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HEWJ vs. IEFA
Performance
Return for Risk
Drawdowns
Volatility
Dividends

HEWJ vs. IEFA

Last updated Jul 21, 2026
Documentation

HEWJ (iShares Currency Hedged MSCI Japan ETF) and IEFA (iShares Core MSCI EAFE ETF) are both exchange-traded funds - HEWJ is a Japan Equities fund tracking the MSCI Japan 100% Hedged to USD Index, while IEFA is a Foreign Large Cap Equities fund tracking the MSCI EAFE IMI Index (Net). Both are passively managed. Over the past 10 years, HEWJ returned 16.22%/yr vs 9.33%/yr for IEFA. A 0.70 correlation means they provide meaningful diversification when combined. HEWJ charges 0.49%/yr vs 0.07%/yr for IEFA.

Performance

HEWJ vs. IEFA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Currency Hedged MSCI Japan ETF (HEWJ) and iShares Core MSCI EAFE ETF (IEFA). 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 18.76% return, which is significantly higher than IEFA's 8.58% return. Over the past 10 years, HEWJ has outperformed IEFA with an annualized return of 16.22%, while IEFA has yielded a comparatively lower 9.33% annualized return.

HEWJ

1D
0.21%
1M
-5.20%
6M
11.01%
YTD
18.76%
1Y
48.18%
3Y*
27.15%
5Y*
21.44%
10Y*
16.22%
ALL TIME*
13.95%

IEFA

1D
-0.71%
1M
-1.77%
6M
4.73%
YTD
8.58%
1Y
19.92%
3Y*
15.19%
5Y*
8.55%
10Y*
9.33%
ALL TIME*
8.32%
*Multi-year figures are annualized to reflect compound growth (CAGR)

HEWJ vs. IEFA - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
HEWJ
iShares Currency Hedged MSCI Japan ETF		18.76%30.25%24.80%36.21%-4.39%12.79%10.29%20.79%-14.68%21.47%
IEFA
iShares Core MSCI EAFE ETF		8.58%32.08%3.26%17.95%-15.24%11.63%8.18%22.64%-14.14%26.57%

Correlation

The correlation between HEWJ and IEFA is 0.70, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.70

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

0.64

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

0.67

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

0.70

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

0.70

The correlation between HEWJ and IEFA has been stable across timeframes, ranging from 0.64 to 0.70 - a consistent structural relationship.

HEWJ vs. IEFA - Sectors Allocation Comparison

Sectors
HEWJ
IEFA

Technology

24.0%
12.1%

Industrials

23.7%
19.4%

Financial Services

19.2%
24.2%

Consumer Cyclical

11.0%
7.8%

Healthcare

5.8%
9.6%

Communication Services

5.3%
3.7%

Basic Materials

3.8%
6.5%

Consumer Defensive

3.4%
6.4%

Real Estate

1.9%
2.7%

Utilities

0.9%
3.5%

Energy

0.9%
3.5%

Technology

HEWJ
24.0%
IEFA
12.1%

Industrials

HEWJ
23.7%
IEFA
19.4%

Financial Services

HEWJ
19.2%
IEFA
24.2%

Consumer Cyclical

HEWJ
11.0%
IEFA
7.8%

Healthcare

HEWJ
5.8%
IEFA
9.6%

Communication Services

HEWJ
5.3%
IEFA
3.7%

Basic Materials

HEWJ
3.8%
IEFA
6.5%

Consumer Defensive

HEWJ
3.4%
IEFA
6.4%

Real Estate

HEWJ
1.9%
IEFA
2.7%

Utilities

HEWJ
0.9%
IEFA
3.5%

Energy

HEWJ
0.9%
IEFA
3.5%

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

iShares Core MSCI EAFE ETF

Often compared with HEWJ:
HEWJ vs. EWJHEWJ vs. EWJVHEWJ vs. DBJPHEWJ vs. FLJHHEWJ vs. HEFAHEWJ vs. DXJHEWJ vs. VOO
Often compared with IEFA:
IEFA vs. VEAIEFA vs. VXUSIEFA vs. EFAIEFA vs. FSPSXIEFA vs. IEMGIEFA vs. XEF.TOIEFA vs. IXUS

Return for Risk

HEWJ vs. IEFA — 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: 9191
Sharpe Ratio Rank
HEWJ Sortino Ratio Rank: 8989
Sortino Ratio Rank
HEWJ Omega Ratio Rank: 8989
Omega Ratio Rank
HEWJ Calmar Ratio Rank: 9393
Calmar Ratio Rank
HEWJ Martin Ratio Rank: 9292
Martin Ratio Rank
IEFA
IEFA Risk / Return Rank: 4848
Overall Rank
IEFA Sharpe Ratio Rank: 4949
Sharpe Ratio Rank
IEFA Sortino Ratio Rank: 4949
Sortino Ratio Rank
IEFA Omega Ratio Rank: 4848
Omega Ratio Rank
IEFA Calmar Ratio Rank: 4545
Calmar Ratio Rank
IEFA Martin Ratio Rank: 5252
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. IEFA - Risk-Adjusted Trends Comparison

