HEZU vs. DFE

Last updated Jun 6, 2026

HEZU (iShares Currency Hedged MSCI Eurozone ETF) and DFE (WisdomTree Europe SmallCap Dividend Fund) are both Europe Equities funds - HEZU tracks the MSCI EMU 100% USD Hedged Index while DFE tracks the WisdomTree Europe SmallCap Dividend Index. Both are passively managed. Over the past 10 years, HEZU returned 11.73%/yr vs 6.62%/yr for DFE. A 0.72 correlation means they provide meaningful diversification when combined. HEZU charges 0.52%/yr vs 0.58%/yr for DFE.

Performance

HEZU vs. DFE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Currency Hedged MSCI Eurozone ETF (HEZU) and WisdomTree Europe SmallCap Dividend Fund (DFE). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, HEZU achieves a 8.75% return, which is significantly higher than DFE's 4.00% return. Over the past 10 years, HEZU has outperformed DFE with an annualized return of 11.73%, while DFE has yielded a comparatively lower 6.62% annualized return.

HEZU

• 1D: -1.81%
• 1M: 0.51%
• YTD: 8.75%
• 6M: 10.10%
• 1Y: 18.64%
• 3Y*: 17.31%
• 5Y*: 12.27%
• 10Y*: 11.73%

DFE

• 1D: -2.05%
• 1M: -3.48%
• YTD: 4.00%
• 6M: 7.13%
• 1Y: 11.86%
• 3Y*: 14.24%
• 5Y*: 3.81%
• 10Y*: 6.62%

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

HEZU vs. DFE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
HEZU iShares Currency Hedged MSCI Eurozone ETF	8.75%	25.93%	10.63%	22.98%	-9.54%	23.51%	0.52%	29.48%	-10.23%	14.26%
DFE WisdomTree Europe SmallCap Dividend Fund	4.00%	32.85%	-0.61%	14.94%	-22.15%	18.44%	2.15%	27.15%	-21.23%	32.71%

Correlation

The correlation between HEZU and DFE is 0.74, 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	0.74
Correlation (3Y) Calculated over the trailing 3-year period	0.73
Correlation (5Y) Calculated over the trailing 5-year period	0.78
Correlation (10Y) Calculated over the trailing 10-year period	0.75
Correlation (All Time) Calculated using the full available price history since Aug 8, 2014	0.72

The correlation between HEZU and DFE has been stable across timeframes, ranging from 0.72 to 0.78 - a consistent structural relationship.

HEZU vs. DFE - Sectors Allocation Comparison

Sectors	HEZU	DFE
Financial Services	24.4%	9.7%
Industrials	21.2%	25.3%
Technology	14.5%	7.1%
Consumer Cyclical	8.4%	9.5%
Utilities	6.8%	3.5%
Healthcare	5.8%	3.5%
Consumer Defensive	5.6%	4.3%
Energy	4.2%	6.9%
Basic Materials	4.1%	7.5%
Communication Services	4.1%	5.5%
Real Estate	1.0%	6.3%

Return for Risk

HEZU vs. DFE — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

HEZU

HEZU Risk / Return Rank: 37
HEZU Sharpe Ratio Rank: 36
HEZU Sortino Ratio Rank: 36
HEZU Omega Ratio Rank: 36
HEZU Calmar Ratio Rank: 36
HEZU Martin Ratio Rank: 43

DFE

DFE Risk / Return Rank: 24
DFE Sharpe Ratio Rank: 24
DFE Sortino Ratio Rank: 24
DFE Omega Ratio Rank: 23
DFE Calmar Ratio Rank: 24
DFE Martin Ratio Rank: 27

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.

HEZU vs. DFE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Currency Hedged MSCI Eurozone ETF (HEZU) and WisdomTree Europe SmallCap Dividend Fund (DFE). 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.

