HEZU vs. HEFA

Last updated Jun 24, 2026

HEZU (iShares Currency Hedged MSCI Eurozone ETF) and HEFA (iShares Currency Hedged MSCI EAFE ETF) are both exchange-traded funds - HEZU is a Europe Equities fund tracking the MSCI EMU 100% USD Hedged Index, while HEFA is a Foreign Large Cap Equities fund tracking the MSCI EAFE 100% Hedged to USD Index. Both are passively managed. Over the past 10 years, HEZU returned 13.14%/yr vs 13.44%/yr for HEFA. Their correlation of 0.92 suggests significant overlap in exposure. HEZU charges 0.52%/yr vs 0.35%/yr for HEFA.

Performance

HEZU vs. HEFA - Performance Comparison

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

Returns By Period

The year-to-date returns for both stocks are quite close, with HEZU having a 12.57% return and HEFA slightly lower at 12.09%. Both investments have delivered pretty close results over the past 10 years, with HEZU having a 13.14% annualized return and HEFA not far ahead at 13.44%.

HEZU

• 1D: -1.85%
• 1M: 3.67%
• YTD: 12.57%
• 6M: 12.77%
• 1Y: 25.57%
• 3Y*: 19.18%
• 5Y*: 12.84%
• 10Y*: 13.14%

HEFA

• 1D: -1.61%
• 1M: 2.31%
• YTD: 12.09%
• 6M: 12.33%
• 1Y: 29.40%
• 3Y*: 19.37%
• 5Y*: 13.74%
• 10Y*: 13.44%

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

HEZU vs. HEFA - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
HEZU iShares Currency Hedged MSCI Eurozone ETF	12.57%	25.93%	10.63%	22.98%	-9.54%	23.51%	0.52%	29.48%	-10.23%	14.26%
HEFA iShares Currency Hedged MSCI EAFE ETF	12.09%	24.58%	13.71%	20.33%	-4.86%	19.59%	2.09%	27.63%	-9.33%	16.67%

Correlation

The correlation between HEZU and HEFA is 0.91, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.91
Correlation (3Y) Calculated over the trailing 3-year period	0.89
Correlation (5Y) Calculated over the trailing 5-year period	0.92
Correlation (10Y) Calculated over the trailing 10-year period	0.93
Correlation (All Time) Calculated using the full available price history since Aug 7, 2014	0.92

The correlation between HEZU and HEFA has been stable across timeframes, ranging from 0.89 to 0.93 - a consistent structural relationship.

HEZU vs. HEFA - Sectors Allocation Comparison

Sectors	HEZU	HEFA
Financial Services	23.8%	24.3%
Industrials	21.0%	18.0%
Technology	16.1%	12.5%
Consumer Cyclical	8.4%	7.1%
Utilities	6.4%	3.4%
Healthcare	5.6%	9.5%
Consumer Defensive	5.5%	6.5%
Communication Services	4.3%	4.3%
Basic Materials	4.1%	6.0%
Energy	3.9%	3.3%
Real Estate	0.9%	1.4%

Return for Risk

HEZU vs. HEFA — Risk / Return Rank

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

HEZU

HEZU Risk / Return Rank: 52
HEZU Sharpe Ratio Rank: 51
HEZU Sortino Ratio Rank: 52
HEZU Omega Ratio Rank: 50
HEZU Calmar Ratio Rank: 50
HEZU Martin Ratio Rank: 56

HEFA

HEFA Risk / Return Rank: 72
HEFA Sharpe Ratio Rank: 74
HEFA Sortino Ratio Rank: 74
HEFA Omega Ratio Rank: 75
HEFA Calmar Ratio Rank: 65
HEFA Martin Ratio Rank: 73

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. HEFA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Currency Hedged MSCI Eurozone ETF (HEZU) and iShares Currency Hedged MSCI EAFE ETF (HEFA). 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.

