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HEWJ vs. IWM
Performance
Return for Risk
Drawdowns
Volatility
Dividends

HEWJ vs. IWM

Last updated Jun 25, 2026

HEWJ (iShares Currency Hedged MSCI Japan ETF) and IWM (iShares Russell 2000 ETF) are both exchange-traded funds - HEWJ is a Japan Equities fund tracking the MSCI Japan 100% Hedged to USD Index, while IWM is a Small Cap Blend Equities fund tracking the Russell 2000 Index. Both are passively managed. Over the past 10 years, HEWJ returned 17.39%/yr vs 11.63%/yr for IWM. A 0.60 correlation means they provide meaningful diversification when combined. HEWJ charges 0.49%/yr vs 0.19%/yr for IWM.

Performance

HEWJ vs. IWM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Currency Hedged MSCI Japan ETF (HEWJ) and iShares Russell 2000 ETF (IWM). 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 20.99% return and IWM slightly higher at 21.03%. Over the past 10 years, HEWJ has outperformed IWM with an annualized return of 17.39%, while IWM has yielded a comparatively lower 11.63% annualized return.

HEWJ

1D
0.28%
1M
3.59%
YTD
20.99%
6M
21.45%
1Y
53.81%
3Y*
28.51%
5Y*
21.47%
10Y*
17.39%

IWM

1D
0.46%
1M
4.31%
YTD
21.03%
6M
17.89%
1Y
39.77%
3Y*
19.40%
5Y*
6.33%
10Y*
11.63%
*Multi-year figures are annualized to reflect compound growth (CAGR)

HEWJ vs. IWM - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
HEWJ
iShares Currency Hedged MSCI Japan ETF		20.99%30.25%24.80%36.21%-4.39%12.79%10.29%20.79%-14.68%21.47%
IWM
iShares Russell 2000 ETF		21.03%12.66%11.38%16.83%-20.48%14.54%20.03%25.39%-11.12%14.58%

Correlation

The correlation between HEWJ and IWM is 0.57, 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

0.57

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

0.53

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

0.59

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

0.61

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

0.60

The correlation between HEWJ and IWM has been stable across timeframes, ranging from 0.53 to 0.61 - a consistent structural relationship.

HEWJ vs. IWM - Sectors Allocation Comparison

Sectors
HEWJ
IWM

Technology

23.5%
20.1%

Industrials

22.8%
17.3%

Financial Services

17.9%
15.5%

Consumer Cyclical

11.1%
8.0%

Communication Services

6.4%
1.7%

Healthcare

5.7%
15.6%

Basic Materials

3.9%
4.5%

Consumer Defensive

3.3%
2.0%

Real Estate

1.9%
5.5%

Utilities

1.0%
3.1%

Energy

0.9%
6.0%

Technology

HEWJ
23.5%
IWM
20.1%

Industrials

HEWJ
22.8%
IWM
17.3%

Financial Services

HEWJ
17.9%
IWM
15.5%

Consumer Cyclical

HEWJ
11.1%
IWM
8.0%

Communication Services

HEWJ
6.4%
IWM
1.7%

Healthcare

HEWJ
5.7%
IWM
15.6%

Basic Materials

HEWJ
3.9%
IWM
4.5%

Consumer Defensive

HEWJ
3.3%
IWM
2.0%

Real Estate

HEWJ
1.9%
IWM
5.5%

Utilities

HEWJ
1.0%
IWM
3.1%

Energy

HEWJ
0.9%
IWM
6.0%

Compare stocks, funds, or ETFs

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iShares Currency Hedged MSCI Japan ETF

iShares Russell 2000 ETF

Often compared with HEWJ:
HEWJ vs. EWJHEWJ vs. EWJVHEWJ vs. DBJPHEWJ vs. FLJHHEWJ vs. HEFAHEWJ vs. DXJHEWJ vs. HEEM
Often compared with IWM:
IWM vs. SPYIWM vs. VTWOIWM vs. IJRIWM vs. AVUVIWM vs. IWNIWM vs. VOOIWM vs. TNA

Return for Risk

HEWJ vs. IWM — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
HEWJ
HEWJ Risk / Return Rank: 9090
Overall Rank
HEWJ Sharpe Ratio Rank: 9090
Sharpe Ratio Rank
HEWJ Sortino Ratio Rank: 8888
Sortino Ratio Rank
HEWJ Omega Ratio Rank: 8888
Omega Ratio Rank
HEWJ Calmar Ratio Rank: 9191
Calmar Ratio Rank
HEWJ Martin Ratio Rank: 9292
Martin Ratio Rank
IWM
IWM Risk / Return Rank: 7070
Overall Rank
IWM Sharpe Ratio Rank: 7070
Sharpe Ratio Rank
IWM Sortino Ratio Rank: 6969
Sortino Ratio Rank
IWM Omega Ratio Rank: 6161
Omega Ratio Rank
IWM Calmar Ratio Rank: 7777
Calmar Ratio Rank
IWM Martin Ratio Rank: 7575
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. IWM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Currency Hedged MSCI Japan ETF (HEWJ) and iShares Russell 2000 ETF (IWM). 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.

