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HEWJ vs. VTI
Performance
Return for Risk
Drawdowns
Volatility
Dividends

HEWJ vs. VTI

Last updated Jun 16, 2026

HEWJ (iShares Currency Hedged MSCI Japan ETF) and VTI (Vanguard Total Stock Market ETF) are both exchange-traded funds - HEWJ is a Japan Equities fund tracking the MSCI Japan 100% Hedged to USD Index, while VTI is a Large Cap Blend Equities fund tracking the CRSP US Total Market Index. Both are passively managed. Over the past 10 years, HEWJ returned 17.18%/yr vs 15.23%/yr for VTI. A 0.67 correlation means they provide meaningful diversification when combined. HEWJ charges 0.49%/yr vs 0.03%/yr for VTI.

Performance

HEWJ vs. VTI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Currency Hedged MSCI Japan ETF (HEWJ) and Vanguard Total Stock Market ETF (VTI). 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 21.75% return, which is significantly higher than VTI's 11.46% return. Over the past 10 years, HEWJ has outperformed VTI with an annualized return of 17.18%, while VTI has yielded a comparatively lower 15.23% 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%

VTI

1D
1.68%
1M
2.70%
YTD
11.46%
6M
11.76%
1Y
28.40%
3Y*
20.94%
5Y*
12.71%
10Y*
15.23%
*Multi-year figures are annualized to reflect compound growth (CAGR)

HEWJ vs. VTI - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
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%
VTI
Vanguard Total Stock Market ETF		11.46%17.10%23.81%26.05%-19.52%25.68%21.08%30.67%-5.23%21.21%

Correlation

The correlation between HEWJ and VTI is 0.61, 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

0.61

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

0.59

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

0.65

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

0.67

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

0.67

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

HEWJ vs. VTI - Sectors Allocation Comparison

Sectors
HEWJ
VTI

Industrials

23.5%
9.5%

Technology

23.3%
33.3%

Financial Services

17.4%
11.9%

Consumer Cyclical

11.1%
9.8%

Communication Services

6.7%
10.1%

Healthcare

5.7%
9.1%

Basic Materials

3.9%
2.0%

Consumer Defensive

3.2%
4.7%

Real Estate

1.8%
2.4%

Utilities

0.9%
2.7%

Energy

0.9%
3.8%

Industrials

HEWJ
23.5%
VTI
9.5%

Technology

HEWJ
23.3%
VTI
33.3%

Financial Services

HEWJ
17.4%
VTI
11.9%

Consumer Cyclical

HEWJ
11.1%
VTI
9.8%

Communication Services

HEWJ
6.7%
VTI
10.1%

Healthcare

HEWJ
5.7%
VTI
9.1%

Basic Materials

HEWJ
3.9%
VTI
2.0%

Consumer Defensive

HEWJ
3.2%
VTI
4.7%

Real Estate

HEWJ
1.8%
VTI
2.4%

Utilities

HEWJ
0.9%
VTI
2.7%

Energy

HEWJ
0.9%
VTI
3.8%

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

Vanguard Total Stock Market ETF

Often compared with HEWJ:
HEWJ vs. EWJHEWJ vs. EWJVHEWJ vs. DBJPHEWJ vs. FLJHHEWJ vs. HEFAHEWJ vs. DXJHEWJ vs. HEEM
Often compared with VTI:
VTI vs. VOOVTI vs. VXUSVTI vs. SPYVTI vs. VTVTI vs. SCHDVTI vs. FZROXVTI vs. QQQ

Return for Risk

HEWJ vs. VTI — 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: 9292
Sharpe Ratio Rank
HEWJ Sortino Ratio Rank: 9191
Sortino Ratio Rank
HEWJ Omega Ratio Rank: 8989
Omega Ratio Rank
HEWJ Calmar Ratio Rank: 9191
Calmar Ratio Rank
HEWJ Martin Ratio Rank: 9292
Martin Ratio Rank
VTI
VTI Risk / Return Rank: 7777
Overall Rank
VTI Sharpe Ratio Rank: 7979
Sharpe Ratio Rank
VTI Sortino Ratio Rank: 7777
Sortino Ratio Rank
VTI Omega Ratio Rank: 7878
Omega Ratio Rank
VTI Calmar Ratio Rank: 7070
Calmar Ratio Rank
VTI Martin Ratio Rank: 8181
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. VTI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Currency Hedged MSCI Japan ETF (HEWJ) and Vanguard Total Stock Market ETF (VTI). 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.

