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HEWJ vs. DXJ
Performance
Return for Risk
Drawdowns
Volatility
Dividends

HEWJ vs. DXJ

Last updated Aug 5, 2026
Documentation

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 16.67%/yr vs 18.67%/yr for DXJ. Their 0.96 correlation means they have historically moved very closely together. 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.

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Returns By Period

The year-to-date returns for both investments are quite close, with HEWJ having a 20.71% return and DXJ slightly higher at 21.58%. Over the past 10 years, HEWJ has underperformed DXJ with an annualized return of 16.67%, while DXJ has yielded a comparatively higher 18.67% annualized return.

HEWJ

1D
2.48%
1M
-0.17%
6M
12.75%
YTD
20.71%
1Y
45.11%
3Y*
28.13%
5Y*
21.79%
10Y*
16.67%
ALL TIME*
14.05%

DXJ

1D
2.00%
1M
-0.36%
6M
12.08%
YTD
21.58%
1Y
47.92%
3Y*
31.10%
5Y*
27.15%
10Y*
18.67%
ALL TIME*
9.45%
*Multi-year figures are annualized to reflect compound growth (CAGR)

Liquidity Comparison

PositionAvg. Volume Value (2W)Avg. Volume Value (1M)Avg. Volume Value (3M)

DXJ

WisdomTree Japan Hedged Equity Fund
$74.22M$63.63M$59.62M

HEWJ

iShares Currency Hedged MSCI Japan ETF
$1.73M$2.71M$4.09M

HEWJ vs. DXJ - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
HEWJ
iShares Currency Hedged MSCI Japan ETF		20.71%30.25%24.80%36.21%-4.39%12.79%10.29%20.79%-14.68%21.47%
DXJ
WisdomTree Japan Hedged Equity Fund		21.58%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 0.93, meaning they have usually moved in the same direction, including during past declines.

Correlation
Correlation (1Y)
Focuses on recent behavior, but can change the most.

0.93

Correlation (3Y)
Balances recent behavior with more history.

0.96

Correlation (5Y)
Shows whether the relationship held over a longer period.

0.96

Correlation (10Y)
Provides a long-term view across more market conditions.

0.97

Correlation (All Time)
Calculated using the full available price history since Feb 5, 2014

0.96

The correlation between HEWJ and DXJ has been stable across timeframes, ranging from 0.93 to 0.97 - a consistent structural relationship.

HEWJ vs. DXJ - Sectors Allocation Comparison

Sectors
HEWJ
DXJ

Industrials

24.8%
29.5%

Technology

22.2%
12.9%

Financial Services

19.8%
18.3%

Consumer Cyclical

10.1%
13.3%

Healthcare

5.8%
6.8%

Communication Services

4.9%
2.3%

Basic Materials

3.8%
9.1%

Consumer Defensive

3.4%
4.7%

Real Estate

1.9%

-

Utilities

1.0%
0.1%

Energy

0.9%
1.7%

Industrials

HEWJ
24.8%
DXJ
29.5%

Technology

HEWJ
22.2%
DXJ
12.9%

Financial Services

HEWJ
19.8%
DXJ
18.3%

Consumer Cyclical

HEWJ
10.1%
DXJ
13.3%

Healthcare

HEWJ
5.8%
DXJ
6.8%

Communication Services

HEWJ
4.9%
DXJ
2.3%

Basic Materials

HEWJ
3.8%
DXJ
9.1%

Consumer Defensive

HEWJ
3.4%
DXJ
4.7%

Real Estate

HEWJ
1.9%
DXJ

-

Utilities

HEWJ
1.0%
DXJ
0.1%

Energy

HEWJ
0.9%
DXJ
1.7%

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

iShares Currency Hedged MSCI Japan ETF

WisdomTree Japan Hedged Equity Fund

Often compared with HEWJ:
HEWJ vs. EWJHEWJ vs. EWJVHEWJ vs. DBJPHEWJ vs. FLJHHEWJ vs. HEFAHEWJ vs. VOOHEWJ vs. HEEM
Often compared with DXJ:
DXJ vs. EWJDXJ vs. EWJVDXJ vs. DXJSDXJ vs. FLJPDXJ vs. BBJPDXJ vs. VOODXJ vs. DBJP

