HEWJ vs. VOO

Last updated Aug 5, 2026

HEWJ (iShares Currency Hedged MSCI Japan ETF) and VOO (Vanguard S&P 500 ETF) are both exchange-traded funds - HEWJ is a Japan Equities fund tracking the MSCI Japan 100% Hedged to USD Index, while VOO is a S&P 500 fund tracking the S&P 500 Index. Both are passively managed. Over the past 10 years, HEWJ returned 16.67%/yr vs 15.37%/yr for VOO. Their 0.67 correlation means they have sometimes moved together and sometimes differently. HEWJ charges 0.49%/yr vs 0.03%/yr for VOO.

Performance

HEWJ vs. VOO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Currency Hedged MSCI Japan ETF (HEWJ) and Vanguard S&P 500 ETF (VOO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, HEWJ achieves a 20.71% return, which is significantly higher than VOO's 13.74% return. Over the past 10 years, HEWJ has outperformed VOO with an annualized return of 16.67%, while VOO has yielded a comparatively lower 15.37% annualized return.

HEWJ

• 1D: 2.48%
• 1M: -0.17%
• 6M: 12.75%
• YTD: 20.71%
• 1Y: 45.11%
• 3Y*: 28.13%
• 5Y*: 21.79%
• 10Y*: 16.67%
• ALL TIME*: 14.05%

VOO

• 1D: 1.81%
• 1M: 3.52%
• 6M: 12.48%
• YTD: 13.74%
• 1Y: 23.65%
• 3Y*: 21.57%
• 5Y*: 13.38%
• 10Y*: 15.37%
• ALL TIME*: 15.00%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
HEWJ iShares Currency Hedged MSCI Japan ETF	$1.73M	$2.71M	$4.09M
VOO Vanguard S&P 500 ETF	$4.15B	$3.84B	$5.49B

HEWJ vs. VOO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
HEWJ iShares Currency Hedged MSCI Japan ETF	20.71%	30.25%	24.80%	36.21%	-4.39%	12.79%	10.29%	20.79%	-14.68%	21.47%
VOO Vanguard S&P 500 ETF	13.74%	17.82%	24.98%	26.32%	-18.17%	28.79%	18.32%	31.37%	-4.50%	21.77%

Correlation

The correlation between HEWJ and VOO is 0.61, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.61
Correlation (3Y) Balances recent behavior with more history.	0.59
Correlation (5Y) Shows whether the relationship held over a longer period.	0.64
Correlation (10Y) Provides a long-term view across more market conditions.	0.67
Correlation (All Time) Calculated using the full available price history since Feb 5, 2014	0.67

The correlation between HEWJ and VOO has been stable across timeframes, ranging from 0.59 to 0.67 - a consistent structural relationship.

HEWJ vs. VOO - Sectors Allocation Comparison

Sectors	HEWJ	VOO
Industrials	24.8%	8.5%
Technology	22.2%	38.6%
Financial Services	19.8%	11.4%
Consumer Cyclical	10.1%	9.5%
Healthcare	5.8%	8.9%
Communication Services	4.9%	9.9%
Basic Materials	3.8%	1.7%
Consumer Defensive	3.4%	4.5%
Real Estate	1.9%	1.8%
Utilities	1.0%	2.2%
Energy	0.9%	3.0%

Return for Risk

HEWJ vs. VOO — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

HEWJ

HEWJ Risk / Return Rank: 87
HEWJ Sharpe Ratio Rank: 86
HEWJ Sortino Ratio Rank: 83
HEWJ Omega Ratio Rank: 84
HEWJ Calmar Ratio Rank: 91
HEWJ Martin Ratio Rank: 89

VOO

VOO Risk / Return Rank: 72
VOO Sharpe Ratio Rank: 72
VOO Sortino Ratio Rank: 71
VOO Omega Ratio Rank: 71
VOO Calmar Ratio Rank: 69
VOO Martin Ratio Rank: 79

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

HEWJ vs. VOO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Currency Hedged MSCI Japan ETF (HEWJ) and Vanguard S&P 500 ETF (VOO). 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	VOO	Difference
Sharpe ratio: Return per unit of total volatility	2.25	1.86	+0.39
Sortino ratio: Return per unit of downside risk	2.99	2.56	+0.43
Omega ratio: Gain probability vs. loss probability	1.40	1.33	+0.07
Calmar ratio: Return relative to maximum drawdown	4.37	2.67	+1.70
Martin ratio: Return relative to average drawdown	14.87	11.40	+3.46

