HEFA vs. DXJ

Last updated Jun 14, 2026

HEFA (iShares Currency Hedged MSCI EAFE ETF) and DXJ (WisdomTree Japan Hedged Equity Fund) are both exchange-traded funds - HEFA is a Foreign Large Cap Equities fund tracking the MSCI EAFE 100% Hedged to USD Index, while DXJ is a Japan Equities fund tracking the WisdomTree Japan Hedged Equity Index. Both are passively managed. Over the past 10 years, HEFA returned 13.27%/yr vs 18.72%/yr for DXJ. Their correlation of 0.80 suggests significant overlap in exposure. HEFA charges 0.35%/yr vs 0.48%/yr for DXJ.

Performance

HEFA vs. DXJ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Currency Hedged MSCI EAFE ETF (HEFA) and WisdomTree Japan Hedged Equity Fund (DXJ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, HEFA achieves a 11.36% return, which is significantly lower than DXJ's 18.74% return. Over the past 10 years, HEFA has underperformed DXJ with an annualized return of 13.27%, while DXJ has yielded a comparatively higher 18.72% annualized return.

HEFA

• 1D: 0.33%
• 1M: 3.88%
• YTD: 11.36%
• 6M: 12.73%
• 1Y: 28.01%
• 3Y*: 18.32%
• 5Y*: 13.57%
• 10Y*: 13.27%

DXJ

• 1D: 0.74%
• 1M: 0.35%
• YTD: 18.74%
• 6M: 19.84%
• 1Y: 54.41%
• 3Y*: 30.91%
• 5Y*: 26.01%
• 10Y*: 18.72%

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

HEFA vs. DXJ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
HEFA iShares Currency Hedged MSCI EAFE ETF	11.36%	24.58%	13.71%	20.33%	-4.86%	19.59%	2.09%	27.63%	-9.33%	16.67%
DXJ WisdomTree Japan Hedged Equity Fund	18.74%	32.78%	29.83%	42.04%	5.96%	17.99%	3.94%	18.94%	-19.78%	22.81%

Correlation

The correlation between HEFA and DXJ is 0.74, 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	0.74
Correlation (3Y) Calculated over the trailing 3-year period	0.75
Correlation (5Y) Calculated over the trailing 5-year period	0.77
Correlation (10Y) Calculated over the trailing 10-year period	0.81
Correlation (All Time) Calculated using the full available price history since Feb 14, 2014	0.80

The correlation between HEFA and DXJ has been stable across timeframes, ranging from 0.74 to 0.81 - a consistent structural relationship.

HEFA vs. DXJ - Sectors Allocation Comparison

Sectors	HEFA	DXJ
Financial Services	24.9%	18.3%
Industrials	18.4%	27.4%
Technology	12.7%	12.9%
Healthcare	10.2%	6.8%
Consumer Cyclical	6.8%	15.6%
Consumer Defensive	6.4%	4.7%
Basic Materials	6.2%	8.5%
Communication Services	4.5%	2.7%
Energy	3.9%	1.7%
Utilities	3.4%	0.1%
Real Estate	1.2%	-

Return for Risk

HEFA vs. DXJ — Risk / Return Rank

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

HEFA

HEFA Risk / Return Rank: 72
HEFA Sharpe Ratio Rank: 74
HEFA Sortino Ratio Rank: 74
HEFA Omega Ratio Rank: 75
HEFA Calmar Ratio Rank: 64
HEFA Martin Ratio Rank: 73

DXJ

DXJ Risk / Return Rank: 92
DXJ Sharpe Ratio Rank: 93
DXJ Sortino Ratio Rank: 93
DXJ Omega Ratio Rank: 92
DXJ Calmar Ratio Rank: 90
DXJ Martin Ratio Rank: 91

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.

HEFA vs. DXJ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Currency Hedged MSCI EAFE ETF (HEFA) and WisdomTree Japan Hedged Equity Fund (DXJ). 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.

