DFJ vs. FDD

Last updated Jul 17, 2026

DFJ (WisdomTree Japan SmallCap Dividend Fund) and FDD (First Trust STOXX European Select Dividend Index Fund) are both exchange-traded funds - DFJ is a Japan Equities fund tracking the WisdomTree Japan SmallCap Dividend Index, while FDD is a Europe Equities fund tracking the STOXX Europe Select Dividend 30. Both are passively managed. Over the past 10 years, DFJ returned 8.94%/yr vs 10.46%/yr for FDD. At a 0.49 correlation, their price movements are largely independent. Both charge a 0.58% expense ratio.

Performance

DFJ vs. FDD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in WisdomTree Japan SmallCap Dividend Fund (DFJ) and First Trust STOXX European Select Dividend Index Fund (FDD). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, DFJ achieves a 12.07% return, which is significantly lower than FDD's 13.60% return. Over the past 10 years, DFJ has underperformed FDD with an annualized return of 8.94%, while FDD has yielded a comparatively higher 10.46% annualized return.

DFJ

• 1D: -0.68%
• 1M: 0.07%
• 6M: 7.96%
• YTD: 12.07%
• 1Y: 28.50%
• 3Y*: 18.99%
• 5Y*: 10.30%
• 10Y*: 8.94%

FDD

• 1D: -0.16%
• 1M: 0.05%
• 6M: 12.31%
• YTD: 13.60%
• 1Y: 31.13%
• 3Y*: 25.04%
• 5Y*: 12.48%
• 10Y*: 10.46%

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

DFJ vs. FDD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
DFJ WisdomTree Japan SmallCap Dividend Fund	12.07%	31.90%	2.80%	21.81%	-9.00%	0.38%	1.29%	16.98%	-18.53%	32.14%
FDD First Trust STOXX European Select Dividend Index Fund	13.60%	62.50%	0.28%	14.16%	-16.14%	16.03%	-3.80%	23.79%	-8.98%	19.07%

Correlation

The correlation between DFJ and FDD is 0.52, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.52
Correlation (3Y) Calculated over the trailing 3-year period	0.51
Correlation (5Y) Calculated over the trailing 5-year period	0.52
Correlation (10Y) Calculated over the trailing 10-year period	0.53
Correlation (All Time) Calculated using the full available price history since Aug 30, 2007	0.49

The correlation between DFJ and FDD has been stable across timeframes, ranging from 0.49 to 0.53 - a consistent structural relationship.

DFJ vs. FDD - Sectors Allocation Comparison

Sectors	DFJ	FDD
Industrials	26.9%	13.3%
Consumer Cyclical	14.6%	12.3%
Basic Materials	13.6%	3.1%
Financial Services	13.2%	52.0%
Technology	13.1%	-
Consumer Defensive	6.4%	3.6%
Healthcare	3.7%	-
Real Estate	2.8%	3.3%
Communication Services	1.6%	2.1%
Utilities	1.5%	6.0%
Energy	0.6%	10.4%

Return for Risk

DFJ vs. FDD — Risk / Return Rank

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

DFJ

DFJ Risk / Return Rank: 58
DFJ Sharpe Ratio Rank: 65
DFJ Sortino Ratio Rank: 64
DFJ Omega Ratio Rank: 60
DFJ Calmar Ratio Rank: 54
DFJ Martin Ratio Rank: 45

FDD

FDD Risk / Return Rank: 75
FDD Sharpe Ratio Rank: 77
FDD Sortino Ratio Rank: 76
FDD Omega Ratio Rank: 72
FDD Calmar Ratio Rank: 80
FDD Martin Ratio Rank: 73

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.

