DXJ vs. HEWJ

Last updated Jun 3, 2026

DXJ (WisdomTree Japan Hedged Equity Fund) and HEWJ (iShares Currency Hedged MSCI Japan ETF) are both Japan Equities funds - DXJ tracks the WisdomTree Japan Hedged Equity Index while HEWJ tracks the MSCI Japan 100% Hedged to USD Index. Both are passively managed. Over the past 10 years, DXJ returned 18.25%/yr vs 16.41%/yr for HEWJ. With a 0.96 correlation, they move nearly in lockstep. DXJ charges 0.48%/yr vs 0.49%/yr for HEWJ.

Performance

DXJ vs. HEWJ - Performance Comparison

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

Returns By Period

In the year-to-date period, DXJ achieves a 18.76% return, which is significantly lower than HEWJ's 19.76% return. Over the past 10 years, DXJ has outperformed HEWJ with an annualized return of 18.25%, while HEWJ has yielded a comparatively lower 16.41% annualized return.

DXJ

• 1D: 1.14%
• 1M: 6.07%
• YTD: 18.76%
• 6M: 23.03%
• 1Y: 52.60%
• 3Y*: 32.82%
• 5Y*: 26.08%
• 10Y*: 18.25%

HEWJ

• 1D: 0.72%
• 1M: 7.95%
• YTD: 19.76%
• 6M: 23.07%
• 1Y: 51.12%
• 3Y*: 28.87%
• 5Y*: 21.37%
• 10Y*: 16.41%

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

DXJ vs. HEWJ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
DXJ WisdomTree Japan Hedged Equity Fund	18.76%	32.78%	29.83%	42.04%	5.96%	17.99%	3.94%	18.94%	-19.78%	22.81%
HEWJ iShares Currency Hedged MSCI Japan ETF	19.76%	30.25%	24.80%	36.21%	-4.39%	12.79%	10.29%	20.79%	-14.68%	21.47%

Correlation

The correlation between DXJ and HEWJ is 0.94, 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	0.94
Correlation (3Y) Calculated over the trailing 3-year period	0.96
Correlation (5Y) Calculated over the trailing 5-year period	0.96
Correlation (10Y) Calculated over the trailing 10-year period	0.97
Correlation (All Time) Calculated using the full available price history since Feb 6, 2014	0.96

The correlation between DXJ and HEWJ has been stable across timeframes, ranging from 0.94 to 0.97 - a consistent structural relationship.

DXJ vs. HEWJ - Sectors Allocation Comparison

Sectors	DXJ	HEWJ
Industrials	27.4%	26.0%
Financial Services	18.3%	17.6%
Consumer Cyclical	15.6%	12.2%
Technology	12.9%	19.1%
Basic Materials	8.5%	3.0%
Healthcare	6.8%	6.2%
Consumer Defensive	4.7%	3.6%
Communication Services	2.7%	7.9%
Energy	1.7%	1.1%
Utilities	0.1%	1.1%
Real Estate	-	2.3%

Return for Risk

DXJ vs. HEWJ — 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: 87
DXJ Calmar Ratio Rank: 86
DXJ Martin Ratio Rank: 87

HEWJ

HEWJ Risk / Return Rank: 85
HEWJ Sharpe Ratio Rank: 83
HEWJ Sortino Ratio Rank: 84
HEWJ Omega Ratio Rank: 82
HEWJ Calmar Ratio Rank: 87
HEWJ Martin Ratio Rank: 88

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. HEWJ - Risk-Adjusted Trends Comparison

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

	DXJ	HEWJ	Difference
Sharpe ratio Return per unit of total volatility	3.03	2.75	+0.28
Sortino ratio Return per unit of downside risk	4.12	3.81	+0.31
Omega ratio Gain probability vs. loss probability	1.55	1.50	+0.05
Calmar ratio Return relative to maximum drawdown	4.83	5.00	-0.17
Martin ratio Return relative to average drawdown	18.88	19.65	-0.77
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. HEWJ - Sharpe Ratio Comparison

The current DXJ Sharpe Ratio is 3.03, which is comparable to the HEWJ Sharpe Ratio of 2.75. The chart below compares the historical Sharpe Ratios of DXJ and HEWJ, 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	HEWJ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.03	2.75	+0.28
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	1.38	1.13	+0.25
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.91	0.84	+0.07
Sharpe Ratio (All Time) Calculated using the full available price history	0.42	0.69	-0.27

Drawdowns

DXJ vs. HEWJ - Drawdown Comparison

The maximum DXJ drawdown since its inception was -49.63%, which is greater than HEWJ's maximum drawdown of -31.53%. Use the drawdown chart below to compare losses from any high point for DXJ and HEWJ.

