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HEWJ vs. EWJ
Performance
Return for Risk
Drawdowns
Volatility
Dividends

HEWJ vs. EWJ

Last updated Jun 26, 2026

HEWJ (iShares Currency Hedged MSCI Japan ETF) and EWJ (iShares MSCI Japan ETF) are both Japan Equities funds from iShares - HEWJ tracks the MSCI Japan 100% Hedged to USD Index while EWJ tracks the MSCI Japan Index. Both are passively managed. Over the past 10 years, HEWJ returned 17.60%/yr vs 9.71%/yr for EWJ. Their correlation of 0.85 suggests significant overlap in exposure. Both charge a 0.49% expense ratio.

Performance

HEWJ vs. EWJ - Performance Comparison

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

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Returns By Period

In the year-to-date period, HEWJ achieves a 21.98% return, which is significantly higher than EWJ's 16.30% return. Over the past 10 years, HEWJ has outperformed EWJ with an annualized return of 17.60%, while EWJ has yielded a comparatively lower 9.71% annualized return.

HEWJ

1D
0.82%
1M
2.80%
YTD
21.98%
6M
22.44%
1Y
55.15%
3Y*
28.93%
5Y*
21.67%
10Y*
17.60%

EWJ

1D
0.84%
1M
1.07%
YTD
16.30%
6M
15.92%
1Y
34.47%
3Y*
18.70%
5Y*
8.98%
10Y*
9.71%
*Multi-year figures are annualized to reflect compound growth (CAGR)

HEWJ vs. EWJ - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
HEWJ
iShares Currency Hedged MSCI Japan ETF		21.98%30.25%24.80%36.21%-4.39%12.79%10.29%20.79%-14.68%21.47%
EWJ
iShares MSCI Japan ETF		16.30%25.84%7.03%20.29%-17.72%1.16%15.40%19.34%-14.10%24.27%

Correlation

The correlation between HEWJ and EWJ is 0.88, 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

0.88

Correlation (3Y)
Calculated over the trailing 3-year period

0.83

Correlation (5Y)
Calculated over the trailing 5-year period

0.83

Correlation (10Y)
Calculated over the trailing 10-year period

0.84

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

0.85

The correlation between HEWJ and EWJ has been stable across timeframes, ranging from 0.83 to 0.88 - a consistent structural relationship.

HEWJ vs. EWJ - Sectors Allocation Comparison

Sectors
HEWJ
EWJ

Technology

23.5%
21.7%

Industrials

22.8%
24.5%

Financial Services

17.9%
17.0%

Consumer Cyclical

11.1%
11.9%

Communication Services

6.4%
8.9%

Healthcare

5.7%
5.6%

Basic Materials

3.9%
3.4%

Consumer Defensive

3.3%
3.3%

Real Estate

1.9%
1.9%

Utilities

1.0%
1.0%

Energy

0.9%
0.9%

Technology

HEWJ
23.5%
EWJ
21.7%

Industrials

HEWJ
22.8%
EWJ
24.5%

Financial Services

HEWJ
17.9%
EWJ
17.0%

Consumer Cyclical

HEWJ
11.1%
EWJ
11.9%

Communication Services

HEWJ
6.4%
EWJ
8.9%

Healthcare

HEWJ
5.7%
EWJ
5.6%

Basic Materials

HEWJ
3.9%
EWJ
3.4%

Consumer Defensive

HEWJ
3.3%
EWJ
3.3%

Real Estate

HEWJ
1.9%
EWJ
1.9%

Utilities

HEWJ
1.0%
EWJ
1.0%

Energy

HEWJ
0.9%
EWJ
0.9%

Compare stocks, funds, or ETFs

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iShares Currency Hedged MSCI Japan ETF

iShares MSCI Japan ETF

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Often compared with EWJ:
EWJ vs. DXJEWJ vs. ^N225EWJ vs. EWJVEWJ vs. EWYEWJ vs. FLJPEWJ vs. JPXNEWJ vs. BBJP

Return for Risk

HEWJ vs. EWJ — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
HEWJ
HEWJ Risk / Return Rank: 9191
Overall Rank
HEWJ Sharpe Ratio Rank: 9292
Sharpe Ratio Rank
HEWJ Sortino Ratio Rank: 9090
Sortino Ratio Rank
HEWJ Omega Ratio Rank: 9090
Omega Ratio Rank
HEWJ Calmar Ratio Rank: 9292
Calmar Ratio Rank
HEWJ Martin Ratio Rank: 9393
Martin Ratio Rank
EWJ
EWJ Risk / Return Rank: 5858
Overall Rank
EWJ Sharpe Ratio Rank: 5757
Sharpe Ratio Rank
EWJ Sortino Ratio Rank: 5757
Sortino Ratio Rank
EWJ Omega Ratio Rank: 5959
Omega Ratio Rank
EWJ Calmar Ratio Rank: 6060
Calmar Ratio Rank
EWJ Martin Ratio Rank: 5656
Martin Ratio Rank
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. EWJ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Currency Hedged MSCI Japan ETF (HEWJ) and iShares MSCI Japan ETF (EWJ). 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.

