HEDJ vs. HEZU

Last updated Aug 2, 2026

HEDJ (WisdomTree Europe Hedged Equity Fund) and HEZU (iShares Currency Hedged MSCI Eurozone ETF) are both Europe Equities funds - HEDJ tracks the WisdomTree Europe Hedged Equity Index while HEZU tracks the MSCI EMU 100% USD Hedged Index. Both are passively managed. Over the past 10 years, HEDJ returned 10.96%/yr vs 12.59%/yr for HEZU. Their 0.96 correlation means they have historically moved very closely together. HEDJ charges 0.58%/yr vs 0.52%/yr for HEZU.

Performance

HEDJ vs. HEZU - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in WisdomTree Europe Hedged Equity Fund (HEDJ) and iShares Currency Hedged MSCI Eurozone ETF (HEZU). 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 lower than HEZU's 13.74% return. Over the past 10 years, HEDJ has underperformed HEZU with an annualized return of 10.96%, while HEZU has yielded a comparatively higher 12.59% 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%

HEZU

• 1D: -0.23%
• 1M: -0.42%
• 6M: 9.99%
• YTD: 13.74%
• 1Y: 27.06%
• 3Y*: 18.00%
• 5Y*: 13.04%
• 10Y*: 12.59%
• ALL TIME*: 10.94%

*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)
HEDJ WisdomTree Europe Hedged Equity Fund	$3.72M	$3.36M	$5.37M
HEZU iShares Currency Hedged MSCI Eurozone ETF	$555.49K	$1.29M	$2.41M

HEDJ vs. HEZU - 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%
HEZU iShares Currency Hedged MSCI Eurozone ETF	13.74%	25.93%	10.63%	22.98%	-9.54%	23.51%	0.52%	29.48%	-10.23%	14.26%

Correlation

The correlation between HEDJ and HEZU is 0.92, meaning they have usually moved in the same direction, including during past declines.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.92
Correlation (3Y) Balances recent behavior with more history.	0.94
Correlation (5Y) Shows whether the relationship held over a longer period.	0.95
Correlation (10Y) Provides a long-term view across more market conditions.	0.96
Correlation (All Time) Calculated using the full available price history since Aug 7, 2014	0.96

The correlation between HEDJ and HEZU has been stable across timeframes, ranging from 0.92 to 0.96 - a consistent structural relationship.

HEDJ vs. HEZU - Sectors Allocation Comparison

Sectors	HEDJ	HEZU
Industrials	22.6%	20.5%
Financial Services	15.8%	24.7%
Technology	13.2%	16.8%
Consumer Cyclical	12.9%	7.9%
Consumer Defensive	12.7%	5.5%
Healthcare	7.9%	5.8%
Basic Materials	6.6%	3.9%
Communication Services	4.7%	3.9%
Energy	3.4%	3.5%
Real Estate	-	0.8%
Utilities	-	6.5%

Return for Risk

HEDJ vs. HEZU — 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

HEZU

HEZU Risk / Return Rank: 67
HEZU Sharpe Ratio Rank: 67
HEZU Sortino Ratio Rank: 68
HEZU Omega Ratio Rank: 66
HEZU Calmar Ratio Rank: 64
HEZU Martin Ratio Rank: 70

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. HEZU - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for WisdomTree Europe Hedged Equity Fund (HEDJ) and iShares Currency Hedged MSCI Eurozone ETF (HEZU). 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	HEZU	Difference
Sharpe ratio: Return per unit of total volatility	1.17	1.54	-0.37
Sortino ratio: Return per unit of downside risk	1.75	2.22	-0.47
Omega ratio: Gain probability vs. loss probability	1.22	1.28	-0.06
Calmar ratio: Return relative to maximum drawdown	1.54	2.21	-0.67
Martin ratio: Return relative to average drawdown	6.28	8.63	-2.35

HEDJ vs. HEZU - Sharpe Ratio Comparison

The current HEDJ Sharpe Ratio is 1.17, which is comparable to the HEZU Sharpe Ratio of 1.54. The chart below compares the historical Sharpe Ratios of HEDJ and HEZU, 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. HEZU - Drawdown Comparison

The maximum HEDJ drawdown since its inception was -38.18%, roughly equal to the maximum HEZU drawdown of -38.80%. Use the drawdown chart below to compare losses from any high point for HEDJ and HEZU.

Drawdown Indicators

	HEDJ	HEZU	Difference
Max Drawdown Largest peak-to-trough decline	-38.18%	-38.80%	+0.62%
Max Drawdown (1Y) Largest decline over 1 year	-11.90%	-10.95%	-0.95%
Max Drawdown (3Y) Largest decline over 3 years	-15.93%	-14.83%	-1.10%
Max Drawdown (5Y) Largest decline over 5 years	-22.17%	-22.79%	+0.62%
Max Drawdown (10Y) Largest decline over 10 years	-38.18%	-38.80%	+0.62%
Current Drawdown Current decline from peak	-1.22%	-1.27%	+0.05%
Average Drawdown Average peak-to-trough decline	-5.87%	-5.77%	-0.10%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.92%	2.81%	+0.11%

Volatility

HEDJ vs. HEZU - Volatility Comparison

WisdomTree Europe Hedged Equity Fund (HEDJ) and iShares Currency Hedged MSCI Eurozone ETF (HEZU) have volatilities of 4.39% and 4.25%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	HEDJ	HEZU	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.39%	4.25%	+0.14%
Volatility (6M) Calculated over the trailing 6-month period	13.20%	13.47%	-0.27%
Volatility (1Y) Calculated over the trailing 1-year period	15.74%	15.80%	-0.06%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.86%	16.61%	+0.25%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.15%	18.14%	+0.01%

HEDJ vs. HEZU - Expense Ratio Comparison

HEDJ has a 0.58% expense ratio, which is higher than HEZU's 0.52% expense ratio.

Dividends

HEDJ vs. HEZU - Dividend Comparison

HEDJ's dividend yield for the trailing twelve months is around 1.79%, less than HEZU's 2.57% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
HEZU iShares Currency Hedged MSCI Eurozone ETF	2.57%	2.92%	2.77%	2.52%	23.26%	2.25%	2.32%	5.40%	3.48%	1.92%	3.11%	2.68%

Frequently Asked Questions

Can I hold both HEDJ and HEZU in my portfolio?

With a correlation of 0.92, HEDJ and HEZU move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, HEDJ or HEZU?

HEDJ has higher volatility (4.39%) compared to HEZU (4.25%). In terms of maximum drawdown, HEDJ dropped -38.18% vs HEZU's -38.80%.

Which ETF is better, HEDJ or HEZU?

On 10-year performance, HEZU leads with 12.59% vs 10.96% for HEDJ. On fees, HEZU is cheaper at 0.52% per year. On volatility, HEZU has been the lower-risk option at 4.25%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, HEDJ or HEZU?

Over the 10-year period, HEZU has performed better with a 12.59% return vs 10.96%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, HEDJ or HEZU?

HEZU is cheaper with a 0.52% expense ratio, compared with 0.58% for HEDJ.

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

HEZU has the higher dividend yield at 2.57%, compared with 1.79% for HEDJ.

What is the main difference between HEDJ and HEZU?

HEDJ tracks WisdomTree Europe Hedged Equity Index, while HEZU tracks MSCI EMU 100% USD Hedged Index. They also come from different issuers: WisdomTree and iShares. Their fees differ too: 0.58% for HEDJ and 0.52% for HEZU.

Which has better risk-adjusted returns?

HEZU currently has the higher Sharpe Ratio (1.54 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.