HEFA vs. HSCZ

Last updated Jun 3, 2026

HEFA (iShares Currency Hedged MSCI EAFE ETF) and HSCZ (iShares Currency Hedged MSCI EAFE Small Cap ETF) are both exchange-traded funds - HEFA is a Foreign Large Cap Equities fund tracking the MSCI EAFE 100% Hedged to USD Index, while HSCZ is a Foreign Small & Mid Cap Equities fund tracking the MSCI EAFE Small-Cap 100% Hedged to USD Index. Both are passively managed. Over the past 10 years, HEFA returned 12.65%/yr vs 11.64%/yr for HSCZ. Their correlation of 0.83 suggests significant overlap in exposure. HEFA charges 0.35%/yr vs 0.43%/yr for HSCZ.

Performance

HEFA vs. HSCZ - 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 EAFE Small Cap ETF (HSCZ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both investments are quite close, with HEFA having a 10.74% return and HSCZ slightly higher at 10.76%. Over the past 10 years, HEFA has outperformed HSCZ with an annualized return of 12.65%, while HSCZ has yielded a comparatively lower 11.64% annualized return.

HEFA

• 1D: 0.66%
• 1M: 4.11%
• YTD: 10.74%
• 6M: 13.13%
• 1Y: 26.32%
• 3Y*: 18.49%
• 5Y*: 13.71%
• 10Y*: 12.65%

HSCZ

• 1D: 0.35%
• 1M: 3.44%
• YTD: 10.76%
• 6M: 13.60%
• 1Y: 28.62%
• 3Y*: 18.74%
• 5Y*: 11.14%
• 10Y*: 11.64%

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

HEFA vs. HSCZ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
HEFA iShares Currency Hedged MSCI EAFE ETF	10.74%	24.58%	13.71%	20.33%	-4.86%	19.59%	2.09%	27.63%	-9.33%	16.67%
HSCZ iShares Currency Hedged MSCI EAFE Small Cap ETF	10.76%	25.74%	12.89%	17.03%	-11.46%	17.75%	6.40%	27.89%	-13.99%	24.52%

Correlation

The correlation between HEFA and HSCZ is 0.84, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.84
Correlation (3Y) Calculated over the trailing 3-year period	0.89
Correlation (5Y) Calculated over the trailing 5-year period	0.91
Correlation (10Y) Calculated over the trailing 10-year period	0.86
Correlation (All Time) Calculated using the full available price history since Jul 15, 2015	0.83

The correlation between HEFA and HSCZ has been stable across timeframes, ranging from 0.83 to 0.91 - a consistent structural relationship.

HEFA vs. HSCZ - Sectors Allocation Comparison

Sectors	HEFA	HSCZ
Financial Services	24.3%	16.0%
Industrials	19.3%	23.3%
Technology	11.0%	9.8%
Healthcare	10.1%	3.3%
Consumer Cyclical	7.4%	8.1%
Consumer Defensive	6.8%	2.9%
Basic Materials	6.2%	13.7%
Communication Services	4.4%	3.5%
Energy	3.8%	4.1%
Utilities	3.7%	3.5%
Real Estate	1.8%	9.6%

Return for Risk

HEFA vs. HSCZ — Risk / Return Rank

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

HEFA

HEFA Risk / Return Rank: 62
HEFA Sharpe Ratio Rank: 62
HEFA Sortino Ratio Rank: 62
HEFA Omega Ratio Rank: 64
HEFA Calmar Ratio Rank: 56
HEFA Martin Ratio Rank: 64

HSCZ

HSCZ Risk / Return Rank: 73
HSCZ Sharpe Ratio Rank: 78
HSCZ Sortino Ratio Rank: 80
HSCZ Omega Ratio Rank: 79
HSCZ Calmar Ratio Rank: 60
HSCZ Martin Ratio Rank: 70

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. HSCZ - 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 EAFE Small Cap ETF (HSCZ). 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.

