EPP vs. DXJ

Last updated Jul 14, 2026

EPP (iShares MSCI Pacific ex Japan ETF) and DXJ (WisdomTree Japan Hedged Equity Fund) are both exchange-traded funds - EPP is a Asia Pacific Equities fund tracking the MSCI Pacific ex-Japan Index, while DXJ is a Japan Equities fund tracking the WisdomTree Japan Hedged Equity Index. Both are passively managed. Over the past 10 years, EPP returned 7.03%/yr vs 18.62%/yr for DXJ. A 0.58 correlation means they provide meaningful diversification when combined. Both charge a 0.48% expense ratio.

Performance

EPP vs. DXJ - Performance Comparison

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

Returns By Period

In the year-to-date period, EPP achieves a 9.21% return, which is significantly lower than DXJ's 22.23% return. Over the past 10 years, EPP has underperformed DXJ with an annualized return of 7.03%, while DXJ has yielded a comparatively higher 18.62% annualized return.

EPP

• 1D: -0.57%
• 1M: 0.54%
• 6M: 6.84%
• YTD: 9.21%
• 1Y: 13.54%
• 3Y*: 11.81%
• 5Y*: 5.26%
• 10Y*: 7.03%

DXJ

• 1D: -0.98%
• 1M: 2.95%
• 6M: 14.85%
• YTD: 22.23%
• 1Y: 54.82%
• 3Y*: 32.72%
• 5Y*: 27.03%
• 10Y*: 18.62%

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

EPP vs. DXJ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
EPP iShares MSCI Pacific ex Japan ETF	9.21%	19.70%	4.76%	5.76%	-6.59%	4.26%	6.04%	18.30%	-10.78%	26.05%
DXJ WisdomTree Japan Hedged Equity Fund	22.23%	32.78%	29.83%	42.04%	5.96%	17.99%	3.94%	18.94%	-19.78%	22.81%

Correlation

The correlation between EPP and DXJ is 0.49, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.49
Correlation (3Y) Calculated over the trailing 3-year period	0.44
Correlation (5Y) Calculated over the trailing 5-year period	0.52
Correlation (10Y) Calculated over the trailing 10-year period	0.56
Correlation (All Time) Calculated using the full available price history since Jun 16, 2006	0.58

The correlation between EPP and DXJ shifts across timeframes, from 0.44 (3 years) to 0.58 (all time), reflecting how their relationship changes across market environments.

EPP vs. DXJ - Sectors Allocation Comparison

Sectors	EPP	DXJ
Financial Services	44.9%	18.3%
Basic Materials	17.0%	8.5%
Industrials	8.5%	27.4%
Real Estate	7.4%	-
Consumer Cyclical	6.2%	15.5%
Utilities	3.5%	0.1%
Healthcare	3.3%	6.8%
Consumer Defensive	2.9%	4.7%
Energy	2.7%	1.7%
Communication Services	2.6%	2.3%
Technology	1.0%	13.4%

Return for Risk

EPP vs. DXJ — Risk / Return Rank

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

EPP

EPP Risk / Return Rank: 33
EPP Sharpe Ratio Rank: 31
EPP Sortino Ratio Rank: 30
EPP Omega Ratio Rank: 30
EPP Calmar Ratio Rank: 38
EPP Martin Ratio Rank: 36

DXJ

DXJ Risk / Return Rank: 94
DXJ Sharpe Ratio Rank: 95
DXJ Sortino Ratio Rank: 94
DXJ Omega Ratio Rank: 94
DXJ Calmar Ratio Rank: 93
DXJ Martin Ratio Rank: 93

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.

EPP vs. DXJ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI Pacific ex Japan ETF (EPP) and WisdomTree Japan Hedged Equity Fund (DXJ). 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.

