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HEFA vs. HEWJ
Performance
Return for Risk
Drawdowns
Volatility
Dividends

HEFA vs. HEWJ

Last updated Jun 25, 2026

HEFA (iShares Currency Hedged MSCI EAFE ETF) and HEWJ (iShares Currency Hedged MSCI Japan ETF) are both exchange-traded funds - HEFA is a Foreign Large Cap Equities fund tracking the MSCI EAFE 100% Hedged to USD Index, while HEWJ is a Japan Equities fund tracking the MSCI Japan 100% Hedged to USD Index. Both are passively managed. Over the past 10 years, HEFA returned 13.44%/yr vs 17.39%/yr for HEWJ. Their correlation of 0.82 suggests significant overlap in exposure. HEFA charges 0.35%/yr vs 0.49%/yr for HEWJ.

Performance

HEFA vs. HEWJ - Performance Comparison

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

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Returns By Period

In the year-to-date period, HEFA achieves a 12.06% return, which is significantly lower than HEWJ's 20.99% return. Over the past 10 years, HEFA has underperformed HEWJ with an annualized return of 13.44%, while HEWJ has yielded a comparatively higher 17.39% annualized return.

HEFA

1D
-0.02%
1M
2.28%
YTD
12.06%
6M
12.01%
1Y
28.51%
3Y*
19.36%
5Y*
13.67%
10Y*
13.44%

HEWJ

1D
0.28%
1M
3.59%
YTD
20.99%
6M
21.45%
1Y
53.81%
3Y*
28.51%
5Y*
21.47%
10Y*
17.39%
*Multi-year figures are annualized to reflect compound growth (CAGR)

HEFA vs. HEWJ - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
HEFA
iShares Currency Hedged MSCI EAFE ETF		12.06%24.58%13.71%20.33%-4.86%19.59%2.09%27.63%-9.33%16.67%
HEWJ
iShares Currency Hedged MSCI Japan ETF		20.99%30.25%24.80%36.21%-4.39%12.79%10.29%20.79%-14.68%21.47%

Correlation

The correlation between HEFA and HEWJ is 0.79, 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

0.79

Correlation (3Y)
Calculated over the trailing 3-year period

0.77

Correlation (5Y)
Calculated over the trailing 5-year period

0.80

Correlation (10Y)
Calculated over the trailing 10-year period

0.83

Correlation (All Time)
Calculated using the full available price history since Feb 14, 2014

0.82

The correlation between HEFA and HEWJ has been stable across timeframes, ranging from 0.77 to 0.83 - a consistent structural relationship.

HEFA vs. HEWJ - Sectors Allocation Comparison

Sectors
HEFA
HEWJ

Financial Services

24.3%
17.9%

Industrials

18.0%
22.8%

Technology

12.5%
23.5%

Healthcare

9.5%
5.7%

Consumer Cyclical

7.1%
11.1%

Consumer Defensive

6.5%
3.3%

Basic Materials

6.0%
3.9%

Communication Services

4.3%
6.4%

Utilities

3.4%
1.0%

Energy

3.3%
0.9%

Real Estate

1.4%
1.9%

Financial Services

HEFA
24.3%
HEWJ
17.9%

Industrials

HEFA
18.0%
HEWJ
22.8%

Technology

HEFA
12.5%
HEWJ
23.5%

Healthcare

HEFA
9.5%
HEWJ
5.7%

Consumer Cyclical

HEFA
7.1%
HEWJ
11.1%

Consumer Defensive

HEFA
6.5%
HEWJ
3.3%

Basic Materials

HEFA
6.0%
HEWJ
3.9%

Communication Services

HEFA
4.3%
HEWJ
6.4%

Utilities

HEFA
3.4%
HEWJ
1.0%

Energy

HEFA
3.3%
HEWJ
0.9%

Real Estate

HEFA
1.4%
HEWJ
1.9%

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

iShares Currency Hedged MSCI EAFE ETF

iShares Currency Hedged MSCI Japan ETF

Often compared with HEFA:
HEFA vs. DBEFHEFA vs. HAWXHEFA vs. FNDFHEFA vs. IDMOHEFA vs. HSCZHEFA vs. HEZUHEFA vs. VOO
Often compared with HEWJ:
HEWJ vs. EWJHEWJ vs. EWJVHEWJ vs. DBJPHEWJ vs. FLJHHEWJ vs. DXJHEWJ vs. HEEMHEWJ vs. VOO

Return for Risk

HEFA vs. HEWJ — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
HEFA
HEFA Risk / Return Rank: 7474
Overall Rank
HEFA Sharpe Ratio Rank: 7777
Sharpe Ratio Rank
HEFA Sortino Ratio Rank: 7676
Sortino Ratio Rank
HEFA Omega Ratio Rank: 7878
Omega Ratio Rank
HEFA Calmar Ratio Rank: 6767
Calmar Ratio Rank
HEFA Martin Ratio Rank: 7474
Martin Ratio Rank
HEWJ
HEWJ Risk / Return Rank: 9090
Overall Rank
HEWJ Sharpe Ratio Rank: 9090
Sharpe Ratio Rank
HEWJ Sortino Ratio Rank: 8888
Sortino Ratio Rank
HEWJ Omega Ratio Rank: 8888
Omega Ratio Rank
HEWJ Calmar Ratio Rank: 9191
Calmar Ratio Rank
HEWJ Martin Ratio Rank: 9292
Martin Ratio Rank
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. HEWJ - Risk-Adjusted Trends Comparison

