HEWJ vs. AVDV

Last updated Jul 21, 2026

HEWJ (iShares Currency Hedged MSCI Japan ETF) and AVDV (Avantis International Small Cap Value ETF) are both exchange-traded funds - HEWJ is a Japan Equities fund tracking the MSCI Japan 100% Hedged to USD Index, while AVDV is a Foreign Small & Mid Cap Equities fund actively managed by Avantis. HEWJ is passively managed, while AVDV is actively managed. Over the past 5 years, HEWJ returned 21.44%/yr vs 13.62%/yr for AVDV. A 0.67 correlation means they provide meaningful diversification when combined. HEWJ charges 0.49%/yr vs 0.36%/yr for AVDV.

Performance

HEWJ vs. AVDV - Performance Comparison

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

Returns By Period

In the year-to-date period, HEWJ achieves a 18.76% return, which is significantly higher than AVDV's 10.24% return.

HEWJ

• 1D: 0.21%
• 1M: -5.20%
• 6M: 11.01%
• YTD: 18.76%
• 1Y: 48.18%
• 3Y*: 27.15%
• 5Y*: 21.44%
• 10Y*: 16.22%
• ALL TIME*: 13.95%

AVDV

• 1D: -0.43%
• 1M: -4.31%
• 6M: 4.67%
• YTD: 10.24%
• 1Y: 31.22%
• 3Y*: 23.59%
• 5Y*: 13.62%
• 10Y*: —
• ALL TIME*: 14.50%

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

HEWJ vs. AVDV - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
HEWJ iShares Currency Hedged MSCI Japan ETF	18.76%	30.25%	24.80%	36.21%	-4.39%	12.79%	10.29%	6.44%
AVDV Avantis International Small Cap Value ETF	10.24%	49.37%	8.67%	16.85%	-11.47%	15.80%	5.01%	11.78%

Correlation

The correlation between HEWJ and AVDV is 0.67, 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	0.67
Correlation (3Y) Calculated over the trailing 3-year period	0.60
Correlation (5Y) Calculated over the trailing 5-year period	0.63
Correlation (All Time) Calculated using the full available price history since Sep 26, 2019	0.67

The correlation between HEWJ and AVDV has been stable across timeframes, ranging from 0.60 to 0.67 - a consistent structural relationship.

HEWJ vs. AVDV - Sectors Allocation Comparison

Sectors	HEWJ	AVDV
Technology	24.0%	7.6%
Industrials	23.7%	22.7%
Financial Services	19.2%	13.6%
Consumer Cyclical	11.0%	15.9%
Healthcare	5.8%	2.4%
Communication Services	5.3%	2.2%
Basic Materials	3.8%	20.3%
Consumer Defensive	3.4%	3.7%
Real Estate	1.9%	1.2%
Utilities	0.9%	1.5%
Energy	0.9%	9.1%

Return for Risk

HEWJ vs. AVDV — 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: 91
HEWJ Sortino Ratio Rank: 89
HEWJ Omega Ratio Rank: 89
HEWJ Calmar Ratio Rank: 93
HEWJ Martin Ratio Rank: 92

AVDV

AVDV Risk / Return Rank: 73
AVDV Sharpe Ratio Rank: 79
AVDV Sortino Ratio Rank: 76
AVDV Omega Ratio Rank: 76
AVDV Calmar Ratio Rank: 64
AVDV Martin Ratio Rank: 67

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. AVDV - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Currency Hedged MSCI Japan ETF (HEWJ) and Avantis International Small Cap Value ETF (AVDV). 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.

