HEWJ vs. DXJ

Last updated Jun 6, 2026

HEWJ (iShares Currency Hedged MSCI Japan ETF) and DXJ (WisdomTree Japan Hedged Equity Fund) are both Japan Equities funds - HEWJ tracks the MSCI Japan 100% Hedged to USD Index while DXJ tracks the WisdomTree Japan Hedged Equity Index. Both are passively managed. Over the past 10 years, HEWJ returned 15.80%/yr vs 17.86%/yr for DXJ. With a 0.96 correlation, they move nearly in lockstep. HEWJ charges 0.49%/yr vs 0.48%/yr for DXJ.

Performance

HEWJ vs. DXJ - 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 Hedged Equity Fund (DXJ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, HEWJ achieves a 16.53% return, which is significantly lower than DXJ's 17.40% return. Over the past 10 years, HEWJ has underperformed DXJ with an annualized return of 15.80%, while DXJ has yielded a comparatively higher 17.86% annualized return.

HEWJ

• 1D: -3.50%
• 1M: 1.57%
• YTD: 16.53%
• 6M: 18.11%
• 1Y: 49.46%
• 3Y*: 27.05%
• 5Y*: 20.58%
• 10Y*: 15.80%

DXJ

• 1D: -2.44%
• 1M: 2.34%
• YTD: 17.40%
• 6M: 20.55%
• 1Y: 52.96%
• 3Y*: 31.49%
• 5Y*: 25.66%
• 10Y*: 17.86%

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

HEWJ vs. DXJ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
HEWJ iShares Currency Hedged MSCI Japan ETF	16.53%	30.25%	24.80%	36.21%	-4.39%	12.79%	10.29%	20.79%	-14.68%	21.47%
DXJ WisdomTree Japan Hedged Equity Fund	17.40%	32.78%	29.83%	42.04%	5.96%	17.99%	3.94%	18.94%	-19.78%	22.81%

Correlation

The correlation between HEWJ and DXJ is 0.94, 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	0.94
Correlation (3Y) Calculated over the trailing 3-year period	0.96
Correlation (5Y) Calculated over the trailing 5-year period	0.96
Correlation (10Y) Calculated over the trailing 10-year period	0.97
Correlation (All Time) Calculated using the full available price history since Feb 6, 2014	0.96

The correlation between HEWJ and DXJ has been stable across timeframes, ranging from 0.94 to 0.97 - a consistent structural relationship.

HEWJ vs. DXJ - Sectors Allocation Comparison

Sectors	HEWJ	DXJ
Industrials	26.0%	27.4%
Technology	19.1%	12.9%
Financial Services	17.6%	18.3%
Consumer Cyclical	12.2%	15.6%
Communication Services	7.9%	2.7%
Healthcare	6.2%	6.8%
Consumer Defensive	3.6%	4.7%
Basic Materials	3.0%	8.5%
Real Estate	2.3%	-
Utilities	1.1%	0.1%
Energy	1.1%	1.7%

Return for Risk

HEWJ vs. DXJ — Risk / Return Rank

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

HEWJ

HEWJ Risk / Return Rank: 84
HEWJ Sharpe Ratio Rank: 83
HEWJ Sortino Ratio Rank: 82
HEWJ Omega Ratio Rank: 82
HEWJ Calmar Ratio Rank: 87
HEWJ Martin Ratio Rank: 88

DXJ

DXJ Risk / Return Rank: 89
DXJ Sharpe Ratio Rank: 90
DXJ Sortino Ratio Rank: 90
DXJ Omega Ratio Rank: 89
DXJ Calmar Ratio Rank: 87
DXJ Martin Ratio Rank: 88

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. DXJ - 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 Hedged Equity Fund (DXJ). 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	DXJ	Difference
Sharpe ratio: Return per unit of total volatility	2.62	3.02	-0.40
Sortino ratio: Return per unit of downside risk	3.57	4.06	-0.49
Omega ratio: Gain probability vs. loss probability	1.48	1.54	-0.07
Calmar ratio: Return relative to maximum drawdown	4.79	4.85	-0.06
Martin ratio: Return relative to average drawdown	18.75	18.91	-0.16
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. DXJ - Sharpe Ratio Comparison