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

HEFAHEWJDifference
Sharpe ratioReturn per unit of total volatility
2.19
2.71

-0.52

Sortino ratioReturn per unit of downside risk
3.05
3.55

-0.50

Omega ratioGain probability vs. loss probability

1.41

1.49

-0.08

Calmar ratioReturn relative to maximum drawdown

3.01

5.21

-2.20

Martin ratioReturn relative to average drawdown

12.59

19.96

-7.37

HEFA vs. HEWJ - Sharpe Ratio Comparison

The current HEFA Sharpe Ratio is 2.19, which is comparable to the HEWJ Sharpe Ratio of 2.71. The chart below compares the historical Sharpe Ratios of HEFA and HEWJ, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Drawdowns

HEFA vs. HEWJ - Drawdown Comparison

The maximum HEFA drawdown since its inception was -32.39%, roughly equal to the maximum HEWJ drawdown of -31.53%. Use the drawdown chart below to compare losses from any high point for HEFA and HEWJ.

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Drawdown Indicators

HEFAHEWJDifference

Max Drawdown

Largest peak-to-trough decline

-32.39%

-31.53%

-0.86%

Max Drawdown (1Y)

Largest decline over 1 year

-9.52%

-10.37%

+0.85%

Max Drawdown (3Y)

Largest decline over 3 years

-14.28%

-20.90%

+6.62%

Max Drawdown (5Y)

Largest decline over 5 years

-14.79%

-20.90%

+6.11%

Max Drawdown (10Y)

Largest decline over 10 years

-32.39%

-31.53%

-0.86%

Current Drawdown

Current decline from peak

-1.63%

-4.36%

+2.73%

Average Drawdown

Average peak-to-trough decline

-4.15%

-6.59%

+2.44%

Ulcer Index

Depth and duration of drawdowns from previous peaks

2.27%

2.70%

-0.43%

Volatility

HEFA vs. HEWJ - Volatility Comparison

The current volatility for iShares Currency Hedged MSCI EAFE ETF (HEFA) is 4.49%, while iShares Currency Hedged MSCI Japan ETF (HEWJ) has a volatility of 8.10%. This indicates that HEFA experiences smaller price fluctuations and is considered to be less risky than HEWJ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

HEFAHEWJDifference

Volatility (1M)

Calculated over the trailing 1-month period

4.49%

8.10%

-3.61%

Volatility (6M)

Calculated over the trailing 6-month period

10.74%

15.39%

-4.65%

Volatility (1Y)

Calculated over the trailing 1-year period

13.10%

19.95%

-6.85%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

13.86%

19.30%

-5.44%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

15.71%

19.51%

-3.80%

HEFA vs. HEWJ - Expense Ratio Comparison

HEFA has a 0.35% expense ratio, which is lower than HEWJ's 0.49% expense ratio.

Dividends

HEFA vs. HEWJ - Dividend Comparison

HEFA's dividend yield for the trailing twelve months is around 3.92%, less than HEWJ's 4.22% yield.

PositionTTM20252024202320222021202020192018201720162015
HEFA
iShares Currency Hedged MSCI EAFE ETF		3.92%4.40%3.09%3.02%25.14%3.06%2.10%7.56%4.58%2.55%3.17%3.54%
HEWJ
iShares Currency Hedged MSCI Japan ETF		4.22%5.10%2.20%2.02%47.68%2.03%1.20%2.78%1.37%1.21%1.88%3.25%

Frequently Asked Questions

HEFA and HEWJ have a correlation of 0.79, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

HEWJ has higher volatility (8.10%) compared to HEFA (4.49%). In terms of maximum drawdown, HEFA dropped -32.39% vs HEWJ's -31.53%.

On 10-year performance, HEWJ leads with 17.39% vs 13.44% for HEFA. On fees, HEFA is cheaper at 0.35% per year. On volatility, HEFA has been the lower-risk option at 4.49%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, HEWJ has performed better with a 17.39% return vs 13.44%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

HEFA is cheaper with a 0.35% expense ratio, compared with 0.49% for HEWJ.

HEWJ has the higher dividend yield at 4.22%, compared with 3.92% for HEFA.

HEFA is categorized as Foreign Large Cap Equities, while HEWJ is Japan Equities. HEFA tracks MSCI EAFE 100% Hedged to USD Index, while HEWJ tracks MSCI Japan 100% Hedged to USD Index. Their fees differ too: 0.35% for HEFA and 0.49% for HEWJ.

HEWJ currently has the higher Sharpe Ratio (2.71 vs 2.19), 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.

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