	HEFA	HSCZ	Difference
Sharpe ratio Return per unit of total volatility	2.10	2.57	-0.46
Sortino ratio Return per unit of downside risk	2.94	3.63	-0.70
Omega ratio Gain probability vs. loss probability	1.39	1.48	-0.09
Calmar ratio Return relative to maximum drawdown	2.83	3.06	-0.23
Martin ratio Return relative to average drawdown	11.83	13.16	-1.33
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

HEFA vs. HSCZ - Sharpe Ratio Comparison

The current HEFA Sharpe Ratio is 2.10, which is comparable to the HSCZ Sharpe Ratio of 2.57. The chart below compares the historical Sharpe Ratios of HEFA and HSCZ, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	HEFA	HSCZ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.10	2.57	-0.46
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	1.00	0.83	+0.17
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.80	0.75	+0.05
Sharpe Ratio (All Time) Calculated using the full available price history	0.67	0.67	0.00

Drawdowns

HEFA vs. HSCZ - Drawdown Comparison

The maximum HEFA drawdown since its inception was -32.39%, smaller than the maximum HSCZ drawdown of -34.89%. Use the drawdown chart below to compare losses from any high point for HEFA and HSCZ.

Drawdown Indicators

	HEFA	HSCZ	Difference
Max Drawdown Largest peak-to-trough decline	-32.39%	-34.89%	+2.50%
Max Drawdown (1Y) Largest decline over 1 year	-9.52%	-9.61%	+0.09%
Max Drawdown (3Y) Largest decline over 3 years	-14.28%	-12.81%	-1.47%
Max Drawdown (5Y) Largest decline over 5 years	-14.79%	-20.11%	+5.32%
Max Drawdown (10Y) Largest decline over 10 years	-32.39%	-34.89%	+2.50%
Current Drawdown Current decline from peak	0.00%	-0.81%	+0.81%
Average Drawdown Average peak-to-trough decline	-4.17%	-4.66%	+0.49%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.28%	2.23%	+0.05%

Volatility

HEFA vs. HSCZ - Volatility Comparison

iShares Currency Hedged MSCI EAFE ETF (HEFA) has a higher volatility of 4.17% compared to iShares Currency Hedged MSCI EAFE Small Cap ETF (HSCZ) at 3.57%. This indicates that HEFA's price experiences larger fluctuations and is considered to be riskier than HSCZ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	HEFA	HSCZ	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.17%	3.57%	+0.60%
Volatility (6M) Calculated over the trailing 6-month period	10.13%	9.24%	+0.89%
Volatility (1Y) Calculated over the trailing 1-year period	12.59%	11.22%	+1.37%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.76%	13.46%	+0.30%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.86%	15.66%	+0.20%

HEFA vs. HSCZ - Expense Ratio Comparison

HEFA has a 0.35% expense ratio, which is lower than HSCZ's 0.43% expense ratio.

Dividends

HEFA vs. HSCZ - Dividend Comparison

HEFA's dividend yield for the trailing twelve months is around 3.97%, more than HSCZ's 2.94% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
HEFA iShares Currency Hedged MSCI EAFE ETF	3.97%	4.40%	3.09%	3.02%	25.14%	3.06%	2.10%	7.56%	4.58%	2.55%	3.17%	3.54%
HSCZ iShares Currency Hedged MSCI EAFE Small Cap ETF	2.94%	3.25%	3.26%	2.98%	26.91%	2.90%	1.46%	4.66%	6.15%	2.52%	2.57%	1.75%

Frequently Asked Questions

Can I hold both HEFA and HSCZ in my portfolio?

HEFA and HSCZ have a correlation of 0.84, 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 HSCZ?

HEFA has higher volatility (4.17%) compared to HSCZ (3.57%). In terms of maximum drawdown, HEFA dropped -32.39% vs HSCZ's -34.89%.

Which ETF is better, HEFA or HSCZ?

On 10-year performance, HEFA leads with 12.65% vs 11.64% for HSCZ. On fees, HEFA is cheaper at 0.35% per year. On volatility, HSCZ has been the lower-risk option at 3.57%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, HEFA or HSCZ?

Over the 10-year period, HEFA has performed better with a 12.65% return vs 11.64%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, HEFA or HSCZ?

HEFA is cheaper with a 0.35% expense ratio, compared with 0.43% for HSCZ.

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

HEFA has the higher dividend yield at 3.97%, compared with 2.94% for HSCZ.

What is the main difference between HEFA and HSCZ?

HEFA is categorized as Foreign Large Cap Equities, while HSCZ is Foreign Small & Mid Cap Equities. HEFA tracks MSCI EAFE 100% Hedged to USD Index, while HSCZ tracks MSCI EAFE Small-Cap 100% Hedged to USD Index. Their fees differ too: 0.35% for HEFA and 0.43% for HSCZ.

Which has better risk-adjusted returns?

HSCZ currently has the higher Sharpe Ratio (2.57 vs 2.10), 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.