DFJ vs. HEWJ

Last updated Apr 1, 2026

Compare and contrast key facts about WisdomTree Japan SmallCap Dividend Fund (DFJ) and iShares Currency Hedged MSCI Japan ETF (HEWJ).

DFJ and HEWJ are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. DFJ is a passively managed fund by WisdomTree that tracks the performance of the WisdomTree Japan SmallCap Dividend Index. It was launched on Jun 16, 2006. HEWJ is a passively managed fund by iShares that tracks the performance of the MSCI Japan 100% Hedged to USD Index. It was launched on Jan 31, 2014. Both DFJ and HEWJ are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.

Performance

DFJ vs. HEWJ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in WisdomTree Japan SmallCap Dividend Fund (DFJ) and iShares Currency Hedged MSCI Japan ETF (HEWJ). The values are adjusted to include any dividend payments, if applicable.

DFJ vs. HEWJ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
DFJ WisdomTree Japan SmallCap Dividend Fund	5.94%	31.90%	2.80%	21.81%	-9.00%	0.38%	1.29%	16.98%	-18.53%	32.14%
HEWJ iShares Currency Hedged MSCI Japan ETF	6.80%	30.25%	24.80%	36.21%	-4.39%	12.79%	10.29%	20.79%	-14.68%	21.47%

Returns By Period

In the year-to-date period, DFJ achieves a 5.94% return, which is significantly lower than HEWJ's 6.80% return. Over the past 10 years, DFJ has underperformed HEWJ with an annualized return of 9.09%, while HEWJ has yielded a comparatively higher 15.11% annualized return.

DFJ

• 1D: 3.53%
• 1M: -9.59%
• YTD: 5.94%
• 6M: 9.16%
• 1Y: 32.42%
• 3Y*: 17.78%
• 5Y*: 8.69%
• 10Y*: 9.09%

HEWJ

• 1D: 2.93%
• 1M: -6.84%
• YTD: 6.80%
• 6M: 19.17%
• 1Y: 41.35%
• 3Y*: 28.90%
• 5Y*: 18.41%
• 10Y*: 15.11%

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

DFJ vs. HEWJ - Expense Ratio Comparison

DFJ has a 0.58% expense ratio, which is higher than HEWJ's 0.49% expense ratio.

DFJ

WisdomTree Japan SmallCap Dividend Fund

HEWJ

iShares Currency Hedged MSCI Japan ETF

Return for Risk

DFJ vs. HEWJ — Risk / Return Rank

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

DFJ

DFJ Risk / Return Rank: 86
DFJ Sharpe Ratio Rank: 89
DFJ Sortino Ratio Rank: 90
DFJ Omega Ratio Rank: 86
DFJ Calmar Ratio Rank: 84
DFJ Martin Ratio Rank: 81

HEWJ

HEWJ Risk / Return Rank: 89
HEWJ Sharpe Ratio Rank: 87
HEWJ Sortino Ratio Rank: 88
HEWJ Omega Ratio Rank: 88
HEWJ Calmar Ratio Rank: 92
HEWJ Martin Ratio Rank: 92

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. HEWJ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for WisdomTree Japan SmallCap Dividend Fund (DFJ) and iShares Currency Hedged MSCI Japan ETF (HEWJ). 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.

	DFJ	HEWJ	Difference
Sharpe ratio Return per unit of total volatility	1.88	1.74	+0.13
Sortino ratio Return per unit of downside risk	2.54	2.41	+0.13
Omega ratio Gain probability vs. loss probability	1.34	1.35	-0.01
Calmar ratio Return relative to maximum drawdown	2.41	3.27	-0.86
Martin ratio Return relative to average drawdown	8.69	12.62	-3.93
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

DFJ vs. HEWJ - Sharpe Ratio Comparison

The current DFJ Sharpe Ratio is 1.88, which is comparable to the HEWJ Sharpe Ratio of 1.74. The chart below compares the historical Sharpe Ratios of DFJ and HEWJ, offering insights into how both investments have performed under varying market conditions. These values are calculated using daily returns over the previous 12 months.

Sharpe Ratios by Period

	DFJ	HEWJ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.88	1.74	+0.13
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.55	0.97	-0.42
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.54	0.76	-0.22
Sharpe Ratio (All Time) Calculated using the full available price history	0.30	0.65	-0.35

Correlation

The correlation between DFJ and HEWJ is 0.71, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.

Dividends

DFJ vs. HEWJ - Dividend Comparison

DFJ's dividend yield for the trailing twelve months is around 2.51%, less than HEWJ's 4.78% yield.

	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DFJ WisdomTree Japan SmallCap Dividend Fund	2.51%	2.68%	2.46%	2.43%	2.62%	2.07%	2.59%	2.24%	1.89%	1.60%	1.76%	1.23%
HEWJ iShares Currency Hedged MSCI Japan ETF	4.78%	5.10%	2.20%	2.02%	47.68%	2.03%	1.20%	2.78%	1.37%	1.21%	1.88%	3.25%

Drawdowns

DFJ vs. HEWJ - Drawdown Comparison

The maximum DFJ drawdown since its inception was -46.00%, which is greater than HEWJ's maximum drawdown of -31.53%. Use the drawdown chart below to compare losses from any high point for DFJ and HEWJ.

Drawdown Indicators

	DFJ	HEWJ	Difference
Max Drawdown Largest peak-to-trough decline	-46.00%	-31.53%	-14.47%
Max Drawdown (1Y) Largest decline over 1 year	-13.03%	-11.99%	-1.04%
Max Drawdown (5Y) Largest decline over 5 years	-29.71%	-20.90%	-8.81%
Max Drawdown (10Y) Largest decline over 10 years	-40.02%	-31.53%	-8.49%
Current Drawdown Current decline from peak	-9.59%	-7.04%	-2.55%
Average Drawdown Average peak-to-trough decline	-11.19%	-6.68%	-4.51%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.62%	3.19%	+0.43%

Volatility

DFJ vs. HEWJ - Volatility Comparison

The current volatility for WisdomTree Japan SmallCap Dividend Fund (DFJ) is 7.65%, while iShares Currency Hedged MSCI Japan ETF (HEWJ) has a volatility of 8.41%. This indicates that DFJ experiences smaller price fluctuations and is considered to be less risky than HEWJ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DFJ	HEWJ	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.65%	8.41%	-0.76%
Volatility (6M) Calculated over the trailing 6-month period	12.62%	14.72%	-2.10%
Volatility (1Y) Calculated over the trailing 1-year period	17.39%	23.87%	-6.48%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.75%	18.99%	-3.24%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.90%	19.99%	-3.09%