	HEZU	DFE	Difference
Sharpe ratio: Return per unit of total volatility	1.24	0.81	+0.43
Sortino ratio: Return per unit of downside risk	1.82	1.21	+0.61
Omega ratio: Gain probability vs. loss probability	1.23	1.15	+0.08
Calmar ratio: Return relative to maximum drawdown	1.71	1.04	+0.67
Martin ratio: Return relative to average drawdown	6.61	3.58	+3.03
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

HEZU vs. DFE - Sharpe Ratio Comparison

The current HEZU Sharpe Ratio is 1.24, which is higher than the DFE Sharpe Ratio of 0.81. The chart below compares the historical Sharpe Ratios of HEZU and DFE, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	HEZU	DFE	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.24	0.81	+0.43
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.75	0.20	+0.55
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.64	0.34	+0.30
Sharpe Ratio (All Time) Calculated using the full available price history	0.57	0.29	+0.28

Drawdowns

HEZU vs. DFE - Drawdown Comparison

The maximum HEZU drawdown since its inception was -38.80%, smaller than the maximum DFE drawdown of -69.38%. Use the drawdown chart below to compare losses from any high point for HEZU and DFE.

Drawdown Indicators

	HEZU	DFE	Difference
Max Drawdown Largest peak-to-trough decline	-38.80%	-69.38%	+30.58%
Max Drawdown (1Y) Largest decline over 1 year	-10.95%	-11.41%	+0.46%
Max Drawdown (3Y) Largest decline over 3 years	-14.83%	-16.41%	+1.58%
Max Drawdown (5Y) Largest decline over 5 years	-22.79%	-40.34%	+17.55%
Max Drawdown (10Y) Largest decline over 10 years	-38.80%	-49.66%	+10.86%
Current Drawdown Current decline from peak	-1.81%	-4.21%	+2.40%
Average Drawdown Average peak-to-trough decline	-5.83%	-17.73%	+11.90%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.83%	3.32%	-0.49%

Volatility

HEZU vs. DFE - Volatility Comparison

iShares Currency Hedged MSCI Eurozone ETF (HEZU) and WisdomTree Europe SmallCap Dividend Fund (DFE) have volatilities of 4.86% and 4.89%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	HEZU	DFE	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.86%	4.89%	-0.03%
Volatility (6M) Calculated over the trailing 6-month period	12.56%	12.17%	+0.39%
Volatility (1Y) Calculated over the trailing 1-year period	15.10%	14.74%	+0.36%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.49%	19.02%	-2.53%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.43%	19.78%	-1.35%

HEZU vs. DFE - Expense Ratio Comparison

HEZU has a 0.52% expense ratio, which is lower than DFE's 0.58% expense ratio.

Dividends

HEZU vs. DFE - Dividend Comparison

HEZU's dividend yield for the trailing twelve months is around 2.69%, less than DFE's 3.93% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DFE WisdomTree Europe SmallCap Dividend Fund	3.93%	4.38%	4.93%	4.97%	5.84%	2.56%	2.43%	3.39%	4.97%	2.53%	4.05%	2.78%
HEZU iShares Currency Hedged MSCI Eurozone ETF	2.69%	2.92%	2.77%	2.52%	23.26%	2.25%	2.32%	5.40%	3.48%	1.92%	3.11%	2.68%

Frequently Asked Questions

Can I hold both HEZU and DFE in my portfolio?

HEZU and DFE have a correlation of 0.74, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, HEZU or DFE?

DFE has higher volatility (4.89%) compared to HEZU (4.86%). In terms of maximum drawdown, HEZU dropped -38.80% vs DFE's -69.38%.

Which ETF is better, HEZU or DFE?

On 10-year performance, HEZU leads with 11.73% vs 6.62% for DFE. On fees, HEZU is cheaper at 0.52% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, HEZU or DFE?

Over the 10-year period, HEZU has performed better with a 11.73% return vs 6.62%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, HEZU or DFE?

HEZU is cheaper with a 0.52% expense ratio, compared with 0.58% for DFE.

Which ETF pays a higher dividend yield, HEZU or DFE?

DFE has the higher dividend yield at 3.93%, compared with 2.69% for HEZU.

What is the main difference between HEZU and DFE?

HEZU tracks MSCI EMU 100% USD Hedged Index, while DFE tracks WisdomTree Europe SmallCap Dividend Index. They also come from different issuers: iShares and WisdomTree. Their fees differ too: 0.52% for HEZU and 0.58% for DFE.

Which has better risk-adjusted returns?

HEZU currently has the higher Sharpe Ratio (1.24 vs 0.81), 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.