HEWJEWJDifference
Sharpe ratioReturn per unit of total volatility
2.78
1.67

+1.10

Sortino ratioReturn per unit of downside risk
3.62
2.35

+1.27

Omega ratioGain probability vs. loss probability

1.50

1.31

+0.19

Calmar ratioReturn relative to maximum drawdown

5.34

2.55

+2.79

Martin ratioReturn relative to average drawdown

20.38

8.53

+11.86

HEWJ vs. EWJ - Sharpe Ratio Comparison

The current HEWJ Sharpe Ratio is 2.78, which is higher than the EWJ Sharpe Ratio of 1.67. The chart below compares the historical Sharpe Ratios of HEWJ and EWJ, 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. EWJ - Drawdown Comparison

The maximum HEWJ drawdown since its inception was -31.53%, smaller than the maximum EWJ drawdown of -60.93%. Use the drawdown chart below to compare losses from any high point for HEWJ and EWJ.

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Drawdown Indicators

HEWJEWJDifference

Max Drawdown

Largest peak-to-trough decline

-31.53%

-60.93%

+29.40%

Max Drawdown (1Y)

Largest decline over 1 year

-10.37%

-13.59%

+3.22%

Max Drawdown (3Y)

Largest decline over 3 years

-20.90%

-14.68%

-6.22%

Max Drawdown (5Y)

Largest decline over 5 years

-20.90%

-33.14%

+12.24%

Max Drawdown (10Y)

Largest decline over 10 years

-31.53%

-33.14%

+1.61%

Current Drawdown

Current decline from peak

-3.58%

-3.69%

+0.11%

Average Drawdown

Average peak-to-trough decline

-6.59%

-21.70%

+15.11%

Ulcer Index

Depth and duration of drawdowns from previous peaks

2.71%

4.05%

-1.34%

Volatility

HEWJ vs. EWJ - Volatility Comparison

iShares Currency Hedged MSCI Japan ETF (HEWJ) and iShares MSCI Japan ETF (EWJ) have volatilities of 8.00% and 7.97%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

HEWJEWJDifference

Volatility (1M)

Calculated over the trailing 1-month period

8.00%

7.97%

+0.03%

Volatility (6M)

Calculated over the trailing 6-month period

15.39%

16.67%

-1.28%

Volatility (1Y)

Calculated over the trailing 1-year period

19.96%

20.70%

-0.74%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

19.30%

18.50%

+0.80%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

19.51%

17.33%

+2.18%

HEWJ vs. EWJ - Expense Ratio Comparison

Both HEWJ and EWJ have an expense ratio of 0.49%.

Dividends

HEWJ vs. EWJ - Dividend Comparison

HEWJ's dividend yield for the trailing twelve months is around 4.18%, more than EWJ's 3.81% yield.

PositionTTM20252024202320222021202020192018201720162015
EWJ
iShares MSCI Japan ETF		3.81%4.52%2.34%2.03%1.23%2.08%1.04%2.03%1.71%1.25%1.95%1.27%
HEWJ
iShares Currency Hedged MSCI Japan ETF		4.18%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

HEWJ and EWJ have a correlation of 0.88, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

HEWJ has higher volatility (8.00%) compared to EWJ (7.97%). In terms of maximum drawdown, HEWJ dropped -31.53% vs EWJ's -60.93%.

On 10-year performance, HEWJ leads with 17.60% vs 9.71% for EWJ. Both ETFs have the same 0.49% expense ratio. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, HEWJ has performed better with a 17.60% return vs 9.71%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

HEWJ and EWJ have the same expense ratio: 0.49% per year.

HEWJ has the higher dividend yield at 4.18%, compared with 3.81% for EWJ.

HEWJ tracks MSCI Japan 100% Hedged to USD Index, while EWJ tracks MSCI Japan Index.

HEWJ currently has the higher Sharpe Ratio (2.78 vs 1.67), 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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