HEZU vs. HSCZ

Last updated Aug 2, 2026

HEZU (iShares Currency Hedged MSCI Eurozone ETF) and HSCZ (iShares Currency Hedged MSCI EAFE Small Cap ETF) are both exchange-traded funds - HEZU is a Europe Equities fund tracking the MSCI EMU 100% USD Hedged Index, while HSCZ is a Foreign Small & Mid Cap Equities fund tracking the MSCI EAFE Small-Cap 100% Hedged to USD Index. Both are passively managed. Over the past 10 years, HEZU returned 12.59%/yr vs 11.86%/yr for HSCZ. Their 0.78 correlation means they have sometimes moved together and sometimes differently. HEZU charges 0.52%/yr vs 0.43%/yr for HSCZ.

Performance

HEZU vs. HSCZ - 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 Small Cap ETF (HSCZ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, HEZU achieves a 13.74% return, which is significantly higher than HSCZ's 11.33% return. Over the past 10 years, HEZU has outperformed HSCZ with an annualized return of 12.59%, while HSCZ has yielded a comparatively lower 11.86% annualized return.

HEZU

• 1D: -0.23%
• 1M: -0.42%
• 6M: 9.99%
• YTD: 13.74%
• 1Y: 27.06%
• 3Y*: 18.00%
• 5Y*: 13.04%
• 10Y*: 12.59%
• ALL TIME*: 10.94%

HSCZ

• 1D: -0.63%
• 1M: -0.23%
• 6M: 7.23%
• YTD: 11.33%
• 1Y: 23.45%
• 3Y*: 17.89%
• 5Y*: 10.91%
• 10Y*: 11.86%
• ALL TIME*: 10.50%

*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)
HEZU iShares Currency Hedged MSCI Eurozone ETF	$555.49K	$1.29M	$2.41M
HSCZ iShares Currency Hedged MSCI EAFE Small Cap ETF	$2.56M	$1.76M	$1.27M

HEZU vs. HSCZ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
HEZU iShares Currency Hedged MSCI Eurozone ETF	13.74%	25.93%	10.63%	22.98%	-9.54%	23.51%	0.52%	29.48%	-10.23%	14.26%
HSCZ iShares Currency Hedged MSCI EAFE Small Cap ETF	11.33%	25.74%	12.89%	17.03%	-11.46%	17.75%	6.40%	27.89%	-13.99%	24.52%

Correlation

The correlation between HEZU and HSCZ is 0.74, 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.	0.74
Correlation (3Y) Balances recent behavior with more history.	0.78
Correlation (5Y) Shows whether the relationship held over a longer period.	0.83
Correlation (10Y) Provides a long-term view across more market conditions.	0.81
Correlation (All Time) Calculated using the full available price history since Jul 14, 2015	0.78

The correlation between HEZU and HSCZ has been stable across timeframes, ranging from 0.74 to 0.83 - a consistent structural relationship.

HEZU vs. HSCZ - Sectors Allocation Comparison

Sectors	HEZU	HSCZ
Financial Services	24.7%	12.7%
Industrials	20.5%	24.1%
Technology	16.8%	10.8%
Consumer Cyclical	7.9%	12.6%
Utilities	6.5%	2.1%
Healthcare	5.8%	6.1%
Consumer Defensive	5.5%	4.9%
Communication Services	3.9%	3.7%
Basic Materials	3.9%	9.8%
Energy	3.5%	3.3%
Real Estate	0.8%	10.0%

Return for Risk

HEZU vs. HSCZ — Risk / Return Rank

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

HEZU

HEZU Risk / Return Rank: 67
HEZU Sharpe Ratio Rank: 67
HEZU Sortino Ratio Rank: 68
HEZU Omega Ratio Rank: 66
HEZU Calmar Ratio Rank: 64
HEZU Martin Ratio Rank: 70

HSCZ

HSCZ Risk / Return Rank: 78
HSCZ Sharpe Ratio Rank: 82
HSCZ Sortino Ratio Rank: 82
HSCZ Omega Ratio Rank: 81
HSCZ Calmar Ratio Rank: 68
HSCZ Martin Ratio Rank: 77

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.