Drawdown Indicators

	DXJ	HEWJ	Difference
Max Drawdown Largest peak-to-trough decline	-49.63%	-31.53%	-18.10%
Max Drawdown (1Y) Largest decline over 1 year	-10.98%	-10.37%	-0.61%
Max Drawdown (3Y) Largest decline over 3 years	-22.19%	-20.90%	-1.29%
Max Drawdown (5Y) Largest decline over 5 years	-22.19%	-20.90%	-1.29%
Max Drawdown (10Y) Largest decline over 10 years	-39.14%	-31.53%	-7.61%
Current Drawdown Current decline from peak	-0.36%	0.00%	-0.36%
Average Drawdown Average peak-to-trough decline	-14.34%	-6.62%	-7.72%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.81%	2.64%	+0.17%

Volatility

DXJ vs. HEWJ - Volatility Comparison

The current volatility for WisdomTree Japan Hedged Equity Fund (DXJ) is 3.59%, while iShares Currency Hedged MSCI Japan ETF (HEWJ) has a volatility of 3.94%. This indicates that DXJ 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

	DXJ	HEWJ	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.59%	3.94%	-0.35%
Volatility (6M) Calculated over the trailing 6-month period	13.11%	13.70%	-0.59%
Volatility (1Y) Calculated over the trailing 1-year period	17.43%	18.65%	-1.22%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.96%	19.04%	-0.08%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.18%	19.66%	+0.52%

DXJ vs. HEWJ - Expense Ratio Comparison

DXJ has a 0.48% expense ratio, which is lower than HEWJ's 0.49% expense ratio.

Dividends

DXJ vs. HEWJ - Dividend Comparison

DXJ's dividend yield for the trailing twelve months is around 1.09%, less than HEWJ's 4.26% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DXJ WisdomTree Japan Hedged Equity Fund	1.09%	1.29%	3.48%	3.44%	3.02%	2.64%	2.53%	2.47%	2.92%	2.30%	1.98%	5.95%
HEWJ iShares Currency Hedged MSCI Japan ETF	4.26%	5.10%	2.20%	2.02%	47.68%	2.03%	1.20%	2.78%	1.37%	1.21%	1.88%	3.25%

Frequently Asked Questions

Can I hold both DXJ and HEWJ in my portfolio?

With a correlation of 0.94, DXJ and HEWJ move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, DXJ or HEWJ?

HEWJ has higher volatility (3.94%) compared to DXJ (3.59%). In terms of maximum drawdown, DXJ dropped -49.63% vs HEWJ's -31.53%.

Which ETF is better, DXJ or HEWJ?

On 10-year performance, DXJ leads with 18.25% vs 16.41% for HEWJ. On fees, DXJ is cheaper at 0.48% per year. On volatility, DXJ has been the lower-risk option at 3.59%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DXJ or HEWJ?

Over the 10-year period, DXJ has performed better with a 18.25% return vs 16.41%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DXJ or HEWJ?

DXJ is cheaper with a 0.48% expense ratio, compared with 0.49% for HEWJ.

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

HEWJ has the higher dividend yield at 4.26%, compared with 1.09% for DXJ.

What is the main difference between DXJ and HEWJ?

DXJ tracks WisdomTree Japan Hedged Equity Index, while HEWJ tracks MSCI Japan 100% Hedged to USD Index. They also come from different issuers: WisdomTree and iShares. Their fees differ too: 0.48% for DXJ and 0.49% for HEWJ.

Which has better risk-adjusted returns?

DXJ currently has the higher Sharpe Ratio (3.03 vs 2.75), 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.