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

HEWJIEFADifference
Sharpe ratioReturn per unit of total volatility
2.39
1.28

+1.11

Sortino ratioReturn per unit of downside risk
3.17
1.87

+1.30

Omega ratioGain probability vs. loss probability

1.43

1.23

+0.20

Calmar ratioReturn relative to maximum drawdown

4.67

1.74

+2.93

Martin ratioReturn relative to average drawdown

16.87

6.57

+10.30

HEWJ vs. IEFA - Sharpe Ratio Comparison

The current HEWJ Sharpe Ratio is 2.39, which is higher than the IEFA Sharpe Ratio of 1.28. The chart below compares the historical Sharpe Ratios of HEWJ and IEFA, 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. IEFA - Drawdown Comparison

The maximum HEWJ drawdown since its inception was -31.53%, smaller than the maximum IEFA drawdown of -34.78%. Use the drawdown chart below to compare losses from any high point for HEWJ and IEFA.

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Drawdown Indicators

HEWJIEFADifference

Max Drawdown

Largest peak-to-trough decline

-31.53%

-34.78%

+3.25%

Max Drawdown (1Y)

Largest decline over 1 year

-10.37%

-11.50%

+1.13%

Max Drawdown (3Y)

Largest decline over 3 years

-20.90%

-13.76%

-7.14%

Max Drawdown (5Y)

Largest decline over 5 years

-20.90%

-30.41%

+9.51%

Max Drawdown (10Y)

Largest decline over 10 years

-31.53%

-34.78%

+3.25%

Current Drawdown

Current decline from peak

-6.12%

-2.79%

-3.33%

Average Drawdown

Average peak-to-trough decline

-6.58%

-6.64%

+0.06%

Ulcer Index

Depth and duration of drawdowns from previous peaks

2.86%

3.04%

-0.18%

Volatility

HEWJ vs. IEFA - Volatility Comparison

iShares Currency Hedged MSCI Japan ETF (HEWJ) has a higher volatility of 7.72% compared to iShares Core MSCI EAFE ETF (IEFA) at 3.99%. This indicates that HEWJ's price experiences larger fluctuations and is considered to be riskier than IEFA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

HEWJIEFADifference

Volatility (1M)

Calculated over the trailing 1-month period

7.72%

3.99%

+3.73%

Volatility (6M)

Calculated over the trailing 6-month period

15.93%

13.45%

+2.48%

Volatility (1Y)

Calculated over the trailing 1-year period

20.30%

15.64%

+4.66%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

19.32%

16.59%

+2.73%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

19.46%

17.01%

+2.45%

HEWJ vs. IEFA - Expense Ratio Comparison

HEWJ has a 0.49% expense ratio, which is higher than IEFA's 0.07% expense ratio.

Dividends

HEWJ vs. IEFA - Dividend Comparison

HEWJ's dividend yield for the trailing twelve months is around 4.19%, more than IEFA's 3.44% yield.

PositionTTM20252024202320222021202020192018201720162015
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%
IEFA
iShares Core MSCI EAFE ETF		3.44%3.55%3.47%3.20%2.70%3.32%1.90%3.18%3.46%2.57%2.96%2.63%

Frequently Asked Questions

HEWJ and IEFA have a correlation of 0.70, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

HEWJ has higher volatility (7.72%) compared to IEFA (3.99%). In terms of maximum drawdown, HEWJ dropped -31.53% vs IEFA's -34.78%.

On 10-year performance, HEWJ leads with 16.22% vs 9.33% for IEFA. On fees, IEFA is cheaper at 0.07% per year. On volatility, IEFA has been the lower-risk option at 3.99%. 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 16.22% return vs 9.33%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

IEFA is cheaper with a 0.07% expense ratio, compared with 0.49% for HEWJ.

HEWJ has the higher dividend yield at 4.19%, compared with 3.44% for IEFA.

HEWJ is categorized as Japan Equities, while IEFA is Foreign Large Cap Equities. HEWJ tracks MSCI Japan 100% Hedged to USD Index, while IEFA tracks MSCI EAFE IMI Index (Net). Their fees differ too: 0.49% for HEWJ and 0.07% for IEFA.

HEWJ currently has the higher Sharpe Ratio (2.39 vs 1.28), 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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