DXJ vs. SPY

Last updated Jun 14, 2026

DXJ (WisdomTree Japan Hedged Equity Fund) and SPY (State Street SPDR S&P 500 ETF) are both exchange-traded funds - DXJ is a Japan Equities fund tracking the WisdomTree Japan Hedged Equity Index, while SPY is a S&P 500 fund tracking the S&P 500 Index. Both are passively managed. Over the past 10 years, DXJ returned 18.72%/yr vs 15.42%/yr for SPY. A 0.64 correlation means they provide meaningful diversification when combined. DXJ charges 0.48%/yr vs 0.09%/yr for SPY.

Performance

DXJ vs. SPY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in WisdomTree Japan Hedged Equity Fund (DXJ) and State Street SPDR S&P 500 ETF (SPY). 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 higher than SPY's 9.07% return. Over the past 10 years, DXJ has outperformed SPY with an annualized return of 18.72%, while SPY has yielded a comparatively lower 15.42% annualized return.

DXJ

• 1D: 0.74%
• 1M: -0.37%
• YTD: 18.74%
• 6M: 19.84%
• 1Y: 54.41%
• 3Y*: 30.91%
• 5Y*: 26.01%
• 10Y*: 18.72%

SPY

• 1D: 0.54%
• 1M: -0.86%
• YTD: 9.07%
• 6M: 9.42%
• 1Y: 25.67%
• 3Y*: 20.86%
• 5Y*: 13.36%
• 10Y*: 15.42%

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

DXJ vs. SPY - 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%
SPY State Street SPDR S&P 500 ETF	9.07%	17.72%	24.89%	26.18%	-18.18%	28.73%	18.33%	31.22%	-4.57%	21.71%

Correlation

The correlation between DXJ and SPY is 0.53, 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	0.53
Correlation (3Y) Calculated over the trailing 3-year period	0.53
Correlation (5Y) Calculated over the trailing 5-year period	0.59
Correlation (10Y) Calculated over the trailing 10-year period	0.63
Correlation (All Time) Calculated using the full available price history since Jun 16, 2006	0.64

The correlation between DXJ and SPY shifts across timeframes, from 0.53 (3 years) to 0.64 (all time), reflecting how their relationship changes across market environments.

DXJ vs. SPY - Sectors Allocation Comparison

Sectors	DXJ	SPY
Industrials	27.4%	7.8%
Financial Services	18.3%	11.1%
Consumer Cyclical	15.6%	9.9%
Technology	12.9%	39.0%
Basic Materials	8.5%	1.7%
Healthcare	6.8%	8.3%
Consumer Defensive	4.7%	4.5%
Communication Services	2.7%	10.6%
Energy	1.7%	3.1%
Utilities	0.1%	2.1%
Real Estate	-	1.8%

Return for Risk

DXJ vs. SPY — 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

SPY

SPY Risk / Return Rank: 70
SPY Sharpe Ratio Rank: 71
SPY Sortino Ratio Rank: 69
SPY Omega Ratio Rank: 71
SPY Calmar Ratio Rank: 63
SPY Martin Ratio Rank: 76

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. SPY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for WisdomTree Japan Hedged Equity Fund (DXJ) and State Street SPDR S&P 500 ETF (SPY). 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	SPY	Difference
Sharpe ratio: Return per unit of total volatility	3.02	1.98	+1.04
Sortino ratio: Return per unit of downside risk	4.04	2.68	+1.36
Omega ratio: Gain probability vs. loss probability	1.54	1.36	+0.18
Calmar ratio: Return relative to maximum drawdown	4.88	2.74	+2.14
Martin ratio: Return relative to average drawdown	18.93	12.39	+6.54

DXJ vs. SPY - Sharpe Ratio Comparison

The current DXJ Sharpe Ratio is 3.02, which is higher than the SPY Sharpe Ratio of 1.98. The chart below compares the historical Sharpe Ratios of DXJ and SPY, 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. SPY - Drawdown Comparison

The maximum DXJ drawdown since its inception was -49.63%, smaller than the maximum SPY drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for DXJ and SPY.

Drawdown Indicators

	DXJ	SPY	Difference
Max Drawdown Largest peak-to-trough decline	-49.63%	-55.19%	+5.56%
Max Drawdown (1Y) Largest decline over 1 year	-10.98%	-8.88%	-2.10%
Max Drawdown (3Y) Largest decline over 3 years	-22.19%	-18.76%	-3.43%
Max Drawdown (5Y) Largest decline over 5 years	-22.19%	-24.50%	+2.31%
Max Drawdown (10Y) Largest decline over 10 years	-39.14%	-33.72%	-5.42%
Current Drawdown Current decline from peak	-1.34%	-2.35%	+1.01%
Average Drawdown Average peak-to-trough decline	-14.32%	-9.04%	-5.28%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.83%	1.97%	+0.86%

Volatility

DXJ vs. SPY - Volatility Comparison

WisdomTree Japan Hedged Equity Fund (DXJ) has a higher volatility of 4.64% compared to State Street SPDR S&P 500 ETF (SPY) at 4.34%. This indicates that DXJ's price experiences larger fluctuations and is considered to be riskier than SPY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DXJ	SPY	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.64%	4.34%	+0.30%
Volatility (6M) Calculated over the trailing 6-month period	13.56%	9.58%	+3.98%
Volatility (1Y) Calculated over the trailing 1-year period	17.73%	12.29%	+5.44%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.02%	17.12%	+1.90%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.17%	17.96%	+2.21%

DXJ vs. SPY - Expense Ratio Comparison

DXJ has a 0.48% expense ratio, which is higher than SPY's 0.09% expense ratio.

Dividends

DXJ vs. SPY - Dividend Comparison

DXJ's dividend yield for the trailing twelve months is around 1.09%, more than SPY's 1.00% 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%
SPY State Street SPDR S&P 500 ETF	1.00%	1.07%	1.21%	1.40%	1.65%	1.20%	1.52%	1.75%	2.04%	1.80%	2.03%	2.06%

Frequently Asked Questions

Can I hold both DXJ and SPY in my portfolio?

DXJ and SPY have a correlation of 0.53, 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 SPY?

DXJ has higher volatility (4.64%) compared to SPY (4.34%). In terms of maximum drawdown, DXJ dropped -49.63% vs SPY's -55.19%.

Which ETF is better, DXJ or SPY?

On 10-year performance, DXJ leads with 18.72% vs 15.42% for SPY. On fees, SPY is cheaper at 0.09% per year. On volatility, SPY has been the lower-risk option at 4.34%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DXJ or SPY?

Over the 10-year period, DXJ has performed better with a 18.72% return vs 15.42%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DXJ or SPY?

SPY is cheaper with a 0.09% expense ratio, compared with 0.48% for DXJ.

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

DXJ has the higher dividend yield at 1.09%, compared with 1.00% for SPY.

What is the main difference between DXJ and SPY?

DXJ is categorized as Japan Equities, while SPY is S&P 500. DXJ tracks WisdomTree Japan Hedged Equity Index, while SPY tracks S&P 500 Index. They also come from different issuers: WisdomTree and State Street. Their fees differ too: 0.48% for DXJ and 0.09% for SPY.

Which has better risk-adjusted returns?

DXJ currently has the higher Sharpe Ratio (3.02 vs 1.98), 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.