	EPP	DXJ	Difference
Sharpe ratio: Return per unit of total volatility	0.90	3.02	-2.11
Sortino ratio: Return per unit of downside risk	1.34	3.93	-2.59
Omega ratio: Gain probability vs. loss probability	1.17	1.54	-0.37
Calmar ratio: Return relative to maximum drawdown	1.55	5.02	-3.47
Martin ratio: Return relative to average drawdown	4.30	19.10	-14.80

EPP vs. DXJ - Sharpe Ratio Comparison

The current EPP Sharpe Ratio is 0.90, which is lower than the DXJ Sharpe Ratio of 3.02. The chart below compares the historical Sharpe Ratios of EPP and DXJ, 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

EPP vs. DXJ - Drawdown Comparison

The maximum EPP drawdown since its inception was -66.01%, which is greater than DXJ's maximum drawdown of -49.63%. Use the drawdown chart below to compare losses from any high point for EPP and DXJ.

Drawdown Indicators

	EPP	DXJ	Difference
Max Drawdown Largest peak-to-trough decline	-66.01%	-49.63%	-16.38%
Max Drawdown (1Y) Largest decline over 1 year	-8.79%	-10.98%	+2.19%
Max Drawdown (3Y) Largest decline over 3 years	-19.29%	-22.19%	+2.90%
Max Drawdown (5Y) Largest decline over 5 years	-24.55%	-22.19%	-2.36%
Max Drawdown (10Y) Largest decline over 10 years	-39.30%	-39.14%	-0.16%
Current Drawdown Current decline from peak	-3.11%	-2.62%	-0.49%
Average Drawdown Average peak-to-trough decline	-10.59%	-14.27%	+3.68%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.15%	2.88%	+0.27%

Volatility

EPP vs. DXJ - Volatility Comparison

The current volatility for iShares MSCI Pacific ex Japan ETF (EPP) is 3.96%, while WisdomTree Japan Hedged Equity Fund (DXJ) has a volatility of 6.56%. This indicates that EPP experiences smaller price fluctuations and is considered to be less risky than DXJ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	EPP	DXJ	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.96%	6.56%	-2.60%
Volatility (6M) Calculated over the trailing 6-month period	12.68%	14.47%	-1.79%
Volatility (1Y) Calculated over the trailing 1-year period	15.06%	18.30%	-3.24%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.50%	19.06%	-1.56%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.99%	19.93%	-0.94%

EPP vs. DXJ - Expense Ratio Comparison

Both EPP and DXJ have an expense ratio of 0.48%.

Dividends

EPP vs. DXJ - Dividend Comparison

EPP's dividend yield for the trailing twelve months is around 3.44%, more than DXJ's 0.96% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DXJ WisdomTree Japan Hedged Equity Fund	0.96%	1.29%	3.48%	3.44%	3.02%	2.64%	2.53%	2.47%	2.92%	2.30%	1.98%	5.95%
EPP iShares MSCI Pacific ex Japan ETF	3.44%	3.77%	3.81%	4.10%	4.37%	4.58%	2.28%	3.89%	5.00%	4.15%	3.96%	4.90%

Frequently Asked Questions

Can I hold both EPP and DXJ in my portfolio?

EPP and DXJ have a correlation of 0.49, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, EPP or DXJ?

DXJ has higher volatility (6.56%) compared to EPP (3.96%). In terms of maximum drawdown, EPP dropped -66.01% vs DXJ's -49.63%.

Which ETF is better, EPP or DXJ?

On 10-year performance, DXJ leads with 18.62% vs 7.03% for EPP. Both ETFs have the same 0.48% expense ratio. On volatility, EPP has been the lower-risk option at 3.96%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, EPP or DXJ?

Over the 10-year period, DXJ has performed better with a 18.62% return vs 7.03%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, EPP or DXJ?

EPP and DXJ have the same expense ratio: 0.48% per year.

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

EPP has the higher dividend yield at 3.44%, compared with 0.96% for DXJ.

What is the main difference between EPP and DXJ?

EPP is categorized as Asia Pacific Equities, while DXJ is Japan Equities. EPP tracks MSCI Pacific ex-Japan Index, while DXJ tracks WisdomTree Japan Hedged Equity Index. They also come from different issuers: iShares and WisdomTree.

Which has better risk-adjusted returns?

DXJ currently has the higher Sharpe Ratio (3.02 vs 0.90), 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.