HEWJ vs. FLJH

Last updated Jun 6, 2026

HEWJ (iShares Currency Hedged MSCI Japan ETF) and FLJH (Franklin FTSE Japan Hedged ETF) are both Japan Equities funds - HEWJ tracks the MSCI Japan 100% Hedged to USD Index while FLJH tracks the FTSE Japan RIC Capped Hedged to USD Net Tax Index. Both are passively managed. Over the past 5 years, HEWJ returned 20.58%/yr vs 20.07%/yr for FLJH. Their correlation of 0.91 suggests significant overlap in exposure. HEWJ charges 0.49%/yr vs 0.09%/yr for FLJH.

Performance

HEWJ vs. FLJH - Performance Comparison

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

Returns By Period

The year-to-date returns for both investments are quite close, with HEWJ having a 16.53% return and FLJH slightly higher at 16.70%.

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%

FLJH

• 1D: -3.09%
• 1M: 1.81%
• YTD: 16.70%
• 6M: 13.91%
• 1Y: 43.98%
• 3Y*: 26.00%
• 5Y*: 20.07%
• 10Y*: —

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

HEWJ vs. FLJH - 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%	1.20%
FLJH Franklin FTSE Japan Hedged ETF	16.70%	25.26%	25.89%	36.02%	-2.75%	12.68%	10.65%	20.34%	-14.66%	1.26%

Correlation

The correlation between HEWJ and FLJH is 0.96 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.96
Correlation (3Y) Calculated over the trailing 3-year period	0.98
Correlation (5Y) Calculated over the trailing 5-year period	0.98
Correlation (All Time) Calculated using the full available price history since Nov 7, 2017	0.91

The correlation between HEWJ and FLJH has been stable across timeframes, ranging from 0.91 to 0.98 - a consistent structural relationship.

HEWJ vs. FLJH - Sectors Allocation Comparison

Sectors	HEWJ	FLJH
Industrials	26.0%	26.6%
Technology	19.1%	17.4%
Financial Services	17.6%	15.9%
Consumer Cyclical	12.2%	12.8%
Communication Services	7.9%	7.1%
Healthcare	6.2%	5.9%
Consumer Defensive	3.6%	4.2%
Basic Materials	3.0%	4.3%
Real Estate	2.3%	3.4%
Utilities	1.1%	1.3%
Energy	1.1%	1.0%

Return for Risk

HEWJ vs. FLJH — 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

FLJH

FLJH Risk / Return Rank: 79
FLJH Sharpe Ratio Rank: 77
FLJH Sortino Ratio Rank: 77
FLJH Omega Ratio Rank: 78
FLJH Calmar Ratio Rank: 81
FLJH Martin Ratio Rank: 82

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. FLJH - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Currency Hedged MSCI Japan ETF (HEWJ) and Franklin FTSE Japan Hedged ETF (FLJH). 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	FLJH	Difference
Sharpe ratio: Return per unit of total volatility	2.62	2.42	+0.20
Sortino ratio: Return per unit of downside risk	3.57	3.32	+0.25
Omega ratio: Gain probability vs. loss probability	1.48	1.45	+0.03
Calmar ratio: Return relative to maximum drawdown	4.79	4.09	+0.70
Martin ratio: Return relative to average drawdown	18.75	16.01	+2.74
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. FLJH - Sharpe Ratio Comparison

The current HEWJ Sharpe Ratio is 2.62, which is comparable to the FLJH Sharpe Ratio of 2.42. The chart below compares the historical Sharpe Ratios of HEWJ and FLJH, 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	FLJH	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.62	2.42	+0.20
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	1.08	1.09	0.00
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.81	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.68	0.73	-0.05

Drawdowns

HEWJ vs. FLJH - Drawdown Comparison

The maximum HEWJ drawdown since its inception was -31.53%, roughly equal to the maximum FLJH drawdown of -31.51%. Use the drawdown chart below to compare losses from any high point for HEWJ and FLJH.

Drawdown Indicators

	HEWJ	FLJH	Difference
Max Drawdown Largest peak-to-trough decline	-31.53%	-31.51%	-0.02%
Max Drawdown (1Y) Largest decline over 1 year	-10.37%	-10.80%	+0.43%
Max Drawdown (3Y) Largest decline over 3 years	-20.90%	-20.39%	-0.51%
Max Drawdown (5Y) Largest decline over 5 years	-20.90%	-20.39%	-0.51%
Max Drawdown (10Y) Largest decline over 10 years	-31.53%	—	—
Current Drawdown Current decline from peak	-3.50%	-3.09%	-0.41%
Average Drawdown Average peak-to-trough decline	-6.61%	-5.31%	-1.30%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.65%	2.76%	-0.11%

Volatility

HEWJ vs. FLJH - Volatility Comparison

iShares Currency Hedged MSCI Japan ETF (HEWJ) has a higher volatility of 5.07% compared to Franklin FTSE Japan Hedged ETF (FLJH) at 4.39%. This indicates that HEWJ's price experiences larger fluctuations and is considered to be riskier than FLJH based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	HEWJ	FLJH	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.07%	4.39%	+0.68%
Volatility (6M) Calculated over the trailing 6-month period	14.16%	13.78%	+0.38%
Volatility (1Y) Calculated over the trailing 1-year period	18.98%	18.24%	+0.74%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.10%	18.56%	+0.54%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.67%	19.84%	-0.17%

HEWJ vs. FLJH - Expense Ratio Comparison

HEWJ has a 0.49% expense ratio, which is higher than FLJH's 0.09% expense ratio.

Dividends

HEWJ vs. FLJH - Dividend Comparison

HEWJ's dividend yield for the trailing twelve months is around 4.38%, more than FLJH's 3.34% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FLJH Franklin FTSE Japan Hedged ETF	3.34%	3.90%	5.06%	25.59%	26.67%	1.29%	0.00%	0.00%	5.92%	0.10%	0.00%	0.00%
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 FLJH in my portfolio?

With a correlation of 0.96, HEWJ and FLJH 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 FLJH?

HEWJ has higher volatility (5.07%) compared to FLJH (4.39%). In terms of maximum drawdown, HEWJ dropped -31.53% vs FLJH's -31.51%.

Which ETF is better, HEWJ or FLJH?

On 5-year performance, HEWJ leads with 20.58% vs 20.07% for FLJH. On fees, FLJH is cheaper at 0.09% per year. On volatility, FLJH has been the lower-risk option at 4.39%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, HEWJ or FLJH?

Over the 5-year period, HEWJ has performed better with a 20.58% return vs 20.07%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, HEWJ or FLJH?

FLJH is cheaper with a 0.09% expense ratio, compared with 0.49% for HEWJ.

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

HEWJ has the higher dividend yield at 4.38%, compared with 3.34% for FLJH.

What is the main difference between HEWJ and FLJH?

HEWJ tracks MSCI Japan 100% Hedged to USD Index, while FLJH tracks FTSE Japan RIC Capped Hedged to USD Net Tax Index. They also come from different issuers: iShares and Franklin Templeton. Their fees differ too: 0.49% for HEWJ and 0.09% for FLJH.

Which has better risk-adjusted returns?

HEWJ currently has the higher Sharpe Ratio (2.62 vs 2.42), 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.