HEDJ vs. DFE

Last updated Aug 2, 2026

HEDJ (WisdomTree Europe Hedged Equity Fund) and DFE (WisdomTree Europe SmallCap Dividend Fund) are both Europe Equities funds from WisdomTree - HEDJ tracks the WisdomTree Europe Hedged Equity Index while DFE tracks the WisdomTree Europe SmallCap Dividend Index. Both are passively managed. Over the past 10 years, HEDJ returned 10.96%/yr vs 7.77%/yr for DFE. Their 0.69 correlation means they have sometimes moved together and sometimes differently. Both charge a 0.58% expense ratio.

Performance

HEDJ vs. DFE - Performance Comparison

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

Returns By Period

In the year-to-date period, HEDJ achieves a 8.59% return, which is significantly higher than DFE's 7.42% return. Over the past 10 years, HEDJ has outperformed DFE with an annualized return of 10.96%, while DFE has yielded a comparatively lower 7.77% annualized return.

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%

DFE

• 1D: -0.38%
• 1M: 3.01%
• 6M: 3.22%
• YTD: 7.42%
• 1Y: 14.13%
• 3Y*: 14.41%
• 5Y*: 4.54%
• 10Y*: 7.77%
• ALL TIME*: 6.45%

*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)
DFE WisdomTree Europe SmallCap Dividend Fund	$212.25K	$423.32K	$471.65K
HEDJ WisdomTree Europe Hedged Equity Fund	$3.72M	$3.36M	$5.37M

HEDJ vs. DFE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
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%
DFE WisdomTree Europe SmallCap Dividend Fund	7.42%	32.85%	-0.61%	14.94%	-22.15%	18.44%	2.15%	27.15%	-21.23%	32.71%

Correlation

The correlation between HEDJ and DFE is 0.73, 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.	0.73
Correlation (3Y) Balances recent behavior with more history.	0.72
Correlation (5Y) Shows whether the relationship held over a longer period.	0.75
Correlation (10Y) Provides a long-term view across more market conditions.	0.73
Correlation (All Time) Calculated using the full available price history since Dec 31, 2009	0.69

The correlation between HEDJ and DFE has been stable across timeframes, ranging from 0.69 to 0.75 - a consistent structural relationship.

HEDJ vs. DFE - Sectors Allocation Comparison

Sectors	HEDJ	DFE
Industrials	22.6%	25.7%
Financial Services	15.8%	10.0%
Technology	13.2%	6.8%
Consumer Cyclical	12.9%	9.4%
Consumer Defensive	12.7%	3.5%
Healthcare	7.9%	3.4%
Basic Materials	6.6%	7.7%
Communication Services	4.7%	5.8%
Energy	3.4%	6.8%
Real Estate	-	6.5%
Utilities	-	3.5%

Return for Risk

HEDJ vs. DFE — Risk / Return Rank

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

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

DFE

DFE Risk / Return Rank: 36
DFE Sharpe Ratio Rank: 37
DFE Sortino Ratio Rank: 37
DFE Omega Ratio Rank: 35
DFE Calmar Ratio Rank: 36
DFE Martin Ratio Rank: 38

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.

HEDJ vs. DFE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for WisdomTree Europe Hedged Equity Fund (HEDJ) and WisdomTree Europe SmallCap Dividend Fund (DFE). 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.

	HEDJ	DFE	Difference
Sharpe ratio: Return per unit of total volatility	1.17	0.92	+0.25
Sortino ratio: Return per unit of downside risk	1.75	1.38	+0.37
Omega ratio: Gain probability vs. loss probability	1.22	1.17	+0.05
Calmar ratio: Return relative to maximum drawdown	1.54	1.21	+0.33
Martin ratio: Return relative to average drawdown	6.28	3.88	+2.40

HEDJ vs. DFE - Sharpe Ratio Comparison

The current HEDJ Sharpe Ratio is 1.17, which is comparable to the DFE Sharpe Ratio of 0.92. The chart below compares the historical Sharpe Ratios of HEDJ and DFE, 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

HEDJ vs. DFE - Drawdown Comparison

The maximum HEDJ drawdown since its inception was -38.18%, smaller than the maximum DFE drawdown of -69.38%. Use the drawdown chart below to compare losses from any high point for HEDJ and DFE.

Drawdown Indicators

	HEDJ	DFE	Difference
Max Drawdown Largest peak-to-trough decline	-38.18%	-69.38%	+31.20%
Max Drawdown (1Y) Largest decline over 1 year	-11.90%	-11.41%	-0.49%
Max Drawdown (3Y) Largest decline over 3 years	-15.93%	-13.86%	-2.07%
Max Drawdown (5Y) Largest decline over 5 years	-22.17%	-40.34%	+18.17%
Max Drawdown (10Y) Largest decline over 10 years	-38.18%	-49.66%	+11.48%
Current Drawdown Current decline from peak	-1.22%	-1.05%	-0.17%
Average Drawdown Average peak-to-trough decline	-5.87%	-17.62%	+11.75%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.92%	3.56%	-0.64%

Volatility

HEDJ vs. DFE - Volatility Comparison

WisdomTree Europe Hedged Equity Fund (HEDJ) has a higher volatility of 4.39% compared to WisdomTree Europe SmallCap Dividend Fund (DFE) at 4.06%. This indicates that HEDJ's price experiences larger fluctuations and is considered to be riskier than DFE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	HEDJ	DFE	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.39%	4.06%	+0.33%
Volatility (6M) Calculated over the trailing 6-month period	13.20%	12.82%	+0.38%
Volatility (1Y) Calculated over the trailing 1-year period	15.74%	15.15%	+0.59%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.86%	19.04%	-2.18%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.15%	19.20%	-1.05%

HEDJ vs. DFE - Expense Ratio Comparison

Both HEDJ and DFE have an expense ratio of 0.58%.

Dividends

HEDJ vs. DFE - Dividend Comparison

HEDJ's dividend yield for the trailing twelve months is around 1.79%, less than DFE's 3.95% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DFE WisdomTree Europe SmallCap Dividend Fund	3.95%	4.38%	4.93%	4.97%	5.84%	2.56%	2.43%	3.39%	4.97%	2.53%	4.05%	2.78%
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 HEDJ and DFE in my portfolio?

HEDJ and DFE have a correlation of 0.73, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, HEDJ or DFE?

HEDJ has higher volatility (4.39%) compared to DFE (4.06%). In terms of maximum drawdown, HEDJ dropped -38.18% vs DFE's -69.38%.

Which ETF is better, HEDJ or DFE?

On 10-year performance, HEDJ leads with 10.96% vs 7.77% for DFE. Both ETFs have the same 0.58% expense ratio. On volatility, DFE has been the lower-risk option at 4.06%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, HEDJ or DFE?

Over the 10-year period, HEDJ has performed better with a 10.96% return vs 7.77%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, HEDJ or DFE?

HEDJ and DFE have the same expense ratio: 0.58% per year.

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

DFE has the higher dividend yield at 3.95%, compared with 1.79% for HEDJ.

What is the main difference between HEDJ and DFE?

HEDJ tracks WisdomTree Europe Hedged Equity Index, while DFE tracks WisdomTree Europe SmallCap Dividend Index.

Which has better risk-adjusted returns?

HEDJ currently has the higher Sharpe Ratio (1.17 vs 0.92), 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.