HEWJ vs. ^N225
HEWJ (iShares Currency Hedged MSCI Japan ETF) is Japan Equities fund tracking the MSCI Japan 100% Hedged to USD Index, while ^N225 (Nikkei 225) is an index. Over the past 10 years, HEWJ returned 16.27%/yr vs 10.51%/yr for ^N225. At a 0.18 correlation, their price movements are largely independent.
Performance
HEWJ vs. ^N225 - Performance Comparison
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Different Trading Currencies
HEWJ is traded in USD, while ^N225 is traded in JPY. To make them comparable, the ^N225 values have been converted to USD using the latest available exchange rates.
Returns By Period
In the year-to-date period, HEWJ achieves a 20.76% return, which is significantly lower than ^N225's 31.16% return. Over the past 10 years, HEWJ has outperformed ^N225 with an annualized return of 16.27%, while ^N225 has yielded a comparatively lower 10.51% annualized return.
HEWJ
- 1D
- 0.28%
- 1M
- 7.25%
- YTD
- 20.76%
- 6M
- 22.79%
- 1Y
- 54.14%
- 3Y*
- 29.48%
- 5Y*
- 21.44%
- 10Y*
- 16.27%
^N225
- 1D
- 0.00%
- 1M
- 11.42%
- YTD
- 31.16%
- 6M
- 28.29%
- 1Y
- 59.61%
- 3Y*
- 21.94%
- 5Y*
- 9.82%
- 10Y*
- 10.51%
HEWJ vs. ^N225 - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
HEWJ iShares Currency Hedged MSCI Japan ETF | 20.76% | 30.25% | 24.80% | 36.21% | -4.39% | 12.79% | 10.29% | 20.79% | -14.68% | 21.47% |
^N225 Nikkei 225 | 31.16% | 26.56% | 7.17% | 19.21% | -20.48% | -5.90% | 22.42% | 19.73% | -10.20% | 23.76% |
Correlation
The correlation between HEWJ and ^N225 is 0.25, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.25 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.19 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.20 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.18 |
Correlation (All Time) Calculated using the full available price history since Feb 6, 2014 | 0.18 |
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Return for Risk
HEWJ vs. ^N225 — Risk / Return Rank
HEWJ
^N225
HEWJ vs. ^N225 - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Currency Hedged MSCI Japan ETF (HEWJ) and Nikkei 225 (^N225). 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.
| HEWJ | ^N225 | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.39 | ||
| Sortino ratioReturn per unit of downside risk | +0.46 | ||
| Omega ratioGain probability vs. loss probability | 1.53 | 1.42 | +0.11 |
| Calmar ratioReturn relative to maximum drawdown | 5.25 | 4.33 | +0.92 |
| Martin ratioReturn relative to average drawdown | 20.60 | 14.09 | +6.51 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| HEWJ | ^N225 | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.92 | 2.54 | +0.39 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 1.13 | 0.43 | +0.70 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.83 | 0.51 | +0.33 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.69 | 0.25 | +0.45 |
Drawdowns
HEWJ vs. ^N225 - Drawdown Comparison
The maximum HEWJ drawdown since its inception was -31.53%, smaller than the maximum ^N225 drawdown of -52.37%. Use the drawdown chart below to compare losses from any high point for HEWJ and ^N225.
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Drawdown Indicators
| HEWJ | ^N225 | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -31.53% | -52.37% | +20.84% |
Max Drawdown (1Y)Largest decline over 1 year | -10.37% | -14.75% | +4.38% |
Max Drawdown (3Y)Largest decline over 3 years | -20.90% | -24.78% | +3.88% |
Max Drawdown (5Y)Largest decline over 5 years | -20.90% | -36.26% | +15.36% |
Max Drawdown (10Y)Largest decline over 10 years | -31.53% | -37.97% | +6.44% |
Current DrawdownCurrent decline from peak | 0.00% | -1.26% | +1.26% |
Average DrawdownAverage peak-to-trough decline | -6.61% | -13.63% | +7.02% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.64% | 4.47% | -1.83% |
Volatility
HEWJ vs. ^N225 - Volatility Comparison
The current volatility for iShares Currency Hedged MSCI Japan ETF (HEWJ) is 3.70%, while Nikkei 225 (^N225) has a volatility of 7.14%. This indicates that HEWJ experiences smaller price fluctuations and is considered to be less risky than ^N225 based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| HEWJ | ^N225 | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 3.70% | 7.14% | -3.44% |
Volatility (6M)Calculated over the trailing 6-month period | 13.66% | 20.24% | -6.58% |
Volatility (1Y)Calculated over the trailing 1-year period | 18.65% | 25.21% | -6.56% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 19.04% | 23.67% | -4.63% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 19.65% | 21.51% | -1.86% |
Frequently Asked Questions
HEWJ and ^N225 have a correlation of 0.25, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
^N225 has higher volatility (7.14%) compared to HEWJ (3.70%). In terms of maximum drawdown, HEWJ dropped -31.53% vs ^N225's -52.37%.
HEWJ currently has the higher Sharpe Ratio (2.92 vs 2.54), 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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