	HEFA	DXJ	Difference
Sharpe ratio: Return per unit of total volatility	2.05	3.02	-0.98
Sortino ratio: Return per unit of downside risk	2.87	4.04	-1.16
Omega ratio: Gain probability vs. loss probability	1.38	1.54	-0.16
Calmar ratio: Return relative to maximum drawdown	2.81	4.88	-2.07
Martin ratio: Return relative to average drawdown	11.78	18.93	-7.15

HEFA vs. DXJ - Sharpe Ratio Comparison

The current HEFA Sharpe Ratio is 2.05, which is lower than the DXJ Sharpe Ratio of 3.02. The chart below compares the historical Sharpe Ratios of HEFA and DXJ, 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

HEFA vs. DXJ - Drawdown Comparison

The maximum HEFA drawdown since its inception was -32.39%, smaller than the maximum DXJ drawdown of -49.63%. Use the drawdown chart below to compare losses from any high point for HEFA and DXJ.

Drawdown Indicators

	HEFA	DXJ	Difference
Max Drawdown Largest peak-to-trough decline	-32.39%	-49.63%	+17.24%
Max Drawdown (1Y) Largest decline over 1 year	-9.52%	-10.98%	+1.46%
Max Drawdown (3Y) Largest decline over 3 years	-14.28%	-22.19%	+7.91%
Max Drawdown (5Y) Largest decline over 5 years	-14.79%	-22.19%	+7.40%
Max Drawdown (10Y) Largest decline over 10 years	-32.39%	-39.14%	+6.75%
Current Drawdown Current decline from peak	0.00%	-1.34%	+1.34%
Average Drawdown Average peak-to-trough decline	-4.16%	-14.32%	+10.16%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.28%	2.83%	-0.55%

Volatility

HEFA vs. DXJ - Volatility Comparison

iShares Currency Hedged MSCI EAFE ETF (HEFA) and WisdomTree Japan Hedged Equity Fund (DXJ) have volatilities of 4.55% and 4.64%, 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

	HEFA	DXJ	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.55%	4.64%	-0.09%
Volatility (6M) Calculated over the trailing 6-month period	10.68%	13.56%	-2.88%
Volatility (1Y) Calculated over the trailing 1-year period	13.08%	17.73%	-4.65%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.85%	19.02%	-5.17%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.86%	20.17%	-4.31%

HEFA vs. DXJ - Expense Ratio Comparison

HEFA has a 0.35% expense ratio, which is lower than DXJ's 0.48% expense ratio.

Dividends

HEFA vs. DXJ - Dividend Comparison

HEFA's dividend yield for the trailing twelve months is around 3.95%, more than DXJ's 1.09% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DXJ WisdomTree Japan Hedged Equity Fund	1.09%	1.29%	3.48%	3.44%	3.02%	2.64%	2.53%	2.47%	2.92%	2.30%	1.98%	5.95%
HEFA iShares Currency Hedged MSCI EAFE ETF	3.95%	4.40%	3.09%	3.02%	25.14%	3.06%	2.10%	7.56%	4.58%	2.55%	3.17%	3.54%

Frequently Asked Questions

Can I hold both HEFA and DXJ in my portfolio?

HEFA and DXJ have a correlation of 0.74, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, HEFA or DXJ?

DXJ has higher volatility (4.64%) compared to HEFA (4.55%). In terms of maximum drawdown, HEFA dropped -32.39% vs DXJ's -49.63%.

Which ETF is better, HEFA or DXJ?

On 10-year performance, DXJ leads with 18.72% vs 13.27% for HEFA. On fees, HEFA is cheaper at 0.35% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, HEFA or DXJ?

Over the 10-year period, DXJ has performed better with a 18.72% return vs 13.27%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, HEFA or DXJ?

HEFA is cheaper with a 0.35% expense ratio, compared with 0.48% for DXJ.

Which ETF pays a higher dividend yield, HEFA or DXJ?

HEFA has the higher dividend yield at 3.95%, compared with 1.09% for DXJ.

What is the main difference between HEFA and DXJ?

HEFA is categorized as Foreign Large Cap Equities, while DXJ is Japan Equities. HEFA tracks MSCI EAFE 100% Hedged to USD Index, while DXJ tracks WisdomTree Japan Hedged Equity Index. They also come from different issuers: iShares and WisdomTree. Their fees differ too: 0.35% for HEFA and 0.48% for DXJ.

Which has better risk-adjusted returns?

DXJ currently has the higher Sharpe Ratio (3.02 vs 2.05), 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.