	HEZU	HEFA	Difference
Sharpe ratio: Return per unit of total volatility	1.65	2.25	-0.60
Sortino ratio: Return per unit of downside risk	2.38	3.13	-0.75
Omega ratio: Gain probability vs. loss probability	1.30	1.42	-0.12
Calmar ratio: Return relative to maximum drawdown	2.34	3.10	-0.76
Martin ratio: Return relative to average drawdown	9.21	12.99	-3.78

HEZU vs. HEFA - Sharpe Ratio Comparison

The current HEZU Sharpe Ratio is 1.65, which is comparable to the HEFA Sharpe Ratio of 2.25. The chart below compares the historical Sharpe Ratios of HEZU and HEFA, 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

HEZU vs. HEFA - Drawdown Comparison

The maximum HEZU drawdown since its inception was -38.80%, which is greater than HEFA's maximum drawdown of -32.39%. Use the drawdown chart below to compare losses from any high point for HEZU and HEFA.

Drawdown Indicators

	HEZU	HEFA	Difference
Max Drawdown Largest peak-to-trough decline	-38.80%	-32.39%	-6.41%
Max Drawdown (1Y) Largest decline over 1 year	-10.95%	-9.52%	-1.43%
Max Drawdown (3Y) Largest decline over 3 years	-14.83%	-14.28%	-0.55%
Max Drawdown (5Y) Largest decline over 5 years	-22.79%	-14.79%	-8.00%
Max Drawdown (10Y) Largest decline over 10 years	-38.80%	-32.39%	-6.41%
Current Drawdown Current decline from peak	-1.85%	-1.61%	-0.24%
Average Drawdown Average peak-to-trough decline	-5.81%	-4.15%	-1.66%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.78%	2.27%	+0.51%

Volatility

HEZU vs. HEFA - Volatility Comparison

iShares Currency Hedged MSCI Eurozone ETF (HEZU) has a higher volatility of 5.46% compared to iShares Currency Hedged MSCI EAFE ETF (HEFA) at 4.50%. This indicates that HEZU's price experiences larger fluctuations and is considered to be riskier than HEFA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	HEZU	HEFA	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.46%	4.50%	+0.96%
Volatility (6M) Calculated over the trailing 6-month period	13.22%	10.80%	+2.42%
Volatility (1Y) Calculated over the trailing 1-year period	15.56%	13.11%	+2.45%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.60%	13.86%	+2.74%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.18%	15.71%	+2.47%

HEZU vs. HEFA - Expense Ratio Comparison

HEZU has a 0.52% expense ratio, which is higher than HEFA's 0.35% expense ratio.

Dividends

HEZU vs. HEFA - Dividend Comparison

HEZU's dividend yield for the trailing twelve months is around 2.60%, less than HEFA's 3.92% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
HEFA iShares Currency Hedged MSCI EAFE ETF	3.92%	4.40%	3.09%	3.02%	25.14%	3.06%	2.10%	7.56%	4.58%	2.55%	3.17%	3.54%
HEZU iShares Currency Hedged MSCI Eurozone ETF	2.60%	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 HEFA in my portfolio?

With a correlation of 0.91, HEZU and HEFA move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, HEZU or HEFA?

HEZU has higher volatility (5.46%) compared to HEFA (4.50%). In terms of maximum drawdown, HEZU dropped -38.80% vs HEFA's -32.39%.

Which ETF is better, HEZU or HEFA?

On 10-year performance, HEFA leads with 13.44% vs 13.14% for HEZU. On fees, HEFA is cheaper at 0.35% per year. On volatility, HEFA has been the lower-risk option at 4.50%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, HEZU or HEFA?

Over the 10-year period, HEFA has performed better with a 13.44% return vs 13.14%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, HEZU or HEFA?

HEFA is cheaper with a 0.35% expense ratio, compared with 0.52% for HEZU.

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

HEFA has the higher dividend yield at 3.92%, compared with 2.60% for HEZU.

What is the main difference between HEZU and HEFA?

HEZU is categorized as Europe Equities, while HEFA is Foreign Large Cap Equities. HEZU tracks MSCI EMU 100% USD Hedged Index, while HEFA tracks MSCI EAFE 100% Hedged to USD Index. Their fees differ too: 0.52% for HEZU and 0.35% for HEFA.

Which has better risk-adjusted returns?

HEFA currently has the higher Sharpe Ratio (2.25 vs 1.65), 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.