DLS vs. HSCZ

Last updated Jun 4, 2026

DLS (WisdomTree International SmallCap Dividend) and HSCZ (iShares Currency Hedged MSCI EAFE Small Cap ETF) are both Foreign Small & Mid Cap Equities funds - DLS tracks the WisdomTree International SmallCap Dividend Index while HSCZ tracks the MSCI EAFE Small-Cap 100% Hedged to USD Index. Both are passively managed. Over the past 10 years, DLS returned 7.46%/yr vs 11.62%/yr for HSCZ. A 0.78 correlation means they provide meaningful diversification when combined. DLS charges 0.58%/yr vs 0.43%/yr for HSCZ.

Performance

DLS vs. HSCZ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in WisdomTree International SmallCap Dividend (DLS) 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, DLS achieves a 6.63% return, which is significantly lower than HSCZ's 10.57% return. Over the past 10 years, DLS has underperformed HSCZ with an annualized return of 7.46%, while HSCZ has yielded a comparatively higher 11.62% annualized return.

DLS

• 1D: -0.94%
• 1M: 0.80%
• YTD: 6.63%
• 6M: 9.37%
• 1Y: 22.56%
• 3Y*: 17.27%
• 5Y*: 6.55%
• 10Y*: 7.46%

HSCZ

• 1D: -0.17%
• 1M: 4.13%
• YTD: 10.57%
• 6M: 13.25%
• 1Y: 28.62%
• 3Y*: 18.68%
• 5Y*: 10.97%
• 10Y*: 11.62%

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

DLS vs. HSCZ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
DLS WisdomTree International SmallCap Dividend	6.63%	34.11%	3.06%	15.33%	-17.31%	11.71%	-1.28%	22.20%	-18.95%	31.83%
HSCZ iShares Currency Hedged MSCI EAFE Small Cap ETF	10.57%	25.74%	12.89%	17.03%	-11.46%	17.75%	6.40%	27.89%	-13.99%	24.52%

Correlation

The correlation between DLS and HSCZ is 0.83, 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	0.83
Correlation (3Y) Calculated over the trailing 3-year period	0.83
Correlation (5Y) Calculated over the trailing 5-year period	0.85
Correlation (10Y) Calculated over the trailing 10-year period	0.81
Correlation (All Time) Calculated using the full available price history since Jul 15, 2015	0.78

The correlation between DLS and HSCZ has been stable across timeframes, ranging from 0.78 to 0.85 - a consistent structural relationship.

DLS vs. HSCZ - Sectors Allocation Comparison

Sectors	DLS	HSCZ
Industrials	27.8%	23.3%
Financial Services	13.3%	16.0%
Consumer Cyclical	12.8%	8.1%
Basic Materials	8.9%	13.7%
Technology	8.4%	9.8%
Consumer Defensive	7.9%	2.9%
Real Estate	7.8%	9.6%
Communication Services	4.4%	3.5%
Healthcare	3.7%	3.3%
Energy	3.0%	4.1%
Utilities	2.1%	3.5%

Return for Risk

DLS vs. HSCZ — Risk / Return Rank

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

DLS

DLS Risk / Return Rank: 46
DLS Sharpe Ratio Rank: 48
DLS Sortino Ratio Rank: 48
DLS Omega Ratio Rank: 48
DLS Calmar Ratio Rank: 41
DLS Martin Ratio Rank: 45

HSCZ

HSCZ Risk / Return Rank: 73
HSCZ Sharpe Ratio Rank: 78
HSCZ Sortino Ratio Rank: 80
HSCZ Omega Ratio Rank: 80
HSCZ Calmar Ratio Rank: 60
HSCZ Martin Ratio Rank: 69

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.

DLS vs. HSCZ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for WisdomTree International SmallCap Dividend (DLS) 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.