DFJ vs. FDD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for WisdomTree Japan SmallCap Dividend Fund (DFJ) and First Trust STOXX European Select Dividend Index Fund (FDD). 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	FDD	Difference
Sharpe ratio: Return per unit of total volatility	1.69	1.96	-0.28
Sortino ratio: Return per unit of downside risk	2.38	2.72	-0.34
Omega ratio: Gain probability vs. loss probability	1.29	1.34	-0.04
Calmar ratio: Return relative to maximum drawdown	2.20	3.33	-1.13
Martin ratio: Return relative to average drawdown	5.96	10.68	-4.72

DFJ vs. FDD - Sharpe Ratio Comparison

The current DFJ Sharpe Ratio is 1.69, which is comparable to the FDD Sharpe Ratio of 1.96. The chart below compares the historical Sharpe Ratios of DFJ and FDD, 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. FDD - Drawdown Comparison

The maximum DFJ drawdown since its inception was -46.00%, smaller than the maximum FDD drawdown of -74.77%. Use the drawdown chart below to compare losses from any high point for DFJ and FDD.

Drawdown Indicators

	DFJ	FDD	Difference
Max Drawdown Largest peak-to-trough decline	-46.00%	-74.77%	+28.77%
Max Drawdown (1Y) Largest decline over 1 year	-13.03%	-9.39%	-3.64%
Max Drawdown (3Y) Largest decline over 3 years	-13.03%	-13.06%	+0.03%
Max Drawdown (5Y) Largest decline over 5 years	-29.71%	-34.84%	+5.13%
Max Drawdown (10Y) Largest decline over 10 years	-40.02%	-41.43%	+1.41%
Current Drawdown Current decline from peak	-4.35%	-0.45%	-3.90%
Average Drawdown Average peak-to-trough decline	-11.12%	-35.26%	+24.14%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.80%	2.92%	+1.88%

Volatility

DFJ vs. FDD - Volatility Comparison

WisdomTree Japan SmallCap Dividend Fund (DFJ) has a higher volatility of 5.02% compared to First Trust STOXX European Select Dividend Index Fund (FDD) at 3.79%. This indicates that DFJ's price experiences larger fluctuations and is considered to be riskier than FDD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DFJ	FDD	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.02%	3.79%	+1.23%
Volatility (6M) Calculated over the trailing 6-month period	14.27%	13.14%	+1.13%
Volatility (1Y) Calculated over the trailing 1-year period	17.00%	15.97%	+1.03%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.97%	18.46%	-2.49%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.94%	19.75%	-2.81%

DFJ vs. FDD - Expense Ratio Comparison

Both DFJ and FDD have an expense ratio of 0.58%.

Dividends

DFJ vs. FDD - Dividend Comparison

DFJ's dividend yield for the trailing twelve months is around 2.62%, less than FDD's 5.24% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DFJ WisdomTree Japan SmallCap Dividend Fund	2.62%	2.68%	2.46%	2.43%	2.62%	2.07%	2.59%	2.24%	1.89%	1.60%	1.76%	1.23%
FDD First Trust STOXX European Select Dividend Index Fund	5.24%	3.99%	7.65%	6.85%	6.07%	3.44%	4.01%	4.69%	5.05%	2.78%	4.88%	4.35%

Frequently Asked Questions

Can I hold both DFJ and FDD in my portfolio?

DFJ and FDD have a correlation of 0.52, 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 FDD?

DFJ has higher volatility (5.02%) compared to FDD (3.79%). In terms of maximum drawdown, DFJ dropped -46.00% vs FDD's -74.77%.

Which ETF is better, DFJ or FDD?

On 10-year performance, FDD leads with 10.46% vs 8.94% for DFJ. Both ETFs have the same 0.58% expense ratio. On volatility, FDD has been the lower-risk option at 3.79%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DFJ or FDD?

Over the 10-year period, FDD has performed better with a 10.46% return vs 8.94%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DFJ or FDD?

DFJ and FDD have the same expense ratio: 0.58% per year.

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

FDD has the higher dividend yield at 5.24%, compared with 2.62% for DFJ.

What is the main difference between DFJ and FDD?

DFJ is categorized as Japan Equities, while FDD is Europe Equities. DFJ tracks WisdomTree Japan SmallCap Dividend Index, while FDD tracks STOXX Europe Select Dividend 30. They also come from different issuers: WisdomTree and First Trust.

Which has better risk-adjusted returns?

FDD currently has the higher Sharpe Ratio (1.96 vs 1.69), 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.