FLAX vs. DXJ

Last updated Jul 14, 2026

FLAX (Franklin FTSE Asia ex Japan ETF) and DXJ (WisdomTree Japan Hedged Equity Fund) are both exchange-traded funds - FLAX is a Asia Pacific Equities fund tracking the FTSE Asia ex Japan RIC Capped Index, while DXJ is a Japan Equities fund tracking the WisdomTree Japan Hedged Equity Index. Both are passively managed. Over the past 5 years, FLAX returned 6.84%/yr vs 27.03%/yr for DXJ. A 0.50 correlation means they provide meaningful diversification when combined. FLAX charges 0.19%/yr vs 0.48%/yr for DXJ.

Performance

FLAX vs. DXJ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Franklin FTSE Asia ex Japan ETF (FLAX) 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, FLAX achieves a 19.11% return, which is significantly lower than DXJ's 22.23% return.

FLAX

• 1D: -3.21%
• 1M: -4.39%
• 6M: 12.55%
• YTD: 19.11%
• 1Y: 37.22%
• 3Y*: 20.28%
• 5Y*: 6.84%
• 10Y*: —

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)

FLAX vs. DXJ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
FLAX Franklin FTSE Asia ex Japan ETF	19.11%	33.72%	9.82%	6.27%	-18.88%	-3.54%	24.17%	17.19%	-14.34%
DXJ WisdomTree Japan Hedged Equity Fund	22.23%	32.78%	29.83%	42.04%	5.96%	17.99%	3.94%	18.94%	-18.11%

Correlation

The correlation between FLAX and DXJ is 0.48, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.48
Correlation (3Y) Calculated over the trailing 3-year period	0.42
Correlation (5Y) Calculated over the trailing 5-year period	0.46
Correlation (All Time) Calculated using the full available price history since Feb 8, 2018	0.50

The correlation between FLAX and DXJ has been stable across timeframes, ranging from 0.42 to 0.50 - a consistent structural relationship.

FLAX vs. DXJ - Sectors Allocation Comparison

Sectors	FLAX	DXJ
Technology	46.4%	13.4%
Financial Services	15.6%	18.3%
Consumer Cyclical	9.1%	15.5%
Industrials	8.2%	27.4%
Communication Services	5.6%	2.3%
Basic Materials	3.6%	8.5%
Healthcare	2.9%	6.8%
Energy	2.5%	1.7%
Consumer Defensive	2.4%	4.7%
Utilities	1.9%	0.1%
Real Estate	1.8%	-

Return for Risk

FLAX vs. DXJ — Risk / Return Rank

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

FLAX

FLAX Risk / Return Rank: 65
FLAX Sharpe Ratio Rank: 62
FLAX Sortino Ratio Rank: 57
FLAX Omega Ratio Rank: 67
FLAX Calmar Ratio Rank: 72
FLAX Martin Ratio Rank: 68

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.

FLAX vs. DXJ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Franklin FTSE Asia ex Japan ETF (FLAX) 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.

	FLAX	DXJ	Difference
Sharpe ratio: Return per unit of total volatility	1.64	3.02	-1.38
Sortino ratio: Return per unit of downside risk	2.18	3.93	-1.75
Omega ratio: Gain probability vs. loss probability	1.32	1.54	-0.22
Calmar ratio: Return relative to maximum drawdown	2.88	5.02	-2.14
Martin ratio: Return relative to average drawdown	9.82	19.10	-9.28

FLAX vs. DXJ - Sharpe Ratio Comparison

The current FLAX Sharpe Ratio is 1.64, which is lower than the DXJ Sharpe Ratio of 3.02. The chart below compares the historical Sharpe Ratios of FLAX 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

FLAX vs. DXJ - Drawdown Comparison

The maximum FLAX drawdown since its inception was -42.51%, smaller than the maximum DXJ drawdown of -49.63%. Use the drawdown chart below to compare losses from any high point for FLAX and DXJ.

Drawdown Indicators

	FLAX	DXJ	Difference
Max Drawdown Largest peak-to-trough decline	-42.51%	-49.63%	+7.12%
Max Drawdown (1Y) Largest decline over 1 year	-12.99%	-10.98%	-2.01%
Max Drawdown (3Y) Largest decline over 3 years	-19.29%	-22.19%	+2.90%
Max Drawdown (5Y) Largest decline over 5 years	-37.08%	-22.19%	-14.89%
Max Drawdown (10Y) Largest decline over 10 years	—	-39.14%	—
Current Drawdown Current decline from peak	-9.62%	-2.62%	-7.00%
Average Drawdown Average peak-to-trough decline	-15.28%	-14.27%	-1.01%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.80%	2.88%	+0.92%

Volatility

FLAX vs. DXJ - Volatility Comparison

Franklin FTSE Asia ex Japan ETF (FLAX) has a higher volatility of 11.11% compared to WisdomTree Japan Hedged Equity Fund (DXJ) at 6.56%. This indicates that FLAX'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

	FLAX	DXJ	Difference
Volatility (1M) Calculated over the trailing 1-month period	11.11%	6.56%	+4.55%
Volatility (6M) Calculated over the trailing 6-month period	20.83%	14.47%	+6.36%
Volatility (1Y) Calculated over the trailing 1-year period	22.87%	18.30%	+4.57%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.82%	19.06%	+0.76%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.33%	19.93%	+0.40%

FLAX vs. DXJ - Expense Ratio Comparison

FLAX has a 0.19% expense ratio, which is lower than DXJ's 0.48% expense ratio.

Dividends

FLAX vs. DXJ - Dividend Comparison

FLAX's dividend yield for the trailing twelve months is around 2.10%, 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%
FLAX Franklin FTSE Asia ex Japan ETF	2.10%	2.37%	3.12%	2.20%	2.86%	2.38%	1.57%	2.23%	2.35%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both FLAX and DXJ in my portfolio?

FLAX and DXJ have a correlation of 0.48, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FLAX or DXJ?

FLAX has higher volatility (11.11%) compared to DXJ (6.56%). In terms of maximum drawdown, FLAX dropped -42.51% vs DXJ's -49.63%.

Which ETF is better, FLAX or DXJ?

On 5-year performance, DXJ leads with 27.03% vs 6.84% for FLAX. On fees, FLAX is cheaper at 0.19% per year. On volatility, DXJ has been the lower-risk option at 6.56%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FLAX or DXJ?

Over the 5-year period, DXJ has performed better with a 27.03% return vs 6.84%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FLAX or DXJ?

FLAX is cheaper with a 0.19% expense ratio, compared with 0.48% for DXJ.

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

FLAX has the higher dividend yield at 2.10%, compared with 0.96% for DXJ.

What is the main difference between FLAX and DXJ?

FLAX is categorized as Asia Pacific Equities, while DXJ is Japan Equities. FLAX tracks FTSE Asia ex Japan RIC Capped Index, while DXJ tracks WisdomTree Japan Hedged Equity Index. They also come from different issuers: Franklin Templeton and WisdomTree. Their fees differ too: 0.19% for FLAX and 0.48% for DXJ.

Which has better risk-adjusted returns?

DXJ currently has the higher Sharpe Ratio (3.02 vs 1.64), 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.