HEDJ vs. SPY
Compare and contrast key facts about WisdomTree Europe Hedged Equity Fund (HEDJ) and SPDR S&P 500 ETF (SPY).
HEDJ and SPY are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. HEDJ is a passively managed fund by WisdomTree that tracks the performance of the WisdomTree Europe Hedged Equity Index. It was launched on Dec 31, 2009. SPY is a passively managed fund by State Street that tracks the performance of the S&P 500 Index. It was launched on Jan 22, 1993. Both HEDJ and SPY are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: HEDJ or SPY.
Key characteristics
| HEDJ | SPY | |
|---|---|---|
| YTD Return | 5.57% | 16.89% |
| 1Y Return | 12.34% | 24.07% |
| 3Y Return (Ann) | 6.93% | 8.44% |
| 5Y Return (Ann) | 9.00% | 14.99% |
| 10Y Return (Ann) | 7.97% | 12.64% |
| Sharpe Ratio | 0.96 | 1.94 |
| Daily Std Dev | 12.72% | 12.53% |
| Max Drawdown | -38.18% | -55.19% |
| Current Drawdown | -6.71% | -2.26% |
Correlation
The correlation between HEDJ and SPY is 0.75, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
HEDJ vs. SPY - Performance Comparison
In the year-to-date period, HEDJ achieves a 5.57% return, which is significantly lower than SPY's 16.89% return. Over the past 10 years, HEDJ has underperformed SPY with an annualized return of 7.97%, while SPY has yielded a comparatively higher 12.64% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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HEDJ vs. SPY - Expense Ratio Comparison
HEDJ has a 0.58% expense ratio, which is higher than SPY's 0.09% expense ratio.
Risk-Adjusted Performance
HEDJ vs. SPY - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for WisdomTree Europe Hedged Equity Fund (HEDJ) and SPDR S&P 500 ETF (SPY). 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.
Dividends
HEDJ vs. SPY - Dividend Comparison
HEDJ's dividend yield for the trailing twelve months is around 3.05%, more than SPY's 1.24% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
HEDJ WisdomTree Europe Hedged Equity Fund | 3.05% | 3.31% | 2.83% | 2.08% | 2.65% | 1.82% | 2.73% | 2.27% | 2.97% | 9.44% | 5.83% | 1.85% |
SPY SPDR S&P 500 ETF | 1.24% | 1.40% | 1.65% | 1.20% | 1.52% | 1.75% | 2.04% | 1.80% | 2.03% | 2.06% | 1.87% | 1.81% |
Drawdowns
HEDJ vs. SPY - Drawdown Comparison
The maximum HEDJ drawdown since its inception was -38.18%, smaller than the maximum SPY drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for HEDJ and SPY. For additional features, visit the drawdowns tool.
Volatility
HEDJ vs. SPY - Volatility Comparison
The current volatility for WisdomTree Europe Hedged Equity Fund (HEDJ) is 4.47%, while SPDR S&P 500 ETF (SPY) has a volatility of 5.52%. This indicates that HEDJ experiences smaller price fluctuations and is considered to be less risky than SPY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.