HEWJ vs. DFJ

Last updated Jun 4, 2026

HEWJ (iShares Currency Hedged MSCI Japan ETF) and DFJ (WisdomTree Japan SmallCap Dividend Fund) are both Japan Equities funds - HEWJ tracks the MSCI Japan 100% Hedged to USD Index while DFJ tracks the WisdomTree Japan SmallCap Dividend Index. Both are passively managed. Over the past 10 years, HEWJ returned 16.48%/yr vs 8.70%/yr for DFJ. A 0.71 correlation means they provide meaningful diversification when combined. HEWJ charges 0.49%/yr vs 0.58%/yr for DFJ.

Performance

HEWJ vs. DFJ - Performance Comparison

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

Returns By Period

In the year-to-date period, HEWJ achieves a 20.42% return, which is significantly higher than DFJ's 9.06% return. Over the past 10 years, HEWJ has outperformed DFJ with an annualized return of 16.48%, while DFJ has yielded a comparatively lower 8.70% annualized return.

HEWJ

• 1D: 0.55%
• 1M: 8.68%
• YTD: 20.42%
• 6M: 23.99%
• 1Y: 52.34%
• 3Y*: 29.11%
• 5Y*: 21.38%
• 10Y*: 16.48%

DFJ

• 1D: -0.46%
• 1M: 2.01%
• YTD: 9.06%
• 6M: 12.58%
• 1Y: 26.81%
• 3Y*: 18.99%
• 5Y*: 9.51%
• 10Y*: 8.70%

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

HEWJ vs. DFJ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
HEWJ iShares Currency Hedged MSCI Japan ETF	20.42%	30.25%	24.80%	36.21%	-4.39%	12.79%	10.29%	20.79%	-14.68%	21.47%
DFJ WisdomTree Japan SmallCap Dividend Fund	9.06%	31.90%	2.80%	21.81%	-9.00%	0.38%	1.29%	16.98%	-18.53%	32.14%

Correlation

The correlation between HEWJ and DFJ is 0.60, 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	0.60
Correlation (3Y) Calculated over the trailing 3-year period	0.58
Correlation (5Y) Calculated over the trailing 5-year period	0.61
Correlation (10Y) Calculated over the trailing 10-year period	0.69
Correlation (All Time) Calculated using the full available price history since Feb 6, 2014	0.71

The correlation between HEWJ and DFJ shifts across timeframes, from 0.58 (3 years) to 0.71 (all time), reflecting how their relationship changes across market environments.

HEWJ vs. DFJ - Sectors Allocation Comparison

Sectors	HEWJ	DFJ
Industrials	26.0%	27.0%
Technology	19.1%	12.6%
Financial Services	17.6%	13.3%
Consumer Cyclical	12.2%	16.1%
Communication Services	7.9%	1.5%
Healthcare	6.2%	4.1%
Consumer Defensive	3.6%	7.1%
Basic Materials	3.0%	13.3%
Real Estate	2.3%	2.9%
Utilities	1.1%	1.6%
Energy	1.1%	0.6%

Return for Risk

HEWJ vs. DFJ — Risk / Return Rank

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

HEWJ

HEWJ Risk / Return Rank: 86
HEWJ Sharpe Ratio Rank: 85
HEWJ Sortino Ratio Rank: 85
HEWJ Omega Ratio Rank: 83
HEWJ Calmar Ratio Rank: 87
HEWJ Martin Ratio Rank: 88

DFJ

DFJ Risk / Return Rank: 44
DFJ Sharpe Ratio Rank: 47
DFJ Sortino Ratio Rank: 47
DFJ Omega Ratio Rank: 45
DFJ Calmar Ratio Rank: 42
DFJ Martin Ratio Rank: 38

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. DFJ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Currency Hedged MSCI Japan ETF (HEWJ) and WisdomTree Japan SmallCap Dividend Fund (DFJ). 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	DFJ	Difference
Sharpe ratio: Return per unit of total volatility	2.82	1.65	+1.17
Sortino ratio: Return per unit of downside risk	3.88	2.34	+1.54
Omega ratio: Gain probability vs. loss probability	1.51	1.29	+0.22
Calmar ratio: Return relative to maximum drawdown	5.07	2.07	+3.00
Martin ratio: Return relative to average drawdown	19.91	6.01	+13.90
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. DFJ - Sharpe Ratio Comparison

