DON vs. DXJ

Last updated Jun 4, 2026

DON (WisdomTree US MidCap Dividend ETF) and DXJ (WisdomTree Japan Hedged Equity Fund) are both exchange-traded funds - DON is a Mid Cap Value Equities fund tracking the WisdomTree U.S. MidCap Dividend Index, while DXJ is a Japan Equities fund tracking the WisdomTree Japan Hedged Equity Index. Both are passively managed. Over the past 10 years, DON returned 9.16%/yr vs 18.33%/yr for DXJ. A 0.60 correlation means they provide meaningful diversification when combined. DON charges 0.38%/yr vs 0.48%/yr for DXJ.

Performance

DON vs. DXJ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in WisdomTree US MidCap Dividend ETF (DON) 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, DON achieves a 7.24% return, which is significantly lower than DXJ's 19.64% return. Over the past 10 years, DON has underperformed DXJ with an annualized return of 9.16%, while DXJ has yielded a comparatively higher 18.33% annualized return.

DON

• 1D: -0.45%
• 1M: 0.47%
• YTD: 7.24%
• 6M: 6.89%
• 1Y: 14.24%
• 3Y*: 13.37%
• 5Y*: 7.54%
• 10Y*: 9.16%

DXJ

• 1D: 0.74%
• 1M: 7.24%
• YTD: 19.64%
• 6M: 24.36%
• 1Y: 53.93%
• 3Y*: 33.15%
• 5Y*: 26.13%
• 10Y*: 18.33%

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

DON vs. DXJ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
DON WisdomTree US MidCap Dividend ETF	7.24%	3.86%	14.20%	14.04%	-4.72%	30.29%	-5.40%	23.31%	-8.26%	14.86%
DXJ WisdomTree Japan Hedged Equity Fund	19.64%	32.78%	29.83%	42.04%	5.96%	17.99%	3.94%	18.94%	-19.78%	22.81%

Correlation

The correlation between DON and DXJ is 0.48, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.48
Correlation (3Y) Calculated over the trailing 3-year period	0.47
Correlation (5Y) Calculated over the trailing 5-year period	0.56
Correlation (10Y) Calculated over the trailing 10-year period	0.59
Correlation (All Time) Calculated using the full available price history since Jun 19, 2006	0.60

The correlation between DON and DXJ shifts across timeframes, from 0.47 (3 years) to 0.60 (all time), reflecting how their relationship changes across market environments.

DON vs. DXJ - Sectors Allocation Comparison

Sectors	DON	DXJ
Financial Services	21.1%	18.3%
Industrials	17.1%	27.4%
Consumer Cyclical	11.5%	15.6%
Real Estate	9.3%	-
Energy	7.9%	1.7%
Utilities	6.9%	0.1%
Basic Materials	6.4%	8.5%
Technology	4.5%	12.9%
Communication Services	3.9%	2.7%
Consumer Defensive	3.6%	4.7%
Healthcare	2.4%	6.8%

Return for Risk

DON vs. DXJ — Risk / Return Rank

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

DON

DON Risk / Return Rank: 31
DON Sharpe Ratio Rank: 30
DON Sortino Ratio Rank: 31
DON Omega Ratio Rank: 27
DON Calmar Ratio Rank: 31
DON Martin Ratio Rank: 32

DXJ

DXJ Risk / Return Rank: 88
DXJ Sharpe Ratio Rank: 89
DXJ Sortino Ratio Rank: 89
DXJ Omega Ratio Rank: 88
DXJ Calmar Ratio Rank: 86
DXJ Martin Ratio Rank: 87

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.

DON vs. DXJ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for WisdomTree US MidCap Dividend ETF (DON) 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.

	DON	DXJ	Difference
Sharpe ratio: Return per unit of total volatility	1.10	3.11	-2.00
Sortino ratio: Return per unit of downside risk	1.71	4.20	-2.50
Omega ratio: Gain probability vs. loss probability	1.19	1.56	-0.37
Calmar ratio: Return relative to maximum drawdown	1.58	4.94	-3.36
Martin ratio: Return relative to average drawdown	4.93	19.29	-14.36
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

DON vs. DXJ - Sharpe Ratio Comparison

The current DON Sharpe Ratio is 1.10, which is lower than the DXJ Sharpe Ratio of 3.11. The chart below compares the historical Sharpe Ratios of DON 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.

