HEWJ vs. ^N225

Last updated Apr 2, 2026

Compare and contrast key facts about iShares Currency Hedged MSCI Japan ETF (HEWJ) and Nikkei 225 (^N225).

HEWJ is a passively managed fund by iShares that tracks the performance of the MSCI Japan 100% Hedged to USD Index. It was launched on Jan 31, 2014.

Performance

HEWJ vs. ^N225 - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Currency Hedged MSCI Japan ETF (HEWJ) and Nikkei 225 (^N225). The values are adjusted to include any dividend payments, if applicable.

HEWJ vs. ^N225 - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
HEWJ iShares Currency Hedged MSCI Japan ETF	9.72%	30.25%	24.80%	36.21%	-4.39%	12.79%	10.29%	20.79%	-14.68%	21.47%
^N225 Nikkei 225	-0.20%	26.56%	7.17%	19.21%	-20.48%	-5.90%	22.42%	19.73%	-10.20%	23.76%

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 9.72% return, which is significantly higher than ^N225's -0.06% return. Over the past 10 years, HEWJ has outperformed ^N225 with an annualized return of 15.43%, while ^N225 has yielded a comparatively lower 8.30% annualized return.

HEWJ

• 1D: 2.74%
• 1M: -2.87%
• YTD: 9.72%
• 6M: 23.14%
• 1Y: 46.23%
• 3Y*: 30.07%
• 5Y*: 19.05%
• 10Y*: 15.43%

^N225

• 1D: 0.00%
• 1M: -12.84%
• YTD: -0.06%
• 6M: 6.16%
• 1Y: 35.11%
• 3Y*: 14.74%
• 5Y*: 3.57%
• 10Y*: 8.30%

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

Return for Risk

HEWJ vs. ^N225 — Risk / Return Rank

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

HEWJ

HEWJ Risk / Return Rank: 91
HEWJ Sharpe Ratio Rank: 88
HEWJ Sortino Ratio Rank: 90
HEWJ Omega Ratio Rank: 89
HEWJ Calmar Ratio Rank: 94
HEWJ Martin Ratio Rank: 93

^N225

^N225 Risk / Return Rank: 92
^N225 Sharpe Ratio Rank: 94
^N225 Sortino Ratio Rank: 97
^N225 Omega Ratio Rank: 94
^N225 Calmar Ratio Rank: 87
^N225 Martin Ratio Rank: 87

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.

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 ratio Return per unit of total volatility	1.94	1.25	+0.69
Sortino ratio Return per unit of downside risk	2.63	1.91	+0.71
Omega ratio Gain probability vs. loss probability	1.39	1.25	+0.14
Calmar ratio Return relative to maximum drawdown	3.77	1.74	+2.03
Martin ratio Return relative to average drawdown	14.33	6.12	+8.21
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

HEWJ vs. ^N225 - Sharpe Ratio Comparison

The current HEWJ Sharpe Ratio is 1.94, which is higher than the ^N225 Sharpe Ratio of 1.25. The chart below compares the historical Sharpe Ratios of HEWJ and ^N225, offering insights into how both investments have performed under varying market conditions. These values are calculated using daily returns over the previous 12 months.

Sharpe Ratios by Period

	HEWJ	^N225	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.94	1.25	+0.69
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	1.01	0.16	+0.85
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.77	0.40	+0.37
Sharpe Ratio (All Time) Calculated using the full available price history	0.66	0.19	+0.47

Correlation

The correlation between HEWJ and ^N225 is 0.18, which is considered to be low. This implies their price changes are not closely related. A low correlation is generally favorable for portfolio diversification, as it helps to reduce overall risk by spreading it across multiple assets with different performance patterns.

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.

Drawdown Indicators

	HEWJ	^N225	Difference
Max Drawdown Largest peak-to-trough decline	-31.53%	-81.87%	+50.34%
Max Drawdown (1Y) Largest decline over 1 year	-11.99%	-13.23%	+1.24%
Max Drawdown (5Y) Largest decline over 5 years	-20.90%	-26.26%	+5.36%
Max Drawdown (10Y) Largest decline over 10 years	-31.53%	-31.80%	+0.27%
Current Drawdown Current decline from peak	-4.49%	-7.92%	+3.43%
Average Drawdown Average peak-to-trough decline	-6.68%	-34.31%	+27.63%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.16%	4.61%	-1.45%

Volatility

HEWJ vs. ^N225 - Volatility Comparison

The current volatility for iShares Currency Hedged MSCI Japan ETF (HEWJ) is 7.97%, while Nikkei 225 (^N225) has a volatility of 9.66%. 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.

Volatility by Period

	HEWJ	^N225	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.97%	9.66%	-1.69%
Volatility (6M) Calculated over the trailing 6-month period	14.91%	18.72%	-3.81%
Volatility (1Y) Calculated over the trailing 1-year period	23.99%	28.11%	-4.12%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.02%	23.18%	-4.16%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.00%	21.27%	-1.27%