IEFA vs. DXJ

Last updated Jul 22, 2026

IEFA (iShares Core MSCI EAFE ETF) and DXJ (WisdomTree Japan Hedged Equity Fund) are both exchange-traded funds - IEFA is a Foreign Large Cap Equities fund tracking the MSCI EAFE IMI Index (Net), while DXJ is a Japan Equities fund tracking the WisdomTree Japan Hedged Equity Index. Both are passively managed. Over the past 10 years, IEFA returned 9.48%/yr vs 18.71%/yr for DXJ. A 0.68 correlation means they provide meaningful diversification when combined. IEFA charges 0.07%/yr vs 0.48%/yr for DXJ.

Performance

IEFA vs. DXJ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Core MSCI EAFE ETF (IEFA) and WisdomTree Japan Hedged Equity Fund (DXJ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, IEFA achieves a 10.11% return, which is significantly lower than DXJ's 23.23% return. Over the past 10 years, IEFA has underperformed DXJ with an annualized return of 9.48%, while DXJ has yielded a comparatively higher 18.71% annualized return.

IEFA

• 1D: 1.41%
• 1M: -0.38%
• 6M: 7.75%
• YTD: 10.11%
• 1Y: 20.91%
• 3Y*: 15.73%
• 5Y*: 8.84%
• 10Y*: 9.48%
• ALL TIME*: 8.43%

DXJ

• 1D: 2.57%
• 1M: -0.48%
• 6M: 16.68%
• YTD: 23.23%
• 1Y: 55.39%
• 3Y*: 31.84%
• 5Y*: 27.58%
• 10Y*: 18.71%
• ALL TIME*: 9.54%

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

IEFA vs. DXJ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IEFA iShares Core MSCI EAFE ETF	10.11%	32.08%	3.26%	17.95%	-15.24%	11.63%	8.18%	22.64%	-14.14%	26.57%
DXJ WisdomTree Japan Hedged Equity Fund	23.23%	32.78%	29.83%	42.04%	5.96%	17.99%	3.94%	18.94%	-19.78%	22.81%

Correlation

The correlation between IEFA and DXJ is 0.66, 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	0.66
Correlation (3Y) Calculated over the trailing 3-year period	0.61
Correlation (5Y) Calculated over the trailing 5-year period	0.64
Correlation (10Y) Calculated over the trailing 10-year period	0.68
Correlation (All Time) Calculated using the full available price history since Oct 24, 2012	0.68

The correlation between IEFA and DXJ has been stable across timeframes, ranging from 0.61 to 0.68 - a consistent structural relationship.

IEFA vs. DXJ - Sectors Allocation Comparison

Sectors	IEFA	DXJ
Financial Services	24.2%	18.3%
Industrials	19.4%	27.9%
Technology	12.1%	13.2%
Healthcare	9.6%	6.8%
Consumer Cyclical	7.8%	15.2%
Basic Materials	6.5%	8.5%
Consumer Defensive	6.4%	4.7%
Communication Services	3.7%	2.3%
Energy	3.5%	1.7%
Utilities	3.5%	0.1%
Real Estate	2.7%	-

Return for Risk

IEFA vs. DXJ — Risk / Return Rank

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

IEFA

IEFA Risk / Return Rank: 52
IEFA Sharpe Ratio Rank: 53
IEFA Sortino Ratio Rank: 53
IEFA Omega Ratio Rank: 51
IEFA Calmar Ratio Rank: 48
IEFA Martin Ratio Rank: 55

DXJ

DXJ Risk / Return Rank: 94
DXJ Sharpe Ratio Rank: 96
DXJ Sortino Ratio Rank: 94
DXJ Omega Ratio Rank: 94
DXJ Calmar Ratio Rank: 94
DXJ Martin Ratio Rank: 94

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.

IEFA vs. DXJ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Core MSCI EAFE ETF (IEFA) and WisdomTree Japan Hedged Equity Fund (DXJ). 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.

