DXJ vs. SMH

Last updated Jun 13, 2026

DXJ (WisdomTree Japan Hedged Equity Fund) and SMH (VanEck Semiconductor ETF) are both exchange-traded funds - DXJ is a Japan Equities fund tracking the WisdomTree Japan Hedged Equity Index, while SMH is a Semiconductors fund tracking the MVIS US Listed Semiconductor 25 Index. Both are passively managed. Over the past 10 years, DXJ returned 18.72%/yr vs 37.49%/yr for SMH. A 0.52 correlation means they provide meaningful diversification when combined. DXJ charges 0.48%/yr vs 0.35%/yr for SMH.

Performance

DXJ vs. SMH - Performance Comparison

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

Returns By Period

In the year-to-date period, DXJ achieves a 18.74% return, which is significantly lower than SMH's 72.15% return. Over the past 10 years, DXJ has underperformed SMH with an annualized return of 18.72%, while SMH has yielded a comparatively higher 37.49% annualized return.

DXJ

• 1D: 0.74%
• 1M: -0.20%
• YTD: 18.74%
• 6M: 19.84%
• 1Y: 53.35%
• 3Y*: 30.91%
• 5Y*: 26.01%
• 10Y*: 18.72%

SMH

• 1D: 1.72%
• 1M: 8.30%
• YTD: 72.15%
• 6M: 75.62%
• 1Y: 136.32%
• 3Y*: 60.05%
• 5Y*: 38.42%
• 10Y*: 37.49%

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

DXJ vs. SMH - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
DXJ WisdomTree Japan Hedged Equity Fund	18.74%	32.78%	29.83%	42.04%	5.96%	17.99%	3.94%	18.94%	-19.78%	22.81%
SMH VanEck Semiconductor ETF	72.15%	49.17%	39.10%	73.38%	-33.53%	42.13%	55.53%	64.45%	-9.05%	38.48%

Correlation

The correlation between DXJ and SMH is 0.45, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.45
Correlation (3Y) Calculated over the trailing 3-year period	0.43
Correlation (5Y) Calculated over the trailing 5-year period	0.50
Correlation (10Y) Calculated over the trailing 10-year period	0.52
Correlation (All Time) Calculated using the full available price history since Jun 16, 2006	0.52

The correlation between DXJ and SMH has been stable across timeframes, ranging from 0.43 to 0.52 - a consistent structural relationship.

DXJ vs. SMH - Sectors Allocation Comparison

Sectors	DXJ	SMH
Industrials	27.4%	-
Financial Services	18.3%	-
Consumer Cyclical	15.6%	-
Technology	12.9%	100.0%
Basic Materials	8.5%	-
Healthcare	6.8%	-
Consumer Defensive	4.7%	-
Communication Services	2.7%	-
Energy	1.7%	-
Utilities	0.1%	-
Real Estate	-	-

Return for Risk

DXJ vs. SMH — Risk / Return Rank

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

DXJ

DXJ Risk / Return Rank: 92
DXJ Sharpe Ratio Rank: 93
DXJ Sortino Ratio Rank: 93
DXJ Omega Ratio Rank: 92
DXJ Calmar Ratio Rank: 90
DXJ Martin Ratio Rank: 91

SMH

SMH Risk / Return Rank: 96
SMH Sharpe Ratio Rank: 97
SMH Sortino Ratio Rank: 94
SMH Omega Ratio Rank: 94
SMH Calmar Ratio Rank: 97
SMH Martin Ratio Rank: 96

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. SMH - Risk-Adjusted Trends Comparison

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

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	DXJ	SMH	Difference
Sharpe ratio: Return per unit of total volatility	3.02	4.13	-1.11
Sortino ratio: Return per unit of downside risk	4.04	4.26	-0.22
Omega ratio: Gain probability vs. loss probability	1.54	1.60	-0.06
Calmar ratio: Return relative to maximum drawdown	4.88	9.18	-4.30
Martin ratio: Return relative to average drawdown	18.93	33.74	-14.81

DXJ vs. SMH - Sharpe Ratio Comparison

The current DXJ Sharpe Ratio is 3.02, which is comparable to the SMH Sharpe Ratio of 4.13. The chart below compares the historical Sharpe Ratios of DXJ and SMH, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

DXJ vs. SMH - Drawdown Comparison

The maximum DXJ drawdown since its inception was -49.63%, smaller than the maximum SMH drawdown of -84.96%. Use the drawdown chart below to compare losses from any high point for DXJ and SMH.

