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FLEH vs. HEWJ
Performance
Return for Risk
Drawdowns
Volatility
Dividends

FLEH vs. HEWJ

Last updated Jun 23, 2026

FLEH (Franklin FTSE Europe Hedged ETF) and HEWJ (iShares Currency Hedged MSCI Japan ETF) are both exchange-traded funds - FLEH is a Europe Equities fund tracking the FTSE Developed Europe RIC Capped Index, while HEWJ is a Japan Equities fund tracking the MSCI Japan 100% Hedged to USD Index. Both are passively managed. Over the past 5 years, FLEH returned 12.35%/yr vs 22.84%/yr for HEWJ. A 0.57 correlation means they provide meaningful diversification when combined. FLEH charges 0.09%/yr vs 0.49%/yr for HEWJ.

Performance

FLEH vs. HEWJ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Franklin FTSE Europe Hedged ETF (FLEH) and iShares Currency Hedged MSCI Japan ETF (HEWJ). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, FLEH achieves a 9.26% return, which is significantly lower than HEWJ's 26.51% return.

FLEH

1D
-0.30%
1M
3.52%
YTD
9.26%
6M
10.22%
1Y
23.73%
3Y*
18.17%
5Y*
12.35%
10Y*
—

HEWJ

1D
0.98%
1M
8.32%
YTD
26.51%
6M
27.05%
1Y
61.45%
3Y*
30.43%
5Y*
22.84%
10Y*
17.92%
*Multi-year figures are annualized to reflect compound growth (CAGR)

FLEH vs. HEWJ - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
FLEH
Franklin FTSE Europe Hedged ETF		9.26%41.56%2.26%16.21%-9.14%23.27%0.95%26.94%-8.54%-1.24%
HEWJ
iShares Currency Hedged MSCI Japan ETF		26.51%30.25%24.80%36.21%-4.39%12.79%10.29%20.79%-14.68%0.90%

Correlation

The correlation between FLEH and HEWJ is 0.55, 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

0.55

Correlation (3Y)
Calculated over the trailing 3-year period

0.49

Correlation (5Y)
Calculated over the trailing 5-year period

0.57

Correlation (All Time)
Calculated using the full available price history since Nov 6, 2017

0.58

The correlation between FLEH and HEWJ has been stable across timeframes, ranging from 0.49 to 0.57 - a consistent structural relationship.

FLEH vs. HEWJ - Sectors Allocation Comparison

Sectors
FLEH
HEWJ

Financial Services

16.0%
17.9%

Industrials

15.3%
22.8%

Healthcare

14.8%
5.7%

Consumer Defensive

12.1%
3.3%

Consumer Cyclical

10.8%
11.1%

Technology

7.5%
23.5%

Basic Materials

6.8%
3.9%

Energy

5.5%
0.9%

Utilities

4.0%
1.0%

Communication Services

3.4%
6.4%

Real Estate

1.3%
1.9%

Financial Services

FLEH
16.0%
HEWJ
17.9%

Industrials

FLEH
15.3%
HEWJ
22.8%

Healthcare

FLEH
14.8%
HEWJ
5.7%

Consumer Defensive

FLEH
12.1%
HEWJ
3.3%

Consumer Cyclical

FLEH
10.8%
HEWJ
11.1%

Technology

FLEH
7.5%
HEWJ
23.5%

Basic Materials

FLEH
6.8%
HEWJ
3.9%

Energy

FLEH
5.5%
HEWJ
0.9%

Utilities

FLEH
4.0%
HEWJ
1.0%

Communication Services

FLEH
3.4%
HEWJ
6.4%

Real Estate

FLEH
1.3%
HEWJ
1.9%

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

Franklin FTSE Europe Hedged ETF

iShares Currency Hedged MSCI Japan ETF

Often compared with FLEH:
FLEH vs. FLEEFLEH vs. GCCFLEH vs. PSKFLEH vs. PFFFLEH vs. VOOFLEH vs. VRPFLEH vs. BKLN
Often compared with HEWJ:
HEWJ vs. EWJHEWJ vs. EWJVHEWJ vs. DBJPHEWJ vs. FLJHHEWJ vs. HEFAHEWJ vs. DXJHEWJ vs. HEEM

Return for Risk

FLEH vs. HEWJ — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
FLEH
FLEH Risk / Return Rank: 3939
Overall Rank
FLEH Sharpe Ratio Rank: 4040
Sharpe Ratio Rank
FLEH Sortino Ratio Rank: 4040
Sortino Ratio Rank
FLEH Omega Ratio Rank: 4040
Omega Ratio Rank
FLEH Calmar Ratio Rank: 3636
Calmar Ratio Rank
FLEH Martin Ratio Rank: 4141
Martin Ratio Rank
HEWJ
HEWJ Risk / Return Rank: 9292
Overall Rank
HEWJ Sharpe Ratio Rank: 9393
Sharpe Ratio Rank
HEWJ Sortino Ratio Rank: 9292
Sortino Ratio Rank
HEWJ Omega Ratio Rank: 9191
Omega Ratio Rank
HEWJ Calmar Ratio Rank: 9393
Calmar Ratio Rank
HEWJ Martin Ratio Rank: 9393
Martin Ratio Rank
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.

