FESM vs. DXJ

Last updated Jun 14, 2026

FESM (Fidelity Enhanced Small Cap ETF) and DXJ (WisdomTree Japan Hedged Equity Fund) are both exchange-traded funds - FESM is a Small Cap Blend Equities fund actively managed by Fidelity, while DXJ is a Japan Equities fund tracking the WisdomTree Japan Hedged Equity Index. FESM is actively managed, while DXJ is passively managed. Over the past year, FESM returned 51.99% vs 54.41% for DXJ. At a 0.50 correlation, their price movements are largely independent. FESM charges 0.28%/yr vs 0.48%/yr for DXJ.

Performance

FESM vs. DXJ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Fidelity Enhanced Small Cap ETF (FESM) 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, FESM achieves a 22.93% return, which is significantly higher than DXJ's 18.74% return.

FESM

• 1D: 1.00%
• 1M: 6.63%
• YTD: 22.93%
• 6M: 20.18%
• 1Y: 51.99%
• 3Y*: —
• 5Y*: —
• 10Y*: —

DXJ

• 1D: 0.74%
• 1M: 0.35%
• YTD: 18.74%
• 6M: 19.84%
• 1Y: 54.41%
• 3Y*: 30.91%
• 5Y*: 26.01%
• 10Y*: 18.72%

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

FESM vs. DXJ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
FESM Fidelity Enhanced Small Cap ETF	22.93%	17.88%	16.22%	12.09%
DXJ WisdomTree Japan Hedged Equity Fund	18.74%	32.78%	29.83%	-2.11%

Correlation

The correlation between FESM and DXJ 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 (All Time) Calculated using the full available price history since Nov 20, 2023	0.50

The correlation between FESM and DXJ has been stable across timeframes, ranging from 0.50 to 0.53 - a consistent structural relationship.

FESM vs. DXJ - Sectors Allocation Comparison

Sectors	FESM	DXJ
Technology	23.3%	12.9%
Industrials	18.5%	27.4%
Healthcare	16.1%	6.8%
Financial Services	14.6%	18.3%
Consumer Cyclical	7.7%	15.6%
Energy	5.9%	1.7%
Basic Materials	4.0%	8.5%
Real Estate	3.9%	-
Communication Services	3.1%	2.7%
Utilities	1.8%	0.1%
Consumer Defensive	1.1%	4.7%

Return for Risk

FESM vs. DXJ — Risk / Return Rank

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

FESM

FESM Risk / Return Rank: 87
FESM Sharpe Ratio Rank: 88
FESM Sortino Ratio Rank: 86
FESM Omega Ratio Rank: 81
FESM Calmar Ratio Rank: 90
FESM Martin Ratio Rank: 89

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

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.

FESM vs. DXJ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Fidelity Enhanced Small Cap ETF (FESM) 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.

	FESM	DXJ	Difference
Sharpe ratio: Return per unit of total volatility	2.53	3.02	-0.49
Sortino ratio: Return per unit of downside risk	3.37	4.04	-0.67
Omega ratio: Gain probability vs. loss probability	1.41	1.54	-0.13
Calmar ratio: Return relative to maximum drawdown	4.85	4.88	-0.04
Martin ratio: Return relative to average drawdown	17.47	18.93	-1.46

FESM vs. DXJ - Sharpe Ratio Comparison

The current FESM Sharpe Ratio is 2.53, which is comparable to the DXJ Sharpe Ratio of 3.02. The chart below compares the historical Sharpe Ratios of FESM 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

FESM vs. DXJ - Drawdown Comparison

The maximum FESM drawdown since its inception was -26.93%, smaller than the maximum DXJ drawdown of -49.63%. Use the drawdown chart below to compare losses from any high point for FESM and DXJ.

Drawdown Indicators

	FESM	DXJ	Difference
Max Drawdown Largest peak-to-trough decline	-26.93%	-49.63%	+22.70%
Max Drawdown (1Y) Largest decline over 1 year	-10.18%	-10.98%	+0.80%
Max Drawdown (3Y) Largest decline over 3 years	—	-22.19%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-22.19%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-39.14%	—
Current Drawdown Current decline from peak	0.00%	-1.34%	+1.34%
Average Drawdown Average peak-to-trough decline	-4.75%	-14.32%	+9.57%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.83%	2.83%	0.00%

Volatility

FESM vs. DXJ - Volatility Comparison

Fidelity Enhanced Small Cap ETF (FESM) has a higher volatility of 6.80% compared to WisdomTree Japan Hedged Equity Fund (DXJ) at 4.64%. This indicates that FESM's price experiences larger fluctuations and is considered to be riskier than DXJ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FESM	DXJ	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.80%	4.64%	+2.16%
Volatility (6M) Calculated over the trailing 6-month period	14.05%	13.56%	+0.49%
Volatility (1Y) Calculated over the trailing 1-year period	19.50%	17.73%	+1.77%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.35%	19.02%	+2.33%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.35%	20.17%	+1.18%

FESM vs. DXJ - Expense Ratio Comparison

FESM has a 0.28% expense ratio, which is lower than DXJ's 0.48% expense ratio.

Dividends

FESM vs. DXJ - Dividend Comparison

FESM's dividend yield for the trailing twelve months is around 0.52%, less than DXJ's 1.09% 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%
FESM Fidelity Enhanced Small Cap ETF	0.52%	0.82%	1.08%	0.06%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both FESM and DXJ in my portfolio?

FESM and DXJ 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, FESM or DXJ?

FESM has higher volatility (6.80%) compared to DXJ (4.64%). In terms of maximum drawdown, FESM dropped -26.93% vs DXJ's -49.63%.

Which ETF is better, FESM or DXJ?

On 1-year performance, DXJ leads with 54.41% vs 51.99% for FESM. On fees, FESM is cheaper at 0.28% 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, FESM or DXJ?

Over the 1-year period, DXJ has performed better with a 54.41% return vs 51.99%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FESM or DXJ?

FESM is cheaper with a 0.28% expense ratio, compared with 0.48% for DXJ.

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

DXJ has the higher dividend yield at 1.09%, compared with 0.52% for FESM.

What is the main difference between FESM and DXJ?

FESM is categorized as Small Cap Blend Equities, while DXJ is Japan Equities. They also come from different issuers: Fidelity and WisdomTree. Their fees differ too: 0.28% for FESM and 0.48% for DXJ.

Which has better risk-adjusted returns?

DXJ currently has the higher Sharpe Ratio (3.02 vs 2.53), 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.