HEWJIWMDifference
Sharpe ratioReturn per unit of total volatility
2.71
2.03

+0.68

Sortino ratioReturn per unit of downside risk
3.55
2.80

+0.75

Omega ratioGain probability vs. loss probability

1.49

1.33

+0.15

Calmar ratioReturn relative to maximum drawdown

5.21

3.62

+1.59

Martin ratioReturn relative to average drawdown

19.96

12.82

+7.14

HEWJ vs. IWM - Sharpe Ratio Comparison

The current HEWJ Sharpe Ratio is 2.71, which is higher than the IWM Sharpe Ratio of 2.03. The chart below compares the historical Sharpe Ratios of HEWJ and IWM, 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. IWM - Drawdown Comparison

The maximum HEWJ drawdown since its inception was -31.53%, smaller than the maximum IWM drawdown of -59.05%. Use the drawdown chart below to compare losses from any high point for HEWJ and IWM.

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Drawdown Indicators

HEWJIWMDifference

Max Drawdown

Largest peak-to-trough decline

-31.53%

-59.05%

+27.52%

Max Drawdown (1Y)

Largest decline over 1 year

-10.37%

-11.03%

+0.66%

Max Drawdown (3Y)

Largest decline over 3 years

-20.90%

-27.50%

+6.60%

Max Drawdown (5Y)

Largest decline over 5 years

-20.90%

-31.91%

+11.01%

Max Drawdown (10Y)

Largest decline over 10 years

-31.53%

-41.13%

+9.60%

Current Drawdown

Current decline from peak

-4.36%

-0.50%

-3.86%

Average Drawdown

Average peak-to-trough decline

-6.59%

-10.74%

+4.15%

Ulcer Index

Depth and duration of drawdowns from previous peaks

2.70%

3.11%

-0.41%

Volatility

HEWJ vs. IWM - Volatility Comparison

iShares Currency Hedged MSCI Japan ETF (HEWJ) has a higher volatility of 8.10% compared to iShares Russell 2000 ETF (IWM) at 6.52%. This indicates that HEWJ's price experiences larger fluctuations and is considered to be riskier than IWM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

HEWJIWMDifference

Volatility (1M)

Calculated over the trailing 1-month period

8.10%

6.52%

+1.58%

Volatility (6M)

Calculated over the trailing 6-month period

15.39%

14.30%

+1.09%

Volatility (1Y)

Calculated over the trailing 1-year period

19.95%

19.71%

+0.24%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

19.30%

22.60%

-3.30%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

19.51%

23.06%

-3.55%

HEWJ vs. IWM - Expense Ratio Comparison

HEWJ has a 0.49% expense ratio, which is higher than IWM's 0.19% expense ratio.

Dividends

HEWJ vs. IWM - Dividend Comparison

HEWJ's dividend yield for the trailing twelve months is around 4.22%, more than IWM's 0.90% yield.

PositionTTM20252024202320222021202020192018201720162015
HEWJ
iShares Currency Hedged MSCI Japan ETF		4.22%5.10%2.20%2.02%47.68%2.03%1.20%2.78%1.37%1.21%1.88%3.25%
IWM
iShares Russell 2000 ETF		0.90%1.04%1.15%1.35%1.48%0.94%1.04%1.26%1.40%1.26%1.38%1.54%

Frequently Asked Questions

HEWJ and IWM have a correlation of 0.57, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

HEWJ has higher volatility (8.10%) compared to IWM (6.52%). In terms of maximum drawdown, HEWJ dropped -31.53% vs IWM's -59.05%.

On 10-year performance, HEWJ leads with 17.39% vs 11.63% for IWM. On fees, IWM is cheaper at 0.19% per year. On volatility, IWM has been the lower-risk option at 6.52%. 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 17.39% return vs 11.63%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

IWM is cheaper with a 0.19% expense ratio, compared with 0.49% for HEWJ.

HEWJ has the higher dividend yield at 4.22%, compared with 0.90% for IWM.

HEWJ is categorized as Japan Equities, while IWM is Small Cap Blend Equities. HEWJ tracks MSCI Japan 100% Hedged to USD Index, while IWM tracks Russell 2000 Index. Their fees differ too: 0.49% for HEWJ and 0.19% for IWM.

HEWJ currently has the higher Sharpe Ratio (2.71 vs 2.03), 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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