FLEH vs. HEWJ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Franklin FTSE Europe Hedged ETF (FLEH) and iShares Currency Hedged MSCI Japan ETF (HEWJ). 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.

FLEHHEWJDifference
Sharpe ratioReturn per unit of total volatility
1.37
3.19

-1.82

Sortino ratioReturn per unit of downside risk
2.00
4.21

-2.21

Omega ratioGain probability vs. loss probability

1.25

1.57

-0.31

Calmar ratioReturn relative to maximum drawdown

1.78

5.95

-4.18

Martin ratioReturn relative to average drawdown

6.45

23.05

-16.59

FLEH vs. HEWJ - Sharpe Ratio Comparison

The current FLEH Sharpe Ratio is 1.37, which is lower than the HEWJ Sharpe Ratio of 3.19. The chart below compares the historical Sharpe Ratios of FLEH and HEWJ, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Drawdowns

FLEH vs. HEWJ - Drawdown Comparison

The maximum FLEH drawdown since its inception was -33.94%, which is greater than HEWJ's maximum drawdown of -31.53%. Use the drawdown chart below to compare losses from any high point for FLEH and HEWJ.

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Drawdown Indicators

FLEHHEWJDifference

Max Drawdown

Largest peak-to-trough decline

-33.94%

-31.53%

-2.41%

Max Drawdown (1Y)

Largest decline over 1 year

-13.41%

-10.37%

-3.04%

Max Drawdown (3Y)

Largest decline over 3 years

-15.67%

-20.90%

+5.23%

Max Drawdown (5Y)

Largest decline over 5 years

-18.67%

-20.90%

+2.23%

Max Drawdown (10Y)

Largest decline over 10 years

—

-31.53%

—

Current Drawdown

Current decline from peak

-0.30%

0.00%

-0.30%

Average Drawdown

Average peak-to-trough decline

-4.69%

-6.59%

+1.90%

Ulcer Index

Depth and duration of drawdowns from previous peaks

3.69%

2.67%

+1.02%

Volatility

FLEH vs. HEWJ - Volatility Comparison

The current volatility for Franklin FTSE Europe Hedged ETF (FLEH) is 5.05%, while iShares Currency Hedged MSCI Japan ETF (HEWJ) has a volatility of 6.25%. This indicates that FLEH experiences smaller price fluctuations and is considered to be less risky than HEWJ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

FLEHHEWJDifference

Volatility (1M)

Calculated over the trailing 1-month period

5.05%

6.25%

-1.20%

Volatility (6M)

Calculated over the trailing 6-month period

14.96%

14.70%

+0.26%

Volatility (1Y)

Calculated over the trailing 1-year period

17.47%

19.39%

-1.92%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

16.46%

19.19%

-2.73%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

18.27%

19.63%

-1.36%

FLEH vs. HEWJ - Expense Ratio Comparison

FLEH has a 0.09% expense ratio, which is lower than HEWJ's 0.49% expense ratio.

Dividends

FLEH vs. HEWJ - Dividend Comparison

FLEH's dividend yield for the trailing twelve months is around 1.06%, less than HEWJ's 4.03% yield.

PositionTTM20252024202320222021202020192018201720162015
FLEH
Franklin FTSE Europe Hedged ETF		1.06%2.22%3.18%3.25%21.45%3.03%1.94%6.06%12.17%0.07%0.00%0.00%
HEWJ
iShares Currency Hedged MSCI Japan ETF		4.03%5.10%2.20%2.02%47.68%2.03%1.20%2.78%1.37%1.21%1.88%3.25%

Frequently Asked Questions

FLEH and HEWJ have a correlation of 0.55, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

HEWJ has higher volatility (6.25%) compared to FLEH (5.05%). In terms of maximum drawdown, FLEH dropped -33.94% vs HEWJ's -31.53%.

On 5-year performance, HEWJ leads with 22.84% vs 12.35% for FLEH. On fees, FLEH is cheaper at 0.09% per year. On volatility, FLEH has been the lower-risk option at 5.05%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 5-year period, HEWJ has performed better with a 22.84% return vs 12.35%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

FLEH is cheaper with a 0.09% expense ratio, compared with 0.49% for HEWJ.

HEWJ has the higher dividend yield at 4.03%, compared with 1.06% for FLEH.

FLEH is categorized as Europe Equities, while HEWJ is Japan Equities. FLEH tracks FTSE Developed Europe RIC Capped Index, while HEWJ tracks MSCI Japan 100% Hedged to USD Index. They also come from different issuers: Franklin Templeton and iShares. Their fees differ too: 0.09% for FLEH and 0.49% for HEWJ.

HEWJ currently has the higher Sharpe Ratio (3.19 vs 1.37), 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.

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