Sharpe Ratios by Period

	DON	DXJ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.10	3.11	-2.00
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.43	1.39	-0.96
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.45	0.91	-0.46
Sharpe Ratio (All Time) Calculated using the full available price history	0.42	0.43	0.00

Drawdowns

DON vs. DXJ - Drawdown Comparison

The maximum DON drawdown since its inception was -61.94%, which is greater than DXJ's maximum drawdown of -49.63%. Use the drawdown chart below to compare losses from any high point for DON and DXJ.

Drawdown Indicators

	DON	DXJ	Difference
Max Drawdown Largest peak-to-trough decline	-61.94%	-49.63%	-12.31%
Max Drawdown (1Y) Largest decline over 1 year	-9.05%	-10.98%	+1.93%
Max Drawdown (3Y) Largest decline over 3 years	-21.46%	-22.19%	+0.73%
Max Drawdown (5Y) Largest decline over 5 years	-21.46%	-22.19%	+0.73%
Max Drawdown (10Y) Largest decline over 10 years	-46.80%	-39.14%	-7.66%
Current Drawdown Current decline from peak	-1.93%	0.00%	-1.93%
Average Drawdown Average peak-to-trough decline	-7.90%	-14.34%	+6.44%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.90%	2.81%	+0.09%

Volatility

DON vs. DXJ - Volatility Comparison

The current volatility for WisdomTree US MidCap Dividend ETF (DON) is 3.06%, while WisdomTree Japan Hedged Equity Fund (DXJ) has a volatility of 3.55%. This indicates that DON experiences smaller price fluctuations and is considered to be less risky than DXJ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DON	DXJ	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.06%	3.55%	-0.49%
Volatility (6M) Calculated over the trailing 6-month period	8.87%	13.09%	-4.22%
Volatility (1Y) Calculated over the trailing 1-year period	12.97%	17.44%	-4.47%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.77%	18.96%	-1.19%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.26%	20.18%	+0.08%

DON vs. DXJ - Expense Ratio Comparison

DON has a 0.38% expense ratio, which is lower than DXJ's 0.48% expense ratio.

Dividends

DON vs. DXJ - Dividend Comparison

DON's dividend yield for the trailing twelve months is around 2.36%, more than DXJ's 1.08% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DON WisdomTree US MidCap Dividend ETF	2.36%	2.53%	2.27%	2.41%	2.71%	2.12%	2.77%	2.38%	2.55%	2.25%	2.48%	2.89%
DXJ WisdomTree Japan Hedged Equity Fund	1.08%	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 DON and DXJ in my portfolio?

DON and DXJ have a correlation of 0.48, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, DON or DXJ?

DXJ has higher volatility (3.55%) compared to DON (3.06%). In terms of maximum drawdown, DON dropped -61.94% vs DXJ's -49.63%.

Which ETF is better, DON or DXJ?

On 10-year performance, DXJ leads with 18.33% vs 9.16% for DON. On fees, DON is cheaper at 0.38% per year. On volatility, DON has been the lower-risk option at 3.06%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DON or DXJ?

Over the 10-year period, DXJ has performed better with a 18.33% return vs 9.16%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DON or DXJ?

DON is cheaper with a 0.38% expense ratio, compared with 0.48% for DXJ.

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

DON has the higher dividend yield at 2.36%, compared with 1.08% for DXJ.

What is the main difference between DON and DXJ?

DON is categorized as Mid Cap Value Equities, while DXJ is Japan Equities. DON tracks WisdomTree U.S. MidCap Dividend Index, while DXJ tracks WisdomTree Japan Hedged Equity Index. Their fees differ too: 0.38% for DON and 0.48% for DXJ.

Which has better risk-adjusted returns?

DXJ currently has the higher Sharpe Ratio (3.11 vs 1.10), 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.