HEDJ vs. IEUS

Last updated Jun 24, 2026

HEDJ (WisdomTree Europe Hedged Equity Fund) and IEUS (iShares MSCI Europe Small-Cap ETF) are both Europe Equities funds - HEDJ tracks the WisdomTree Europe Hedged Equity Index while IEUS tracks the MSCI Europe Small Cap Index. Both are passively managed. Over the past 10 years, HEDJ returned 11.67%/yr vs 8.42%/yr for IEUS. A 0.70 correlation means they provide meaningful diversification when combined. HEDJ charges 0.58%/yr vs 0.40%/yr for IEUS.

Performance

HEDJ vs. IEUS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in WisdomTree Europe Hedged Equity Fund (HEDJ) and iShares MSCI Europe Small-Cap ETF (IEUS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, HEDJ achieves a 8.05% return, which is significantly higher than IEUS's 2.96% return. Over the past 10 years, HEDJ has outperformed IEUS with an annualized return of 11.67%, while IEUS has yielded a comparatively lower 8.42% annualized return.

HEDJ

• 1D: -1.17%
• 1M: 2.23%
• YTD: 8.05%
• 6M: 8.83%
• 1Y: 20.81%
• 3Y*: 15.42%
• 5Y*: 11.09%
• 10Y*: 11.67%

IEUS

• 1D: -1.36%
• 1M: -3.42%
• YTD: 2.96%
• 6M: 3.35%
• 1Y: 10.51%
• 3Y*: 13.92%
• 5Y*: 2.93%
• 10Y*: 8.42%

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

HEDJ vs. IEUS - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
HEDJ WisdomTree Europe Hedged Equity Fund	8.05%	23.55%	5.28%	26.89%	-10.09%	23.54%	-3.35%	27.50%	-9.27%	13.51%
IEUS iShares MSCI Europe Small-Cap ETF	2.96%	32.06%	-1.59%	17.34%	-27.07%	15.06%	12.99%	29.72%	-20.17%	35.04%

Correlation

The correlation between HEDJ and IEUS is 0.75, 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	0.75
Correlation (3Y) Calculated over the trailing 3-year period	0.73
Correlation (5Y) Calculated over the trailing 5-year period	0.77
Correlation (10Y) Calculated over the trailing 10-year period	0.74
Correlation (All Time) Calculated using the full available price history since Dec 31, 2009	0.70

The correlation between HEDJ and IEUS has been stable across timeframes, ranging from 0.70 to 0.77 - a consistent structural relationship.

HEDJ vs. IEUS - Sectors Allocation Comparison

Sectors	HEDJ	IEUS
Industrials	23.1%	26.6%
Financial Services	14.5%	15.0%
Consumer Cyclical	14.2%	12.1%
Consumer Defensive	9.7%	3.6%
Healthcare	7.9%	7.5%
Basic Materials	6.8%	7.4%
Communication Services	5.5%	4.5%
Technology	4.8%	7.9%
Energy	3.9%	4.8%
Real Estate	-	8.3%
Utilities	-	2.3%

Return for Risk

HEDJ vs. IEUS — Risk / Return Rank

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

HEDJ

HEDJ Risk / Return Rank: 40
HEDJ Sharpe Ratio Rank: 39
HEDJ Sortino Ratio Rank: 40
HEDJ Omega Ratio Rank: 39
HEDJ Calmar Ratio Rank: 37
HEDJ Martin Ratio Rank: 45

IEUS

IEUS Risk / Return Rank: 20
IEUS Sharpe Ratio Rank: 20
IEUS Sortino Ratio Rank: 19
IEUS Omega Ratio Rank: 19
IEUS Calmar Ratio Rank: 19
IEUS Martin Ratio Rank: 23

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.

