DXJ vs. DFJ

Last updated Jun 4, 2026

DXJ (WisdomTree Japan Hedged Equity Fund) and DFJ (WisdomTree Japan SmallCap Dividend Fund) are both Japan Equities funds from WisdomTree - DXJ tracks the WisdomTree Japan Hedged Equity Index while DFJ tracks the WisdomTree Japan SmallCap Dividend Index. Both are passively managed. Over the past 10 years, DXJ returned 18.33%/yr vs 8.70%/yr for DFJ. A 0.75 correlation means they provide meaningful diversification when combined. DXJ charges 0.48%/yr vs 0.58%/yr for DFJ.

Performance

DXJ vs. DFJ - Performance Comparison

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

Returns By Period

In the year-to-date period, DXJ achieves a 19.64% return, which is significantly higher than DFJ's 9.06% return. Over the past 10 years, DXJ has outperformed DFJ with an annualized return of 18.33%, while DFJ has yielded a comparatively lower 8.70% annualized return.

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%

DFJ

• 1D: -0.46%
• 1M: 2.01%
• YTD: 9.06%
• 6M: 12.58%
• 1Y: 26.81%
• 3Y*: 18.99%
• 5Y*: 9.51%
• 10Y*: 8.70%

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

DXJ vs. DFJ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
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%
DFJ WisdomTree Japan SmallCap Dividend Fund	9.06%	31.90%	2.80%	21.81%	-9.00%	0.38%	1.29%	16.98%	-18.53%	32.14%

Correlation

The correlation between DXJ and DFJ is 0.67, 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	0.67
Correlation (3Y) Calculated over the trailing 3-year period	0.62
Correlation (5Y) Calculated over the trailing 5-year period	0.64
Correlation (10Y) Calculated over the trailing 10-year period	0.70
Correlation (All Time) Calculated using the full available price history since Jun 19, 2006	0.75

The correlation between DXJ and DFJ shifts across timeframes, from 0.62 (3 years) to 0.75 (all time), reflecting how their relationship changes across market environments.

DXJ vs. DFJ - Sectors Allocation Comparison

Sectors	DXJ	DFJ
Industrials	27.4%	27.0%
Financial Services	18.3%	13.3%
Consumer Cyclical	15.6%	16.1%
Technology	12.9%	12.6%
Basic Materials	8.5%	13.3%
Healthcare	6.8%	4.1%
Consumer Defensive	4.7%	7.1%
Communication Services	2.7%	1.5%
Energy	1.7%	0.6%
Utilities	0.1%	1.6%
Real Estate	-	2.9%

Return for Risk

DXJ vs. DFJ — Risk / Return Rank

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

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

DFJ

DFJ Risk / Return Rank: 44
DFJ Sharpe Ratio Rank: 47
DFJ Sortino Ratio Rank: 47
DFJ Omega Ratio Rank: 45
DFJ Calmar Ratio Rank: 42
DFJ Martin Ratio Rank: 38

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.

DXJ vs. DFJ - Risk-Adjusted Trends Comparison

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

	DXJ	DFJ	Difference
Sharpe ratio Return per unit of total volatility	3.11	1.65	+1.46
Sortino ratio Return per unit of downside risk	4.20	2.34	+1.86
Omega ratio Gain probability vs. loss probability	1.56	1.29	+0.27
Calmar ratio Return relative to maximum drawdown	4.94	2.07	+2.87
Martin ratio Return relative to average drawdown	19.29	6.01	+13.28
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

DXJ vs. DFJ - Sharpe Ratio Comparison

The current DXJ Sharpe Ratio is 3.11, which is higher than the DFJ Sharpe Ratio of 1.65. The chart below compares the historical Sharpe Ratios of DXJ and DFJ, 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

	DXJ	DFJ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.11	1.65	+1.46
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	1.39	0.60	+0.78
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.91	0.51	+0.40
Sharpe Ratio (All Time) Calculated using the full available price history	0.43	0.31	+0.12

Drawdowns

DXJ vs. DFJ - Drawdown Comparison

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

Drawdown Indicators

	DXJ	DFJ	Difference
Max Drawdown Largest peak-to-trough decline	-49.63%	-46.00%	-3.63%
Max Drawdown (1Y) Largest decline over 1 year	-10.98%	-13.03%	+2.05%
Max Drawdown (3Y) Largest decline over 3 years	-22.19%	-13.03%	-9.16%
Max Drawdown (5Y) Largest decline over 5 years	-22.19%	-29.71%	+7.52%
Max Drawdown (10Y) Largest decline over 10 years	-39.14%	-40.02%	+0.88%
Current Drawdown Current decline from peak	0.00%	-6.92%	+6.92%
Average Drawdown Average peak-to-trough decline	-14.34%	-11.15%	-3.19%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.81%	4.47%	-1.66%

Volatility

DXJ vs. DFJ - Volatility Comparison

The current volatility for WisdomTree Japan Hedged Equity Fund (DXJ) is 3.55%, while WisdomTree Japan SmallCap Dividend Fund (DFJ) has a volatility of 4.15%. This indicates that DXJ experiences smaller price fluctuations and is considered to be less risky than DFJ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DXJ	DFJ	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.55%	4.15%	-0.60%
Volatility (6M) Calculated over the trailing 6-month period	13.09%	13.48%	-0.39%
Volatility (1Y) Calculated over the trailing 1-year period	17.44%	16.39%	+1.05%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.96%	15.89%	+3.07%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.18%	16.95%	+3.23%

DXJ vs. DFJ - Expense Ratio Comparison

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

Dividends

DXJ vs. DFJ - Dividend Comparison

DXJ's dividend yield for the trailing twelve months is around 1.08%, less than DFJ's 2.44% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DFJ WisdomTree Japan SmallCap Dividend Fund	2.44%	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	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 DXJ and DFJ in my portfolio?

DXJ and DFJ have a correlation of 0.67, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, DXJ or DFJ?

DFJ has higher volatility (4.15%) compared to DXJ (3.55%). In terms of maximum drawdown, DXJ dropped -49.63% vs DFJ's -46.00%.

Which ETF is better, DXJ or DFJ?

On 10-year performance, DXJ leads with 18.33% vs 8.70% for DFJ. On fees, DXJ is cheaper at 0.48% per year. On volatility, DXJ has been the lower-risk option at 3.55%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DXJ or DFJ?

Over the 10-year period, DXJ has performed better with a 18.33% return vs 8.70%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DXJ or DFJ?

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

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

DFJ has the higher dividend yield at 2.44%, compared with 1.08% for DXJ.

What is the main difference between DXJ and DFJ?

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

Which has better risk-adjusted returns?

DXJ currently has the higher Sharpe Ratio (3.11 vs 1.65), 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.