HEWJVTIDifference
Sharpe ratioReturn per unit of total volatility
2.87
2.25

+0.62

Sortino ratioReturn per unit of downside risk
3.85
3.04

+0.82

Omega ratioGain probability vs. loss probability

1.51

1.41

+0.11

Calmar ratioReturn relative to maximum drawdown

5.35

3.20

+2.16

Martin ratioReturn relative to average drawdown

20.71

14.35

+6.36

HEWJ vs. VTI - Sharpe Ratio Comparison

The current HEWJ Sharpe Ratio is 2.87, which is comparable to the VTI Sharpe Ratio of 2.25. The chart below compares the historical Sharpe Ratios of HEWJ and VTI, 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. VTI - Drawdown Comparison

The maximum HEWJ drawdown since its inception was -31.53%, smaller than the maximum VTI drawdown of -55.45%. Use the drawdown chart below to compare losses from any high point for HEWJ and VTI.

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Drawdown Indicators

HEWJVTIDifference

Max Drawdown

Largest peak-to-trough decline

-31.53%

-55.45%

+23.92%

Max Drawdown (1Y)

Largest decline over 1 year

-10.37%

-8.92%

-1.45%

Max Drawdown (3Y)

Largest decline over 3 years

-20.90%

-19.30%

-1.60%

Max Drawdown (5Y)

Largest decline over 5 years

-20.90%

-25.36%

+4.46%

Max Drawdown (10Y)

Largest decline over 10 years

-31.53%

-35.00%

+3.47%

Current Drawdown

Current decline from peak

0.00%

-0.49%

+0.49%

Average Drawdown

Average peak-to-trough decline

-6.60%

-8.02%

+1.42%

Ulcer Index

Depth and duration of drawdowns from previous peaks

2.68%

1.98%

+0.70%

Volatility

HEWJ vs. VTI - Volatility Comparison

iShares Currency Hedged MSCI Japan ETF (HEWJ) has a higher volatility of 6.19% compared to Vanguard Total Stock Market ETF (VTI) at 4.74%. This indicates that HEWJ's price experiences larger fluctuations and is considered to be riskier than VTI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

HEWJVTIDifference

Volatility (1M)

Calculated over the trailing 1-month period

6.19%

4.74%

+1.45%

Volatility (6M)

Calculated over the trailing 6-month period

14.67%

9.94%

+4.73%

Volatility (1Y)

Calculated over the trailing 1-year period

19.36%

12.69%

+6.67%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

19.19%

17.49%

+1.70%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

19.68%

18.34%

+1.34%

HEWJ vs. VTI - Expense Ratio Comparison

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

Dividends

HEWJ vs. VTI - Dividend Comparison

HEWJ's dividend yield for the trailing twelve months is around 4.19%, more than VTI's 1.01% 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%
VTI
Vanguard Total Stock Market ETF		1.01%1.12%1.27%1.44%1.66%1.21%1.42%1.78%2.04%1.71%1.92%1.98%

Frequently Asked Questions

HEWJ and VTI 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.

HEWJ has higher volatility (6.19%) compared to VTI (4.74%). In terms of maximum drawdown, HEWJ dropped -31.53% vs VTI's -55.45%.

On 10-year performance, HEWJ leads with 17.18% vs 15.23% for VTI. On fees, VTI is cheaper at 0.03% per year. On volatility, VTI has been the lower-risk option at 4.74%. 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 15.23%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

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

HEWJ has the higher dividend yield at 4.19%, compared with 1.01% for VTI.

HEWJ is categorized as Japan Equities, while VTI is Large Cap Blend Equities. HEWJ tracks MSCI Japan 100% Hedged to USD Index, while VTI tracks CRSP US Total Market Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.49% for HEWJ and 0.03% for VTI.

HEWJ currently has the higher Sharpe Ratio (2.87 vs 2.25), 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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