%, while DXJ has yielded a comparatively higher 19.00% annualized return.

DFJ

• 1D: -0.21%
• 1M: -0.56%
• 6M: 5.79%
• YTD: 12.43%
• 1Y: 23.77%
• 3Y*: 18.59%
• 5Y*: 10.25%
• 10Y*: 8.80%
• ALL TIME*: 5.90%

DXJ

• 1D: -0.73%
• 1M: -0.63%
• 6M: 14.45%
• YTD: 21.25%
• 1Y: 49.27%
• 3Y*: 30.10%
• 5Y*: 27.38%
• 10Y*: 19.00%
• ALL TIME*: 9.44%

*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)
DFJ WisdomTree Japan SmallCap Dividend Fund	$4.27M	$3.89M	$3.95M
DXJ WisdomTree Japan Hedged Equity Fund	$66.09M	$60.67M	$58.46M

DFJ vs. DXJ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
DFJ WisdomTree Japan SmallCap Dividend Fund	12.43%	31.90%	2.80%	21.81%	-9.00%	0.38%	1.29%	16.98%	-18.53%	32.14%
DXJ WisdomTree Japan Hedged Equity Fund	21.25%	32.78%	29.83%	42.04%	5.96%	17.99%	3.94%	18.94%	-19.78%	22.81%

Correlation

The correlation between DFJ and DXJ is 0.71, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.71
Correlation (3Y) Balances recent behavior with more history.	0.63
Correlation (5Y) Shows whether the relationship held over a longer period.	0.64
Correlation (10Y) Provides a long-term view across more market conditions.	0.70
Correlation (All Time) Calculated using the full available price history since Jun 16, 2006	0.75

The correlation between DFJ and DXJ shifts across timeframes, from 0.63 (3 years) to 0.75 (all time), reflecting how their relationship changes across market environments.

DFJ vs. DXJ - Sectors Allocation Comparison

Sectors	DFJ	DXJ
Industrials	26.8%	29.5%
Consumer Cyclical	15.9%	13.3%
Financial Services	13.8%	18.3%
Basic Materials	13.8%	9.1%
Technology	13.2%	12.9%
Consumer Defensive	7.1%	4.7%
Healthcare	3.7%	6.8%
Real Estate	2.7%	-
Utilities	1.5%	0.1%
Communication Services	1.3%	2.3%
Energy	0.3%	1.7%

Return for Risk

DFJ vs. DXJ — Risk / Return Rank

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

DFJ

DFJ Risk / Return Rank: 60
DFJ Sharpe Ratio Rank: 66
DFJ Sortino Ratio Rank: 66
DFJ Omega Ratio Rank: 61
DFJ Calmar Ratio Rank: 58
DFJ Martin Ratio Rank: 47

DXJ

DXJ Risk / Return Rank: 93
DXJ Sharpe Ratio Rank: 94
DXJ Sortino Ratio Rank: 92
DXJ Omega Ratio Rank: 93
DXJ Calmar Ratio Rank: 92
DXJ Martin Ratio Rank: 92

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.

DFJ vs. DXJ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for WisdomTree Japan SmallCap Dividend Fund (DFJ) 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.

	DFJ	DXJ	Difference
Sharpe ratio: Return per unit of total volatility	1.51	2.61	-1.10
Sortino ratio: Return per unit of downside risk	2.18	3.40	-1.23
Omega ratio: Gain probability vs. loss probability	1.26	1.46	-0.20
Calmar ratio: Return relative to maximum drawdown	2.04	4.30	-2.26
Martin ratio: Return relative to average drawdown	5.39	16.08	-10.69

DFJ vs. DXJ - Sharpe Ratio Comparison

The current DFJ Sharpe Ratio is 1.51, which is lower than the DXJ Sharpe Ratio of 2.61. The chart below compares the historical Sharpe Ratios of DFJ 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

DFJ vs. DXJ - Drawdown Comparison

The maximum DFJ drawdown since its inception was -46.00%, smaller than the maximum DXJ drawdown of -49.63%. Use the drawdown chart below to compare losses from any high point for DFJ and DXJ.

Drawdown Indicators

	DFJ	DXJ	Difference
Max Drawdown Largest peak-to-trough decline	-46.00%	-49.63%	+3.63%
Max Drawdown (1Y) Largest decline over 1 year	-13.03%	-10.98%	-2.05%
Max Drawdown (3Y) Largest decline over 3 years	-13.03%	-22.19%	+9.16%
Max Drawdown (5Y) Largest decline over 5 years	-29.71%	-22.19%	-7.52%
Max Drawdown (10Y) Largest decline over 10 years	-40.02%	-39.14%	-0.88%
Current Drawdown Current decline from peak	-4.04%	-3.40%	-0.64%
Average Drawdown Average peak-to-trough decline	-11.10%	-14.24%	+3.14%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.91%	2.93%	+1.98%

Volatility

DFJ vs. DXJ - Volatility Comparison

WisdomTree Japan SmallCap Dividend Fund (DFJ) and WisdomTree Japan Hedged Equity Fund (DXJ) have volatilities of 6.34% and 6.07%, 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

	DFJ	DXJ	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.34%	6.07%	+0.27%
Volatility (6M) Calculated over the trailing 6-month period	14.82%	14.35%	+0.47%
Volatility (1Y) Calculated over the trailing 1-year period	17.57%	18.07%	-0.50%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.11%	19.07%	-2.96%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.00%	19.93%	-2.93%

DFJ vs. DXJ - Expense Ratio Comparison

DFJ has a 0.58% expense ratio, which is higher than DXJ's 0.48% expense ratio.

Dividends

DFJ vs. DXJ - Dividend Comparison

DFJ's dividend yield for the trailing twelve months is around 2.61%, more than DXJ's 0.97% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DFJ WisdomTree Japan SmallCap Dividend Fund	2.61%	2.68%	2.46%	2.43%	2.62%	2.07%	2.59%	2.24%	1.89%	1.60%	1.76%	1.23%
DXJ WisdomTree Japan Hedged Equity Fund	0.97%	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 DFJ and DXJ in my portfolio?

DFJ and DXJ have a correlation of 0.71, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, DFJ or DXJ?

DFJ has higher volatility (6.34%) compared to DXJ (6.07%). In terms of maximum drawdown, DFJ dropped -46.00% vs DXJ's -49.63%.

Which ETF is better, DFJ or DXJ?

On 10-year performance, DXJ leads with 19.00% vs 8.80% for DFJ. On fees, DXJ is cheaper at 0.48% per year. On volatility, DXJ has been the lower-risk option at 6.07%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DFJ or DXJ?

Over the 10-year period, DXJ has performed better with a 19.00% return vs 8.80%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DFJ or DXJ?

DXJ is cheaper with a 0.48% expense ratio, compared with 0.58% for DFJ.

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

DFJ has the higher dividend yield at 2.61%, compared with 0.97% for DXJ.

What is the main difference between DFJ and DXJ?

DFJ tracks WisdomTree Japan SmallCap Dividend Index, while DXJ tracks WisdomTree Japan Hedged Equity Index. Their fees differ too: 0.58% for DFJ and 0.48% for DXJ.

Which has better risk-adjusted returns?

DXJ currently has the higher Sharpe Ratio (2.61 vs 1.51), 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.