HEWJ vs. VOO - Sharpe Ratio Comparison

The current HEWJ Sharpe Ratio is 2.25, which is comparable to the VOO Sharpe Ratio of 1.86. The chart below compares the historical Sharpe Ratios of HEWJ and VOO, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

HEWJ vs. VOO - Drawdown Comparison

The maximum HEWJ drawdown since its inception was -31.53%, smaller than the maximum VOO drawdown of -33.99%. Use the drawdown chart below to compare losses from any high point for HEWJ and VOO.

Drawdown Indicators

	HEWJ	VOO	Difference
Max Drawdown Largest peak-to-trough decline	-31.53%	-33.99%	+2.46%
Max Drawdown (1Y) Largest decline over 1 year	-10.37%	-8.90%	-1.47%
Max Drawdown (3Y) Largest decline over 3 years	-20.90%	-18.69%	-2.21%
Max Drawdown (5Y) Largest decline over 5 years	-20.90%	-24.52%	+3.62%
Max Drawdown (10Y) Largest decline over 10 years	-31.53%	-33.99%	+2.46%
Current Drawdown Current decline from peak	-4.58%	0.00%	-4.58%
Average Drawdown Average peak-to-trough decline	-6.57%	-3.67%	-2.90%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.04%	2.08%	+0.96%

Volatility

HEWJ vs. VOO - Volatility Comparison

iShares Currency Hedged MSCI Japan ETF (HEWJ) has a higher volatility of 6.48% compared to Vanguard S&P 500 ETF (VOO) at 4.11%. This indicates that HEWJ's price experiences larger fluctuations and is considered to be riskier than VOO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	HEWJ	VOO	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.48%	4.11%	+2.37%
Volatility (6M) Calculated over the trailing 6-month period	16.28%	10.31%	+5.97%
Volatility (1Y) Calculated over the trailing 1-year period	20.19%	12.89%	+7.30%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.42%	16.96%	+2.46%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.49%	18.03%	+1.46%

HEWJ vs. VOO - Expense Ratio Comparison

HEWJ has a 0.49% expense ratio, which is higher than VOO's 0.03% expense ratio.

Dividends

HEWJ vs. VOO - Dividend Comparison

HEWJ's dividend yield for the trailing twelve months is around 4.12%, more than VOO's 1.04% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
HEWJ iShares Currency Hedged MSCI Japan ETF	4.12%	5.10%	2.20%	2.02%	47.68%	2.03%	1.20%	2.78%	1.37%	1.21%	1.88%	3.25%
VOO Vanguard S&P 500 ETF	1.04%	1.13%	1.24%	1.46%	1.69%	1.25%	1.54%	1.88%	2.06%	1.78%	2.02%	2.10%

Frequently Asked Questions

Can I hold both HEWJ and VOO in my portfolio?

HEWJ and VOO have a correlation of 0.61, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, HEWJ or VOO?

HEWJ has higher volatility (6.48%) compared to VOO (4.11%). In terms of maximum drawdown, HEWJ dropped -31.53% vs VOO's -33.99%.

Which ETF is better, HEWJ or VOO?

On 10-year performance, HEWJ leads with 16.67% vs 15.37% for VOO. On fees, VOO is cheaper at 0.03% per year. On volatility, VOO has been the lower-risk option at 4.11%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, HEWJ or VOO?

Over the 10-year period, HEWJ has performed better with a 16.67% return vs 15.37%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, HEWJ or VOO?

VOO is cheaper with a 0.03% expense ratio, compared with 0.49% for HEWJ.

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

HEWJ has the higher dividend yield at 4.12%, compared with 1.04% for VOO.

What is the main difference between HEWJ and VOO?

HEWJ is categorized as Japan Equities, while VOO is S&P 500. HEWJ tracks MSCI Japan 100% Hedged to USD Index, while VOO tracks S&P 500 Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.49% for HEWJ and 0.03% for VOO.

Which has better risk-adjusted returns?

HEWJ currently has the higher Sharpe Ratio (2.25 vs 1.86), 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.