Return for Risk

HEWJ vs. DXJ — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.
HEWJ
HEWJ Risk / Return Rank: 8787
Overall Rank
HEWJ Sharpe Ratio Rank: 8686
Sharpe Ratio Rank
HEWJ Sortino Ratio Rank: 8383
Sortino Ratio Rank
HEWJ Omega Ratio Rank: 8484
Omega Ratio Rank
HEWJ Calmar Ratio Rank: 9191
Calmar Ratio Rank
HEWJ Martin Ratio Rank: 8989
Martin Ratio Rank
DXJ
DXJ Risk / Return Rank: 9191
Overall Rank
DXJ Sharpe Ratio Rank: 9393
Sharpe Ratio Rank
DXJ Sortino Ratio Rank: 9090
Sortino Ratio Rank
DXJ Omega Ratio Rank: 9191
Omega Ratio Rank
DXJ Calmar Ratio Rank: 9191
Calmar Ratio Rank
DXJ Martin Ratio Rank: 9191
Martin Ratio Rank
The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

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.

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.

HEWJDXJDifference
Sharpe ratioReturn per unit of total volatility
2.25
2.65

-0.40

Sortino ratioReturn per unit of downside risk
2.99
3.45

-0.46

Omega ratioGain probability vs. loss probability

1.40

1.47

-0.07

Calmar ratioReturn relative to maximum drawdown

4.37

4.39

-0.02

Martin ratioReturn relative to average drawdown

14.87

16.26

-1.40

HEWJ vs. DXJ - Sharpe Ratio Comparison

The current HEWJ Sharpe Ratio is 2.25, which is comparable to the DXJ Sharpe Ratio of 2.65. 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.

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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.

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Drawdown Indicators

HEWJDXJDifference

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

-4.58%

-3.14%

-1.44%

Average Drawdown

Average peak-to-trough decline

-6.57%

-14.24%

+7.67%

Ulcer Index

Depth and duration of drawdowns from previous peaks

3.04%

2.96%

+0.08%

Volatility

HEWJ vs. DXJ - Volatility Comparison

iShares Currency Hedged MSCI Japan ETF (HEWJ) has a higher volatility of 6.48% compared to WisdomTree Japan Hedged Equity Fund (DXJ) at 5.90%. 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.

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Volatility by Period

HEWJDXJDifference

Volatility (1M)

Calculated over the trailing 1-month period

6.48%

5.90%

+0.58%

Volatility (6M)

Calculated over the trailing 6-month period

16.28%

14.56%

+1.72%

Volatility (1Y)

Calculated over the trailing 1-year period

20.19%

18.18%

+2.01%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

19.42%

19.10%

+0.32%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

19.49%

19.92%

-0.43%

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 4.12%, more than DXJ's 0.96% yield.

PositionTTM20252024202320222021202020192018201720162015
DXJ
WisdomTree Japan Hedged Equity Fund		0.96%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		4.12%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

With a correlation of 0.93, 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.

HEWJ has higher volatility (6.48%) compared to DXJ (5.90%). In terms of maximum drawdown, HEWJ dropped -31.53% vs DXJ's -49.63%.

On 10-year performance, DXJ leads with 18.67% vs 16.67% for HEWJ. On fees, DXJ is cheaper at 0.48% per year. On volatility, DXJ has been the lower-risk option at 5.90%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, DXJ has performed better with a 18.67% return vs 16.67%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

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

HEWJ has the higher dividend yield at 4.12%, compared with 0.96% for 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.

DXJ currently has the higher Sharpe Ratio (2.65 vs 2.25), 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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