DXJ vs. QQQ

Last updated Jun 3, 2026

DXJ (WisdomTree Japan Hedged Equity Fund) and QQQ (Invesco QQQ ETF) are both exchange-traded funds - DXJ is a Japan Equities fund tracking the WisdomTree Japan Hedged Equity Index, while QQQ is a Nasdaq-100 fund tracking the NASDAQ-100 Index. Both are passively managed. Over the past 10 years, DXJ returned 18.25%/yr vs 21.97%/yr for QQQ. A 0.57 correlation means they provide meaningful diversification when combined. DXJ charges 0.48%/yr vs 0.18%/yr for QQQ.

Performance

DXJ vs. QQQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in WisdomTree Japan Hedged Equity Fund (DXJ) and Invesco QQQ ETF (QQQ). 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 QQQ's 21.62% return. Over the past 10 years, DXJ has underperformed QQQ with an annualized return of 18.25%, while QQQ has yielded a comparatively higher 21.97% 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%

QQQ

• 1D: 0.46%
• 1M: 10.68%
• YTD: 21.62%
• 6M: 20.27%
• 1Y: 43.30%
• 3Y*: 28.89%
• 5Y*: 18.43%
• 10Y*: 21.97%

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

DXJ vs. QQQ - 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%
QQQ Invesco QQQ ETF	21.62%	20.77%	25.58%	54.86%	-32.58%	27.42%	48.62%	38.96%	-0.13%	32.66%

Correlation

The correlation between DXJ and QQQ is 0.47, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.47
Correlation (3Y) Calculated over the trailing 3-year period	0.47
Correlation (5Y) Calculated over the trailing 5-year period	0.52
Correlation (10Y) Calculated over the trailing 10-year period	0.54
Correlation (All Time) Calculated using the full available price history since Jun 19, 2006	0.57

The correlation between DXJ and QQQ shifts across timeframes, from 0.47 (1 year) to 0.57 (all time), reflecting how their relationship changes across market environments.

DXJ vs. QQQ - Sectors Allocation Comparison

Sectors	DXJ	QQQ
Industrials	27.4%	2.8%
Financial Services	18.3%	0.2%
Consumer Cyclical	15.6%	12.3%
Technology	12.9%	53.8%
Basic Materials	8.5%	1.1%
Healthcare	6.8%	4.2%
Consumer Defensive	4.7%	7.7%
Communication Services	2.7%	15.8%
Energy	1.7%	0.6%
Utilities	0.1%	1.4%
Real Estate	-	0.1%

Return for Risk

DXJ vs. QQQ — 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

QQQ

QQQ Risk / Return Rank: 77
QQQ Sharpe Ratio Rank: 83
QQQ Sortino Ratio Rank: 78
QQQ Omega Ratio Rank: 77
QQQ Calmar Ratio Rank: 73
QQQ Martin Ratio Rank: 74

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. QQQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for WisdomTree Japan Hedged Equity Fund (DXJ) and Invesco QQQ ETF (QQQ). 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	QQQ	Difference
Sharpe ratio Return per unit of total volatility	3.03	2.73	+0.30
Sortino ratio Return per unit of downside risk	4.12	3.55	+0.57
Omega ratio Gain probability vs. loss probability	1.55	1.47	+0.08
Calmar ratio Return relative to maximum drawdown	4.83	3.71	+1.11
Martin ratio Return relative to average drawdown	18.88	14.30	+4.58
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. QQQ - Sharpe Ratio Comparison

The current DXJ Sharpe Ratio is 3.03, which is comparable to the QQQ Sharpe Ratio of 2.73. The chart below compares the historical Sharpe Ratios of DXJ and QQQ, 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	QQQ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.03	2.73	+0.30
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	1.38	0.83	+0.55
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.91	0.99	-0.08
Sharpe Ratio (All Time) Calculated using the full available price history	0.42	0.41	+0.01

Drawdowns

DXJ vs. QQQ - Drawdown Comparison

The maximum DXJ drawdown since its inception was -49.63%, smaller than the maximum QQQ drawdown of -82.97%. Use the drawdown chart below to compare losses from any high point for DXJ and QQQ.

Drawdown Indicators

	DXJ	QQQ	Difference
Max Drawdown Largest peak-to-trough decline	-49.63%	-82.97%	+33.34%
Max Drawdown (1Y) Largest decline over 1 year	-10.98%	-11.96%	+0.98%
Max Drawdown (3Y) Largest decline over 3 years	-22.19%	-22.77%	+0.58%
Max Drawdown (5Y) Largest decline over 5 years	-22.19%	-35.12%	+12.93%
Max Drawdown (10Y) Largest decline over 10 years	-39.14%	-35.12%	-4.02%
Current Drawdown Current decline from peak	-0.36%	0.00%	-0.36%
Average Drawdown Average peak-to-trough decline	-14.34%	-32.79%	+18.45%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.81%	3.11%	-0.30%

Volatility

DXJ vs. QQQ - Volatility Comparison

The current volatility for WisdomTree Japan Hedged Equity Fund (DXJ) is 3.59%, while Invesco QQQ ETF (QQQ) has a volatility of 4.48%. This indicates that DXJ experiences smaller price fluctuations and is considered to be less risky than QQQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DXJ	QQQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.59%	4.48%	-0.89%
Volatility (6M) Calculated over the trailing 6-month period	13.11%	12.11%	+1.00%
Volatility (1Y) Calculated over the trailing 1-year period	17.43%	15.95%	+1.48%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.96%	22.39%	-3.43%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.18%	22.30%	-2.12%

DXJ vs. QQQ - Expense Ratio Comparison

DXJ has a 0.48% expense ratio, which is higher than QQQ's 0.18% expense ratio.

Dividends

DXJ vs. QQQ - Dividend Comparison

DXJ's dividend yield for the trailing twelve months is around 1.09%, more than QQQ's 0.38% 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%
QQQ Invesco QQQ ETF	0.38%	0.45%	0.56%	0.62%	0.80%	0.43%	0.55%	0.74%	0.91%	0.84%	1.06%	0.99%

Frequently Asked Questions

Can I hold both DXJ and QQQ in my portfolio?

DXJ and QQQ have a correlation of 0.47, 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 QQQ?

QQQ has higher volatility (4.48%) compared to DXJ (3.59%). In terms of maximum drawdown, DXJ dropped -49.63% vs QQQ's -82.97%.

Which ETF is better, DXJ or QQQ?

On 10-year performance, QQQ leads with 21.97% vs 18.25% for DXJ. On fees, QQQ is cheaper at 0.18% 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 QQQ?

Over the 10-year period, QQQ has performed better with a 21.97% return vs 18.25%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DXJ or QQQ?

QQQ is cheaper with a 0.18% expense ratio, compared with 0.48% for DXJ.

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

DXJ has the higher dividend yield at 1.09%, compared with 0.38% for QQQ.

What is the main difference between DXJ and QQQ?

DXJ is categorized as Japan Equities, while QQQ is Nasdaq-100. DXJ tracks WisdomTree Japan Hedged Equity Index, while QQQ tracks NASDAQ-100 Index. They also come from different issuers: WisdomTree and Invesco. Their fees differ too: 0.48% for DXJ and 0.18% for QQQ.

Which has better risk-adjusted returns?

DXJ currently has the higher Sharpe Ratio (3.03 vs 2.73), 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.