Drawdown Indicators

	DXJ	SMH	Difference
Max Drawdown Largest peak-to-trough decline	-49.63%	-84.96%	+35.33%
Max Drawdown (1Y) Largest decline over 1 year	-10.98%	-14.93%	+3.95%
Max Drawdown (3Y) Largest decline over 3 years	-22.19%	-35.74%	+13.55%
Max Drawdown (5Y) Largest decline over 5 years	-22.19%	-45.30%	+23.11%
Max Drawdown (10Y) Largest decline over 10 years	-39.14%	-45.30%	+6.16%
Current Drawdown Current decline from peak	-1.34%	-2.81%	+1.47%
Average Drawdown Average peak-to-trough decline	-14.32%	-41.04%	+26.72%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.83%	4.06%	-1.23%

Volatility

DXJ vs. SMH - Volatility Comparison

The current volatility for WisdomTree Japan Hedged Equity Fund (DXJ) is 4.64%, while VanEck Semiconductor ETF (SMH) has a volatility of 16.25%. This indicates that DXJ experiences smaller price fluctuations and is considered to be less risky than SMH based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DXJ	SMH	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.64%	16.25%	-11.61%
Volatility (6M) Calculated over the trailing 6-month period	13.56%	27.73%	-14.17%
Volatility (1Y) Calculated over the trailing 1-year period	17.73%	33.20%	-15.47%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.02%	35.47%	-16.45%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.17%	32.82%	-12.65%

DXJ vs. SMH - Expense Ratio Comparison

DXJ has a 0.48% expense ratio, which is higher than SMH's 0.35% expense ratio.

Dividends

DXJ vs. SMH - Dividend Comparison

DXJ's dividend yield for the trailing twelve months is around 1.09%, more than SMH's 0.18% 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%
SMH VanEck Semiconductor ETF	0.18%	0.31%	0.44%	0.60%	1.18%	0.51%	0.69%	1.50%	1.88%	1.43%	0.80%	2.14%

Frequently Asked Questions

Can I hold both DXJ and SMH in my portfolio?

DXJ and SMH have a correlation of 0.45, 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 SMH?

SMH has higher volatility (16.25%) compared to DXJ (4.64%). In terms of maximum drawdown, DXJ dropped -49.63% vs SMH's -84.96%.

Which ETF is better, DXJ or SMH?

On 10-year performance, SMH leads with 37.49% vs 18.72% for DXJ. On fees, SMH is cheaper at 0.35% per year. On volatility, DXJ has been the lower-risk option at 4.64%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DXJ or SMH?

Over the 10-year period, SMH has performed better with a 37.49% return vs 18.72%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DXJ or SMH?

SMH is cheaper with a 0.35% expense ratio, compared with 0.48% for DXJ.

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

DXJ has the higher dividend yield at 1.09%, compared with 0.18% for SMH.

What is the main difference between DXJ and SMH?

DXJ is categorized as Japan Equities, while SMH is Semiconductors. DXJ tracks WisdomTree Japan Hedged Equity Index, while SMH tracks MVIS US Listed Semiconductor 25 Index. They also come from different issuers: WisdomTree and VanEck. Their fees differ too: 0.48% for DXJ and 0.35% for SMH.

Which has better risk-adjusted returns?

SMH currently has the higher Sharpe Ratio (4.13 vs 3.02), 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.