FEP vs. HEDJ

Last updated Aug 2, 2026

FEP (First Trust Europe AlphaDEX Fund) and HEDJ (WisdomTree Europe Hedged Equity Fund) are both Europe Equities funds - FEP tracks the Defined Europe Index while HEDJ tracks the WisdomTree Europe Hedged Equity Index. Both are passively managed. Over the past 10 years, FEP returned 10.76%/yr vs 10.96%/yr for HEDJ. Their 0.72 correlation means they have sometimes moved together and sometimes differently. FEP charges 0.80%/yr vs 0.58%/yr for HEDJ.

Performance

FEP vs. HEDJ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Europe AlphaDEX Fund (FEP) and WisdomTree Europe Hedged Equity Fund (HEDJ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FEP achieves a 11.59% return, which is significantly higher than HEDJ's 8.59% return. Both investments have delivered pretty close results over the past 10 years, with FEP having a 10.76% annualized return and HEDJ not far ahead at 10.96%.

FEP

• 1D: -0.14%
• 1M: 2.41%
• 6M: 5.11%
• YTD: 11.59%
• 1Y: 28.08%
• 3Y*: 22.63%
• 5Y*: 10.19%
• 10Y*: 10.76%
• ALL TIME*: 7.19%

HEDJ

• 1D: -0.87%
• 1M: -0.79%
• 6M: 6.02%
• YTD: 8.59%
• 1Y: 21.05%
• 3Y*: 13.72%
• 5Y*: 10.78%
• 10Y*: 10.96%
• ALL TIME*: 8.89%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
FEP First Trust Europe AlphaDEX Fund	$974.88K	$1.10M	$1.43M
HEDJ WisdomTree Europe Hedged Equity Fund	$3.72M	$3.36M	$5.37M

FEP vs. HEDJ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FEP First Trust Europe AlphaDEX Fund	11.59%	55.72%	3.38%	16.85%	-22.97%	17.03%	4.12%	24.83%	-19.00%	36.27%
HEDJ WisdomTree Europe Hedged Equity Fund	8.59%	23.55%	5.28%	26.89%	-10.09%	23.54%	-3.35%	27.50%	-9.27%	13.51%

Correlation

The correlation between FEP and HEDJ is 0.77, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.77
Correlation (3Y) Balances recent behavior with more history.	0.77
Correlation (5Y) Shows whether the relationship held over a longer period.	0.79
Correlation (10Y) Provides a long-term view across more market conditions.	0.78
Correlation (All Time) Calculated using the full available price history since Apr 26, 2011	0.72

The correlation between FEP and HEDJ has been stable across timeframes, ranging from 0.72 to 0.79 - a consistent structural relationship.

FEP vs. HEDJ - Sectors Allocation Comparison

Sectors	FEP	HEDJ
Industrials	26.5%	22.6%
Consumer Cyclical	10.5%	12.9%
Basic Materials	10.5%	6.6%
Financial Services	10.4%	15.8%
Energy	9.8%	3.4%
Consumer Defensive	8.3%	12.7%
Utilities	7.0%	-
Healthcare	5.1%	7.9%
Real Estate	5.1%	-
Communication Services	3.6%	4.7%
Technology	3.2%	13.2%

Return for Risk

FEP vs. HEDJ — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

FEP

FEP Risk / Return Rank: 70
FEP Sharpe Ratio Rank: 72
FEP Sortino Ratio Rank: 71
FEP Omega Ratio Rank: 70
FEP Calmar Ratio Rank: 66
FEP Martin Ratio Rank: 70

HEDJ

HEDJ Risk / Return Rank: 48
HEDJ Sharpe Ratio Rank: 48
HEDJ Sortino Ratio Rank: 48
HEDJ Omega Ratio Rank: 47
HEDJ Calmar Ratio Rank: 43
HEDJ Martin Ratio Rank: 54

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

FEP vs. HEDJ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Europe AlphaDEX Fund (FEP) and WisdomTree Europe Hedged Equity Fund (HEDJ). 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.