The current HEWJ Sharpe Ratio is 2.82, which is higher than the DFJ Sharpe Ratio of 1.65. The chart below compares the historical Sharpe Ratios of HEWJ and DFJ, 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

	HEWJ	DFJ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.82	1.65	+1.17
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	1.13	0.60	+0.53
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.84	0.51	+0.33
Sharpe Ratio (All Time) Calculated using the full available price history	0.69	0.31	+0.39

Drawdowns

HEWJ vs. DFJ - Drawdown Comparison

The maximum HEWJ drawdown since its inception was -31.53%, smaller than the maximum DFJ drawdown of -46.00%. Use the drawdown chart below to compare losses from any high point for HEWJ and DFJ.

Drawdown Indicators

	HEWJ	DFJ	Difference
Max Drawdown Largest peak-to-trough decline	-31.53%	-46.00%	+14.47%
Max Drawdown (1Y) Largest decline over 1 year	-10.37%	-13.03%	+2.66%
Max Drawdown (3Y) Largest decline over 3 years	-20.90%	-13.03%	-7.87%
Max Drawdown (5Y) Largest decline over 5 years	-20.90%	-29.71%	+8.81%
Max Drawdown (10Y) Largest decline over 10 years	-31.53%	-40.02%	+8.49%
Current Drawdown Current decline from peak	0.00%	-6.92%	+6.92%
Average Drawdown Average peak-to-trough decline	-6.61%	-11.15%	+4.54%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.64%	4.47%	-1.83%

Volatility

HEWJ vs. DFJ - Volatility Comparison

The current volatility for iShares Currency Hedged MSCI Japan ETF (HEWJ) is 3.91%, while WisdomTree Japan SmallCap Dividend Fund (DFJ) has a volatility of 4.15%. This indicates that HEWJ experiences smaller price fluctuations and is considered to be less risky than DFJ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	HEWJ	DFJ	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.91%	4.15%	-0.24%
Volatility (6M) Calculated over the trailing 6-month period	13.66%	13.48%	+0.18%
Volatility (1Y) Calculated over the trailing 1-year period	18.65%	16.39%	+2.26%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.04%	15.89%	+3.15%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.65%	16.95%	+2.70%

HEWJ vs. DFJ - Expense Ratio Comparison

HEWJ has a 0.49% expense ratio, which is lower than DFJ's 0.58% expense ratio.

Dividends

HEWJ vs. DFJ - Dividend Comparison

HEWJ's dividend yield for the trailing twelve months is around 4.24%, more than DFJ's 2.44% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DFJ WisdomTree Japan SmallCap Dividend Fund	2.44%	2.68%	2.46%	2.43%	2.62%	2.07%	2.59%	2.24%	1.89%	1.60%	1.76%	1.23%
HEWJ iShares Currency Hedged MSCI Japan ETF	4.24%	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 DFJ in my portfolio?

HEWJ and DFJ have a correlation of 0.60, 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 DFJ?

DFJ has higher volatility (4.15%) compared to HEWJ (3.91%). In terms of maximum drawdown, HEWJ dropped -31.53% vs DFJ's -46.00%.

Which ETF is better, HEWJ or DFJ?

On 10-year performance, HEWJ leads with 16.48% vs 8.70% for DFJ. On fees, HEWJ is cheaper at 0.49% per year. On volatility, HEWJ has been the lower-risk option at 3.91%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, HEWJ or DFJ?

Over the 10-year period, HEWJ has performed better with a 16.48% return vs 8.70%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, HEWJ or DFJ?

HEWJ is cheaper with a 0.49% expense ratio, compared with 0.58% for DFJ.

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

HEWJ has the higher dividend yield at 4.24%, compared with 2.44% for DFJ.

What is the main difference between HEWJ and DFJ?

HEWJ tracks MSCI Japan 100% Hedged to USD Index, while DFJ tracks WisdomTree Japan SmallCap Dividend Index. They also come from different issuers: iShares and WisdomTree. Their fees differ too: 0.49% for HEWJ and 0.58% for DFJ.

Which has better risk-adjusted returns?

HEWJ currently has the higher Sharpe Ratio (2.82 vs 1.65), 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.