	IEFA	DXJ	Difference
Sharpe ratio: Return per unit of total volatility	1.34	3.00	-1.66
Sortino ratio: Return per unit of downside risk	1.95	3.91	-1.96
Omega ratio: Gain probability vs. loss probability	1.24	1.53	-0.29
Calmar ratio: Return relative to maximum drawdown	1.83	5.07	-3.24
Martin ratio: Return relative to average drawdown	6.90	19.07	-12.17

IEFA vs. DXJ - Sharpe Ratio Comparison

The current IEFA Sharpe Ratio is 1.34, which is lower than the DXJ Sharpe Ratio of 3.00. The chart below compares the historical Sharpe Ratios of IEFA and DXJ, 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

IEFA vs. DXJ - Drawdown Comparison

The maximum IEFA drawdown since its inception was -34.78%, smaller than the maximum DXJ drawdown of -49.63%. Use the drawdown chart below to compare losses from any high point for IEFA and DXJ.

Drawdown Indicators

	IEFA	DXJ	Difference
Max Drawdown Largest peak-to-trough decline	-34.78%	-49.63%	+14.85%
Max Drawdown (1Y) Largest decline over 1 year	-11.50%	-10.98%	-0.52%
Max Drawdown (3Y) Largest decline over 3 years	-13.76%	-22.19%	+8.43%
Max Drawdown (5Y) Largest decline over 5 years	-30.41%	-22.19%	-8.22%
Max Drawdown (10Y) Largest decline over 10 years	-34.78%	-39.14%	+4.36%
Current Drawdown Current decline from peak	-1.41%	-1.82%	+0.41%
Average Drawdown Average peak-to-trough decline	-6.64%	-14.26%	+7.62%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.04%	2.91%	+0.13%

Volatility

IEFA vs. DXJ - Volatility Comparison

The current volatility for iShares Core MSCI EAFE ETF (IEFA) is 4.22%, while WisdomTree Japan Hedged Equity Fund (DXJ) has a volatility of 6.87%. This indicates that IEFA experiences smaller price fluctuations and is considered to be less risky than DXJ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IEFA	DXJ	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.22%	6.87%	-2.65%
Volatility (6M) Calculated over the trailing 6-month period	13.52%	14.64%	-1.12%
Volatility (1Y) Calculated over the trailing 1-year period	15.67%	18.55%	-2.88%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.59%	19.07%	-2.48%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.02%	19.94%	-2.92%

IEFA vs. DXJ - Expense Ratio Comparison

IEFA has a 0.07% expense ratio, which is lower than DXJ's 0.48% expense ratio.

Dividends

IEFA vs. DXJ - Dividend Comparison

IEFA's dividend yield for the trailing twelve months is around 3.39%, more than DXJ's 0.95% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DXJ WisdomTree Japan Hedged Equity Fund	0.95%	1.29%	3.48%	3.44%	3.02%	2.64%	2.53%	2.47%	2.92%	2.30%	1.98%	5.95%
IEFA iShares Core MSCI EAFE ETF	3.39%	3.55%	3.47%	3.20%	2.70%	3.32%	1.90%	3.18%	3.46%	2.57%	2.96%	2.63%

Frequently Asked Questions

Can I hold both IEFA and DXJ in my portfolio?

IEFA and DXJ have a correlation of 0.66, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IEFA or DXJ?

DXJ has higher volatility (6.87%) compared to IEFA (4.22%). In terms of maximum drawdown, IEFA dropped -34.78% vs DXJ's -49.63%.

Which ETF is better, IEFA or DXJ?

On 10-year performance, DXJ leads with 18.71% vs 9.48% for IEFA. On fees, IEFA is cheaper at 0.07% per year. On volatility, IEFA has been the lower-risk option at 4.22%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IEFA or DXJ?

Over the 10-year period, DXJ has performed better with a 18.71% return vs 9.48%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IEFA or DXJ?

IEFA is cheaper with a 0.07% expense ratio, compared with 0.48% for DXJ.

Which ETF pays a higher dividend yield, IEFA or DXJ?

IEFA has the higher dividend yield at 3.39%, compared with 0.95% for DXJ.

What is the main difference between IEFA and DXJ?

IEFA is categorized as Foreign Large Cap Equities, while DXJ is Japan Equities. IEFA tracks MSCI EAFE IMI Index (Net), while DXJ tracks WisdomTree Japan Hedged Equity Index. They also come from different issuers: iShares and WisdomTree. Their fees differ too: 0.07% for IEFA and 0.48% for DXJ.

Which has better risk-adjusted returns?

DXJ currently has the higher Sharpe Ratio (3.00 vs 1.34), 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.