	FEP	HEDJ	Difference
Sharpe ratio: Return per unit of total volatility	1.63	1.17	+0.46
Sortino ratio: Return per unit of downside risk	2.29	1.75	+0.55
Omega ratio: Gain probability vs. loss probability	1.29	1.22	+0.08
Calmar ratio: Return relative to maximum drawdown	2.28	1.54	+0.74
Martin ratio: Return relative to average drawdown	8.53	6.28	+2.25

FEP vs. HEDJ - Sharpe Ratio Comparison

The current FEP Sharpe Ratio is 1.63, which is higher than the HEDJ Sharpe Ratio of 1.17. The chart below compares the historical Sharpe Ratios of FEP and HEDJ, 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

FEP vs. HEDJ - Drawdown Comparison

The maximum FEP drawdown since its inception was -46.05%, which is greater than HEDJ's maximum drawdown of -38.18%. Use the drawdown chart below to compare losses from any high point for FEP and HEDJ.

Drawdown Indicators

	FEP	HEDJ	Difference
Max Drawdown Largest peak-to-trough decline	-46.05%	-38.18%	-7.87%
Max Drawdown (1Y) Largest decline over 1 year	-12.13%	-11.90%	-0.23%
Max Drawdown (3Y) Largest decline over 3 years	-15.83%	-15.93%	+0.10%
Max Drawdown (5Y) Largest decline over 5 years	-38.99%	-22.17%	-16.82%
Max Drawdown (10Y) Largest decline over 10 years	-46.05%	-38.18%	-7.87%
Current Drawdown Current decline from peak	-0.14%	-1.22%	+1.08%
Average Drawdown Average peak-to-trough decline	-11.92%	-5.87%	-6.05%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.24%	2.92%	+0.32%

Volatility

FEP vs. HEDJ - Volatility Comparison

The current volatility for First Trust Europe AlphaDEX Fund (FEP) is 3.97%, while WisdomTree Europe Hedged Equity Fund (HEDJ) has a volatility of 4.39%. This indicates that FEP experiences smaller price fluctuations and is considered to be less risky than HEDJ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FEP	HEDJ	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.97%	4.39%	-0.42%
Volatility (6M) Calculated over the trailing 6-month period	14.75%	13.20%	+1.55%
Volatility (1Y) Calculated over the trailing 1-year period	16.97%	15.74%	+1.23%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.67%	16.86%	+2.81%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.19%	18.15%	+2.04%

FEP vs. HEDJ - Expense Ratio Comparison

FEP has a 0.80% expense ratio, which is higher than HEDJ's 0.58% expense ratio.

Dividends

FEP vs. HEDJ - Dividend Comparison

FEP's dividend yield for the trailing twelve months is around 2.71%, more than HEDJ's 1.79% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FEP First Trust Europe AlphaDEX Fund	2.71%	3.33%	4.94%	3.27%	3.00%	3.49%	2.32%	2.63%	2.62%	1.65%	2.14%	2.20%
HEDJ WisdomTree Europe Hedged Equity Fund	1.79%	1.63%	3.28%	3.31%	2.83%	2.08%	2.65%	1.82%	2.73%	2.27%	2.74%	9.43%

Frequently Asked Questions

Can I hold both FEP and HEDJ in my portfolio?

FEP and HEDJ have a correlation of 0.77, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FEP or HEDJ?

HEDJ has higher volatility (4.39%) compared to FEP (3.97%). In terms of maximum drawdown, FEP dropped -46.05% vs HEDJ's -38.18%.

Which ETF is better, FEP or HEDJ?

On 10-year performance, HEDJ leads with 10.96% vs 10.76% for FEP. On fees, HEDJ is cheaper at 0.58% per year. On volatility, FEP has been the lower-risk option at 3.97%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FEP or HEDJ?

Over the 10-year period, HEDJ has performed better with a 10.96% return vs 10.76%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FEP or HEDJ?

HEDJ is cheaper with a 0.58% expense ratio, compared with 0.80% for FEP.

Which ETF pays a higher dividend yield, FEP or HEDJ?

FEP has the higher dividend yield at 2.71%, compared with 1.79% for HEDJ.

What is the main difference between FEP and HEDJ?

FEP tracks Defined Europe Index, while HEDJ tracks WisdomTree Europe Hedged Equity Index. They also come from different issuers: First Trust and WisdomTree. Their fees differ too: 0.80% for FEP and 0.58% for HEDJ.

Which has better risk-adjusted returns?

FEP currently has the higher Sharpe Ratio (1.63 vs 1.17), 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.