	HEWJ	AVDV	Difference
Sharpe ratio: Return per unit of total volatility	2.39	1.89	+0.50
Sortino ratio: Return per unit of downside risk	3.17	2.57	+0.61
Omega ratio: Gain probability vs. loss probability	1.43	1.34	+0.09
Calmar ratio: Return relative to maximum drawdown	4.67	2.38	+2.29
Martin ratio: Return relative to average drawdown	16.87	8.81	+8.06

HEWJ vs. AVDV - Sharpe Ratio Comparison

The current HEWJ Sharpe Ratio is 2.39, which is comparable to the AVDV Sharpe Ratio of 1.89. The chart below compares the historical Sharpe Ratios of HEWJ and AVDV, 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

HEWJ vs. AVDV - Drawdown Comparison

The maximum HEWJ drawdown since its inception was -31.53%, smaller than the maximum AVDV drawdown of -43.01%. Use the drawdown chart below to compare losses from any high point for HEWJ and AVDV.

Drawdown Indicators

	HEWJ	AVDV	Difference
Max Drawdown Largest peak-to-trough decline	-31.53%	-43.01%	+11.48%
Max Drawdown (1Y) Largest decline over 1 year	-10.37%	-13.19%	+2.82%
Max Drawdown (3Y) Largest decline over 3 years	-20.90%	-14.17%	-6.73%
Max Drawdown (5Y) Largest decline over 5 years	-20.90%	-28.08%	+7.18%
Max Drawdown (10Y) Largest decline over 10 years	-31.53%	—	—
Current Drawdown Current decline from peak	-6.12%	-6.28%	+0.16%
Average Drawdown Average peak-to-trough decline	-6.58%	-6.72%	+0.14%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.86%	3.55%	-0.69%

Volatility

HEWJ vs. AVDV - Volatility Comparison

iShares Currency Hedged MSCI Japan ETF (HEWJ) has a higher volatility of 7.72% compared to Avantis International Small Cap Value ETF (AVDV) at 4.46%. This indicates that HEWJ's price experiences larger fluctuations and is considered to be riskier than AVDV based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	HEWJ	AVDV	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.72%	4.46%	+3.26%
Volatility (6M) Calculated over the trailing 6-month period	15.93%	14.46%	+1.47%
Volatility (1Y) Calculated over the trailing 1-year period	20.30%	16.66%	+3.64%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.32%	17.38%	+1.94%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.46%	19.71%	-0.25%

HEWJ vs. AVDV - Expense Ratio Comparison

HEWJ has a 0.49% expense ratio, which is higher than AVDV's 0.36% expense ratio.

Dividends

HEWJ vs. AVDV - Dividend Comparison

HEWJ's dividend yield for the trailing twelve months is around 4.19%, more than AVDV's 2.87% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AVDV Avantis International Small Cap Value ETF	2.87%	3.05%	4.31%	3.29%	3.17%	2.39%	1.67%	0.36%	0.00%	0.00%	0.00%	0.00%
HEWJ iShares Currency Hedged MSCI Japan ETF	4.19%	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

Can I hold both HEWJ and AVDV in my portfolio?

HEWJ and AVDV have a correlation of 0.67, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, HEWJ or AVDV?

HEWJ has higher volatility (7.72%) compared to AVDV (4.46%). In terms of maximum drawdown, HEWJ dropped -31.53% vs AVDV's -43.01%.

Which ETF is better, HEWJ or AVDV?

On 5-year performance, HEWJ leads with 21.44% vs 13.62% for AVDV. On fees, AVDV is cheaper at 0.36% per year. On volatility, AVDV has been the lower-risk option at 4.46%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, HEWJ or AVDV?

Over the 5-year period, HEWJ has performed better with a 21.44% return vs 13.62%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, HEWJ or AVDV?

AVDV is cheaper with a 0.36% expense ratio, compared with 0.49% for HEWJ.

Which ETF pays a higher dividend yield, HEWJ or AVDV?

HEWJ has the higher dividend yield at 4.19%, compared with 2.87% for AVDV.

What is the main difference between HEWJ and AVDV?

HEWJ is categorized as Japan Equities, while AVDV is Foreign Small & Mid Cap Equities. They also come from different issuers: iShares and Avantis. Their fees differ too: 0.49% for HEWJ and 0.36% for AVDV.

Which has better risk-adjusted returns?

HEWJ currently has the higher Sharpe Ratio (2.39 vs 1.89), 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.