HEZU vs. HSCZ - 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 Small Cap ETF (HSCZ). 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	HSCZ	Difference
Sharpe ratio: Return per unit of total volatility	1.54	1.88	-0.34
Sortino ratio: Return per unit of downside risk	2.22	2.67	-0.45
Omega ratio: Gain probability vs. loss probability	1.28	1.34	-0.06
Calmar ratio: Return relative to maximum drawdown	2.21	2.34	-0.13
Martin ratio: Return relative to average drawdown	8.63	9.75	-1.12

HEZU vs. HSCZ - Sharpe Ratio Comparison

The current HEZU Sharpe Ratio is 1.54, which is comparable to the HSCZ Sharpe Ratio of 1.88. The chart below compares the historical Sharpe Ratios of HEZU and HSCZ, 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. HSCZ - Drawdown Comparison

The maximum HEZU drawdown since its inception was -38.80%, which is greater than HSCZ's maximum drawdown of -34.89%. Use the drawdown chart below to compare losses from any high point for HEZU and HSCZ.

Drawdown Indicators

	HEZU	HSCZ	Difference
Max Drawdown Largest peak-to-trough decline	-38.80%	-34.89%	-3.91%
Max Drawdown (1Y) Largest decline over 1 year	-10.95%	-9.61%	-1.34%
Max Drawdown (3Y) Largest decline over 3 years	-14.83%	-12.81%	-2.02%
Max Drawdown (5Y) Largest decline over 5 years	-22.79%	-20.11%	-2.68%
Max Drawdown (10Y) Largest decline over 10 years	-38.80%	-34.89%	-3.91%
Current Drawdown Current decline from peak	-1.27%	-1.77%	+0.50%
Average Drawdown Average peak-to-trough decline	-5.77%	-4.60%	-1.17%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.81%	2.31%	+0.50%

Volatility

HEZU vs. HSCZ - Volatility Comparison

iShares Currency Hedged MSCI Eurozone ETF (HEZU) has a higher volatility of 4.25% compared to iShares Currency Hedged MSCI EAFE Small Cap ETF (HSCZ) at 3.90%. This indicates that HEZU's price experiences larger fluctuations and is considered to be riskier than HSCZ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	HEZU	HSCZ	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.25%	3.90%	+0.35%
Volatility (6M) Calculated over the trailing 6-month period	13.47%	10.15%	+3.32%
Volatility (1Y) Calculated over the trailing 1-year period	15.80%	11.99%	+3.81%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.61%	13.51%	+3.10%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.14%	15.35%	+2.79%

HEZU vs. HSCZ - Expense Ratio Comparison

HEZU has a 0.52% expense ratio, which is higher than HSCZ's 0.43% expense ratio.

Dividends

HEZU vs. HSCZ - Dividend Comparison

HEZU's dividend yield for the trailing twelve months is around 2.57%, less than HSCZ's 3.13% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
HEZU iShares Currency Hedged MSCI Eurozone ETF	2.57%	2.92%	2.77%	2.52%	23.26%	2.25%	2.32%	5.40%	3.48%	1.92%	3.11%	2.68%
HSCZ iShares Currency Hedged MSCI EAFE Small Cap ETF	3.13%	3.25%	3.26%	2.98%	26.91%	2.90%	1.46%	4.66%	6.15%	2.52%	2.57%	1.75%

Frequently Asked Questions

Can I hold both HEZU and HSCZ in my portfolio?

HEZU and HSCZ 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 HSCZ?

HEZU has higher volatility (4.25%) compared to HSCZ (3.90%). In terms of maximum drawdown, HEZU dropped -38.80% vs HSCZ's -34.89%.

Which ETF is better, HEZU or HSCZ?

On 10-year performance, HEZU leads with 12.59% vs 11.86% for HSCZ. On fees, HSCZ is cheaper at 0.43% per year. On volatility, HSCZ has been the lower-risk option at 3.90%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, HEZU or HSCZ?

Over the 10-year period, HEZU has performed better with a 12.59% return vs 11.86%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, HEZU or HSCZ?

HSCZ is cheaper with a 0.43% expense ratio, compared with 0.52% for HEZU.

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

HSCZ has the higher dividend yield at 3.13%, compared with 2.57% for HEZU.

What is the main difference between HEZU and HSCZ?

HEZU is categorized as Europe Equities, while HSCZ is Foreign Small & Mid Cap Equities. HEZU tracks MSCI EMU 100% USD Hedged Index, while HSCZ tracks MSCI EAFE Small-Cap 100% Hedged to USD Index. Their fees differ too: 0.52% for HEZU and 0.43% for HSCZ.

Which has better risk-adjusted returns?

HSCZ currently has the higher Sharpe Ratio (1.88 vs 1.54), 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.