HEDJ vs. IEUS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for WisdomTree Europe Hedged Equity Fund (HEDJ) and iShares MSCI Europe Small-Cap ETF (IEUS). 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	IEUS	Difference
Sharpe ratio: Return per unit of total volatility	1.33	0.65	+0.68
Sortino ratio: Return per unit of downside risk	1.98	1.03	+0.95
Omega ratio: Gain probability vs. loss probability	1.24	1.12	+0.12
Calmar ratio: Return relative to maximum drawdown	1.76	0.82	+0.93
Martin ratio: Return relative to average drawdown	7.14	2.79	+4.35

HEDJ vs. IEUS - Sharpe Ratio Comparison

The current HEDJ Sharpe Ratio is 1.33, which is higher than the IEUS Sharpe Ratio of 0.65. The chart below compares the historical Sharpe Ratios of HEDJ and IEUS, 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. IEUS - Drawdown Comparison

The maximum HEDJ drawdown since its inception was -38.18%, smaller than the maximum IEUS drawdown of -63.09%. Use the drawdown chart below to compare losses from any high point for HEDJ and IEUS.

Drawdown Indicators

	HEDJ	IEUS	Difference
Max Drawdown Largest peak-to-trough decline	-38.18%	-63.09%	+24.91%
Max Drawdown (1Y) Largest decline over 1 year	-11.90%	-12.81%	+0.91%
Max Drawdown (3Y) Largest decline over 3 years	-15.93%	-18.05%	+2.12%
Max Drawdown (5Y) Largest decline over 5 years	-22.17%	-44.86%	+22.69%
Max Drawdown (10Y) Largest decline over 10 years	-38.18%	-44.86%	+6.68%
Current Drawdown Current decline from peak	-1.38%	-4.49%	+3.11%
Average Drawdown Average peak-to-trough decline	-5.90%	-15.50%	+9.60%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.92%	3.78%	-0.86%

Volatility

HEDJ vs. IEUS - Volatility Comparison

WisdomTree Europe Hedged Equity Fund (HEDJ) and iShares MSCI Europe Small-Cap ETF (IEUS) have volatilities of 4.84% and 4.97%, 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	IEUS	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.84%	4.97%	-0.13%
Volatility (6M) Calculated over the trailing 6-month period	13.12%	13.68%	-0.56%
Volatility (1Y) Calculated over the trailing 1-year period	15.77%	16.26%	-0.49%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.85%	20.84%	-3.99%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.18%	20.10%	-1.92%

HEDJ vs. IEUS - Expense Ratio Comparison

HEDJ has a 0.58% expense ratio, which is higher than IEUS's 0.40% expense ratio.

Dividends

HEDJ vs. IEUS - Dividend Comparison

HEDJ's dividend yield for the trailing twelve months is around 1.51%, less than IEUS's 3.26% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
HEDJ WisdomTree Europe Hedged Equity Fund	1.51%	1.63%	3.28%	3.31%	2.83%	2.08%	2.65%	1.82%	2.73%	2.27%	2.74%	9.43%
IEUS iShares MSCI Europe Small-Cap ETF	3.26%	3.19%	3.25%	2.97%	3.00%	2.63%	1.21%	4.03%	3.21%	2.13%	2.48%	2.06%

Frequently Asked Questions

Can I hold both HEDJ and IEUS in my portfolio?

HEDJ and IEUS have a correlation of 0.75, 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 IEUS?

IEUS has higher volatility (4.97%) compared to HEDJ (4.84%). In terms of maximum drawdown, HEDJ dropped -38.18% vs IEUS's -63.09%.

Which ETF is better, HEDJ or IEUS?

On 10-year performance, HEDJ leads with 11.67% vs 8.42% for IEUS. On fees, IEUS is cheaper at 0.40% per year. On volatility, HEDJ has been the lower-risk option at 4.84%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, HEDJ or IEUS?

Over the 10-year period, HEDJ has performed better with a 11.67% return vs 8.42%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, HEDJ or IEUS?

IEUS is cheaper with a 0.40% expense ratio, compared with 0.58% for HEDJ.

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

IEUS has the higher dividend yield at 3.26%, compared with 1.51% for HEDJ.

What is the main difference between HEDJ and IEUS?

HEDJ tracks WisdomTree Europe Hedged Equity Index, while IEUS tracks MSCI Europe Small Cap Index. They also come from different issuers: WisdomTree and iShares. Their fees differ too: 0.58% for HEDJ and 0.40% for IEUS.

Which has better risk-adjusted returns?

HEDJ currently has the higher Sharpe Ratio (1.33 vs 0.65), 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.