HEWJ vs. HYG
HEWJ (iShares Currency Hedged MSCI Japan ETF) and HYG (iShares iBoxx $ High Yield Corporate Bond ETF) are both exchange-traded funds - HEWJ is a Japan Equities fund tracking the MSCI Japan 100% Hedged to USD Index, while HYG is a High Yield Bonds fund tracking the Markit iBoxx USD Liquid High Yield Index. Both are passively managed. Over the past 10 years, HEWJ returned 17.18%/yr vs 5.03%/yr for HYG. At a 0.49 correlation, their price movements are largely independent. Both charge a 0.49% expense ratio.
Performance
HEWJ vs. HYG - Performance Comparison
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Returns By Period
In the year-to-date period, HEWJ achieves a 21.75% return, which is significantly higher than HYG's 1.78% return. Over the past 10 years, HEWJ has outperformed HYG with an annualized return of 17.18%, while HYG has yielded a comparatively lower 5.03% annualized return.
HEWJ
- 1D
- 2.12%
- 1M
- 5.32%
- YTD
- 21.75%
- 6M
- 21.73%
- 1Y
- 55.27%
- 3Y*
- 27.88%
- 5Y*
- 21.43%
- 10Y*
- 17.18%
HYG
- 1D
- 0.13%
- 1M
- 1.25%
- YTD
- 1.78%
- 6M
- 2.29%
- 1Y
- 6.95%
- 3Y*
- 8.47%
- 5Y*
- 3.83%
- 10Y*
- 5.03%
HEWJ vs. HYG - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
HEWJ iShares Currency Hedged MSCI Japan ETF | 21.75% | 30.25% | 24.80% | 36.21% | -4.39% | 12.79% | 10.29% | 20.79% | -14.68% | 21.47% |
HYG iShares iBoxx $ High Yield Corporate Bond ETF | 1.78% | 8.59% | 7.97% | 11.54% | -10.98% | 3.76% | 4.47% | 14.09% | -2.02% | 6.07% |
Correlation
The correlation between HEWJ and HYG is 0.47, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.47 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.42 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.46 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.50 |
Correlation (All Time) Calculated using the full available price history since Feb 5, 2014 | 0.49 |
The correlation between HEWJ and HYG has been stable across timeframes, ranging from 0.42 to 0.50 - a consistent structural relationship.
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Return for Risk
HEWJ vs. HYG — Risk / Return Rank
HEWJ
HYG
HEWJ vs. HYG - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Currency Hedged MSCI Japan ETF (HEWJ) and iShares iBoxx $ High Yield Corporate Bond ETF (HYG). 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.
| HEWJ | HYG | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.07 | ||
| Sortino ratioReturn per unit of downside risk | +1.13 | ||
| Omega ratioGain probability vs. loss probability | 1.51 | 1.35 | +0.16 |
| Calmar ratioReturn relative to maximum drawdown | 5.35 | 2.98 | +2.37 |
| Martin ratioReturn relative to average drawdown | 20.71 | 13.11 | +7.60 |
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Drawdowns
HEWJ vs. HYG - Drawdown Comparison
The maximum HEWJ drawdown since its inception was -31.53%, smaller than the maximum HYG drawdown of -34.25%. Use the drawdown chart below to compare losses from any high point for HEWJ and HYG.
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Drawdown Indicators
| HEWJ | HYG | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -31.53% | -34.25% | +2.72% |
Max Drawdown (1Y)Largest decline over 1 year | -10.37% | -2.34% | -8.03% |
Max Drawdown (3Y)Largest decline over 3 years | -20.90% | -4.56% | -16.34% |
Max Drawdown (5Y)Largest decline over 5 years | -20.90% | -15.79% | -5.11% |
Max Drawdown (10Y)Largest decline over 10 years | -31.53% | -22.03% | -9.50% |
Current DrawdownCurrent decline from peak | 0.00% | 0.00% | 0.00% |
Average DrawdownAverage peak-to-trough decline | -6.60% | -3.24% | -3.36% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.68% | 0.53% | +2.15% |
Volatility
HEWJ vs. HYG - Volatility Comparison
iShares Currency Hedged MSCI Japan ETF (HEWJ) has a higher volatility of 6.19% compared to iShares iBoxx $ High Yield Corporate Bond ETF (HYG) at 1.31%. This indicates that HEWJ's price experiences larger fluctuations and is considered to be riskier than HYG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| HEWJ | HYG | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 6.19% | 1.31% | +4.88% |
Volatility (6M)Calculated over the trailing 6-month period | 14.67% | 3.08% | +11.59% |
Volatility (1Y)Calculated over the trailing 1-year period | 19.36% | 3.87% | +15.49% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 19.19% | 7.53% | +11.66% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 19.68% | 8.29% | +11.39% |
HEWJ vs. HYG - Expense Ratio Comparison
Both HEWJ and HYG have an expense ratio of 0.49%.
Dividends
HEWJ vs. HYG - Dividend Comparison
HEWJ's dividend yield for the trailing twelve months is around 4.19%, less than HYG's 5.89% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
HEWJ iShares Currency Hedged MSCI Japan ETF | 4.19% | 5.10% | 2.20% | 2.02% | 47.68% | 2.03% | 1.20% | 2.78% | 1.37% | 1.21% | 1.88% | 3.25% |
HYG iShares iBoxx $ High Yield Corporate Bond ETF | 5.89% | 5.71% | 6.01% | 5.74% | 5.30% | 4.02% | 4.88% | 4.99% | 5.54% | 5.12% | 5.27% | 5.90% |
Frequently Asked Questions
HEWJ and HYG have a correlation of 0.47, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
HEWJ has higher volatility (6.19%) compared to HYG (1.31%). In terms of maximum drawdown, HEWJ dropped -31.53% vs HYG's -34.25%.
On 10-year performance, HEWJ leads with 17.18% vs 5.03% for HYG. Both ETFs have the same 0.49% expense ratio. On volatility, HYG has been the lower-risk option at 1.31%. 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 17.18% return vs 5.03%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
HEWJ and HYG have the same expense ratio: 0.49% per year.
HYG has the higher dividend yield at 5.89%, compared with 4.19% for HEWJ.
HEWJ is categorized as Japan Equities, while HYG is High Yield Bonds. HEWJ tracks MSCI Japan 100% Hedged to USD Index, while HYG tracks Markit iBoxx USD Liquid High Yield Index.
HEWJ currently has the higher Sharpe Ratio (2.87 vs 1.81), 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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