The current HEWJ Sharpe Ratio is 2.62, which is comparable to the DXJ Sharpe Ratio of 3.02. The chart below compares the historical Sharpe Ratios of HEWJ and DXJ, 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	DXJ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.62	3.02	-0.40
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	1.08	1.36	-0.27
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.81	0.89	-0.08
Sharpe Ratio (All Time) Calculated using the full available price history	0.68	0.42	+0.26

Drawdowns

HEWJ vs. DXJ - Drawdown Comparison

The maximum HEWJ drawdown since its inception was -31.53%, smaller than the maximum DXJ drawdown of -49.63%. Use the drawdown chart below to compare losses from any high point for HEWJ and DXJ.

Drawdown Indicators

	HEWJ	DXJ	Difference
Max Drawdown Largest peak-to-trough decline	-31.53%	-49.63%	+18.10%
Max Drawdown (1Y) Largest decline over 1 year	-10.37%	-10.98%	+0.61%
Max Drawdown (3Y) Largest decline over 3 years	-20.90%	-22.19%	+1.29%
Max Drawdown (5Y) Largest decline over 5 years	-20.90%	-22.19%	+1.29%
Max Drawdown (10Y) Largest decline over 10 years	-31.53%	-39.14%	+7.61%
Current Drawdown Current decline from peak	-3.50%	-2.44%	-1.06%
Average Drawdown Average peak-to-trough decline	-6.61%	-14.33%	+7.72%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.65%	2.81%	-0.16%

Volatility

HEWJ vs. DXJ - Volatility Comparison

iShares Currency Hedged MSCI Japan ETF (HEWJ) has a higher volatility of 5.07% compared to WisdomTree Japan Hedged Equity Fund (DXJ) at 4.18%. This indicates that HEWJ's price experiences larger fluctuations and is considered to be riskier than DXJ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	HEWJ	DXJ	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.07%	4.18%	+0.89%
Volatility (6M) Calculated over the trailing 6-month period	14.16%	13.35%	+0.81%
Volatility (1Y) Calculated over the trailing 1-year period	18.98%	17.60%	+1.38%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.10%	18.99%	+0.11%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.67%	20.19%	-0.52%

HEWJ vs. DXJ - Expense Ratio Comparison

HEWJ has a 0.49% expense ratio, which is higher than DXJ's 0.48% expense ratio.

Dividends

HEWJ vs. DXJ - Dividend Comparison

HEWJ's dividend yield for the trailing twelve months is around 4.38%, more than DXJ's 1.10% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DXJ WisdomTree Japan Hedged Equity Fund	1.10%	1.29%	3.48%	3.44%	3.02%	2.64%	2.53%	2.47%	2.92%	2.30%	1.98%	5.95%
HEWJ iShares Currency Hedged MSCI Japan ETF	4.38%	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 DXJ in my portfolio?

With a correlation of 0.94, HEWJ and DXJ move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, HEWJ or DXJ?

HEWJ has higher volatility (5.07%) compared to DXJ (4.18%). In terms of maximum drawdown, HEWJ dropped -31.53% vs DXJ's -49.63%.

Which ETF is better, HEWJ or DXJ?

On 10-year performance, DXJ leads with 17.86% vs 15.80% for HEWJ. On fees, DXJ is cheaper at 0.48% per year. On volatility, DXJ has been the lower-risk option at 4.18%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, HEWJ or DXJ?

Over the 10-year period, DXJ has performed better with a 17.86% return vs 15.80%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, HEWJ or DXJ?

DXJ is cheaper with a 0.48% expense ratio, compared with 0.49% for HEWJ.

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

HEWJ has the higher dividend yield at 4.38%, compared with 1.10% for DXJ.

What is the main difference between HEWJ and DXJ?

HEWJ tracks MSCI Japan 100% Hedged to USD Index, while DXJ tracks WisdomTree Japan Hedged Equity Index. They also come from different issuers: iShares and WisdomTree. Their fees differ too: 0.49% for HEWJ and 0.48% for DXJ.

Which has better risk-adjusted returns?

DXJ currently has the higher Sharpe Ratio (3.02 vs 2.62), 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.