	DLS	HSCZ	Difference
Sharpe ratio Return per unit of total volatility	1.69	2.57	-0.87
Sortino ratio Return per unit of downside risk	2.41	3.63	-1.22
Omega ratio Gain probability vs. loss probability	1.31	1.48	-0.18
Calmar ratio Return relative to maximum drawdown	2.05	2.99	-0.94
Martin ratio Return relative to average drawdown	7.55	12.84	-5.29
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

DLS vs. HSCZ - Sharpe Ratio Comparison

The current DLS Sharpe Ratio is 1.69, which is lower than the HSCZ Sharpe Ratio of 2.57. The chart below compares the historical Sharpe Ratios of DLS 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.

Sharpe Ratios by Period

	DLS	HSCZ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.69	2.57	-0.87
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.42	0.82	-0.40
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.45	0.74	-0.30
Sharpe Ratio (All Time) Calculated using the full available price history	0.33	0.67	-0.33

Drawdowns

DLS vs. HSCZ - Drawdown Comparison

The maximum DLS drawdown since its inception was -63.13%, which is greater than HSCZ's maximum drawdown of -34.89%. Use the drawdown chart below to compare losses from any high point for DLS and HSCZ.

Drawdown Indicators

	DLS	HSCZ	Difference
Max Drawdown Largest peak-to-trough decline	-63.13%	-34.89%	-28.24%
Max Drawdown (1Y) Largest decline over 1 year	-11.04%	-9.61%	-1.43%
Max Drawdown (3Y) Largest decline over 3 years	-12.69%	-12.81%	+0.12%
Max Drawdown (5Y) Largest decline over 5 years	-32.22%	-20.11%	-12.11%
Max Drawdown (10Y) Largest decline over 10 years	-44.77%	-34.89%	-9.88%
Current Drawdown Current decline from peak	-3.20%	-0.98%	-2.22%
Average Drawdown Average peak-to-trough decline	-13.65%	-4.65%	-9.00%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.99%	2.23%	+0.76%

Volatility

DLS vs. HSCZ - Volatility Comparison

WisdomTree International SmallCap Dividend (DLS) has a higher volatility of 4.58% compared to iShares Currency Hedged MSCI EAFE Small Cap ETF (HSCZ) at 3.44%. This indicates that DLS's price experiences larger fluctuations and is considered to be riskier than HSCZ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DLS	HSCZ	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.58%	3.44%	+1.14%
Volatility (6M) Calculated over the trailing 6-month period	10.98%	9.20%	+1.78%
Volatility (1Y) Calculated over the trailing 1-year period	13.44%	11.21%	+2.23%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.57%	13.46%	+2.11%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.67%	15.66%	+1.01%

DLS vs. HSCZ - Expense Ratio Comparison

DLS has a 0.58% expense ratio, which is higher than HSCZ's 0.43% expense ratio.

Dividends

DLS vs. HSCZ - Dividend Comparison

DLS's dividend yield for the trailing twelve months is around 3.50%, more than HSCZ's 2.94% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DLS WisdomTree International SmallCap Dividend	3.50%	3.87%	4.56%	4.29%	4.96%	3.29%	2.50%	3.37%	3.66%	2.79%	3.29%	2.72%
HSCZ iShares Currency Hedged MSCI EAFE Small Cap ETF	2.94%	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 DLS and HSCZ in my portfolio?

DLS and HSCZ have a correlation of 0.83, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, DLS or HSCZ?

DLS has higher volatility (4.58%) compared to HSCZ (3.44%). In terms of maximum drawdown, DLS dropped -63.13% vs HSCZ's -34.89%.

Which ETF is better, DLS or HSCZ?

On 10-year performance, HSCZ leads with 11.62% vs 7.46% for DLS. On fees, HSCZ is cheaper at 0.43% per year. On volatility, HSCZ has been the lower-risk option at 3.44%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DLS or HSCZ?

Over the 10-year period, HSCZ has performed better with a 11.62% return vs 7.46%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DLS or HSCZ?

HSCZ is cheaper with a 0.43% expense ratio, compared with 0.58% for DLS.

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

DLS has the higher dividend yield at 3.50%, compared with 2.94% for HSCZ.

What is the main difference between DLS and HSCZ?

DLS tracks WisdomTree International SmallCap Dividend 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: 0.58% for DLS and 0.43% for HSCZ.

Which has better risk-adjusted returns?

HSCZ currently has the higher Sharpe Ratio (2.57 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.