IEUS vs. HEZU

Last updated Jun 26, 2026

IEUS (iShares MSCI Europe Small-Cap ETF) and HEZU (iShares Currency Hedged MSCI Eurozone ETF) are both Europe Equities funds from iShares - IEUS tracks the MSCI Europe Small Cap Index while HEZU tracks the MSCI EMU 100% USD Hedged Index. Both are passively managed. Over the past 10 years, IEUS returned 9.01%/yr vs 13.39%/yr for HEZU. A 0.73 correlation means they provide meaningful diversification when combined. IEUS charges 0.40%/yr vs 0.52%/yr for HEZU.

Performance

IEUS vs. HEZU - Performance Comparison

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

Returns By Period

In the year-to-date period, IEUS achieves a 3.19% return, which is significantly lower than HEZU's 13.40% return. Over the past 10 years, IEUS has underperformed HEZU with an annualized return of 9.01%, while HEZU has yielded a comparatively higher 13.39% annualized return.

IEUS

• 1D: 0.53%
• 1M: -4.28%
• YTD: 3.19%
• 6M: 3.33%
• 1Y: 9.76%
• 3Y*: 14.02%
• 5Y*: 2.86%
• 10Y*: 9.01%

HEZU

• 1D: 1.06%
• 1M: 3.04%
• YTD: 13.40%
• 6M: 13.42%
• 1Y: 26.69%
• 3Y*: 19.44%
• 5Y*: 12.98%
• 10Y*: 13.39%

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

IEUS vs. HEZU - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IEUS iShares MSCI Europe Small-Cap ETF	3.19%	32.06%	-1.59%	17.34%	-27.07%	15.06%	12.99%	29.72%	-20.17%	35.04%
HEZU iShares Currency Hedged MSCI Eurozone ETF	13.40%	25.93%	10.63%	22.98%	-9.54%	23.51%	0.52%	29.48%	-10.23%	14.26%

Correlation

The correlation between IEUS and HEZU is 0.76, 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	0.76
Correlation (3Y) Calculated over the trailing 3-year period	0.75
Correlation (5Y) Calculated over the trailing 5-year period	0.79
Correlation (10Y) Calculated over the trailing 10-year period	0.76
Correlation (All Time) Calculated using the full available price history since Aug 7, 2014	0.73

The correlation between IEUS and HEZU has been stable across timeframes, ranging from 0.73 to 0.79 - a consistent structural relationship.

IEUS vs. HEZU - Sectors Allocation Comparison

Sectors	IEUS	HEZU
Industrials	26.6%	21.0%
Financial Services	15.0%	23.8%
Consumer Cyclical	12.1%	8.4%
Real Estate	8.3%	0.9%
Technology	7.9%	16.1%
Healthcare	7.5%	5.6%
Basic Materials	7.4%	4.1%
Energy	4.8%	3.9%
Communication Services	4.5%	4.3%
Consumer Defensive	3.6%	5.5%
Utilities	2.3%	6.4%

Return for Risk

IEUS vs. HEZU — Risk / Return Rank

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

IEUS

IEUS Risk / Return Rank: 19
IEUS Sharpe Ratio Rank: 19
IEUS Sortino Ratio Rank: 19
IEUS Omega Ratio Rank: 18
IEUS Calmar Ratio Rank: 19
IEUS Martin Ratio Rank: 22

HEZU

HEZU Risk / Return Rank: 60
HEZU Sharpe Ratio Rank: 59
HEZU Sortino Ratio Rank: 61
HEZU Omega Ratio Rank: 59
HEZU Calmar Ratio Rank: 57
HEZU Martin Ratio Rank: 61

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.

IEUS vs. HEZU - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI Europe Small-Cap ETF (IEUS) and iShares Currency Hedged MSCI Eurozone ETF (HEZU). 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.

	IEUS	HEZU	Difference
Sharpe ratio: Return per unit of total volatility	0.61	1.73	-1.13
Sortino ratio: Return per unit of downside risk	0.96	2.49	-1.52
Omega ratio: Gain probability vs. loss probability	1.12	1.32	-0.20
Calmar ratio: Return relative to maximum drawdown	0.77	2.45	-1.68
Martin ratio: Return relative to average drawdown	2.57	9.61	-7.03

IEUS vs. HEZU - Sharpe Ratio Comparison

The current IEUS Sharpe Ratio is 0.61, which is lower than the HEZU Sharpe Ratio of 1.73. The chart below compares the historical Sharpe Ratios of IEUS and HEZU, 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

IEUS vs. HEZU - Drawdown Comparison

The maximum IEUS drawdown since its inception was -63.09%, which is greater than HEZU's maximum drawdown of -38.80%. Use the drawdown chart below to compare losses from any high point for IEUS and HEZU.

Drawdown Indicators

	IEUS	HEZU	Difference
Max Drawdown Largest peak-to-trough decline	-63.09%	-38.80%	-24.29%
Max Drawdown (1Y) Largest decline over 1 year	-12.81%	-10.95%	-1.86%
Max Drawdown (3Y) Largest decline over 3 years	-18.05%	-14.83%	-3.22%
Max Drawdown (5Y) Largest decline over 5 years	-44.86%	-22.79%	-22.07%
Max Drawdown (10Y) Largest decline over 10 years	-44.86%	-38.80%	-6.06%
Current Drawdown Current decline from peak	-4.28%	-1.13%	-3.15%
Average Drawdown Average peak-to-trough decline	-15.49%	-5.81%	-9.68%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.80%	2.78%	+1.02%

Volatility

IEUS vs. HEZU - Volatility Comparison

The current volatility for iShares MSCI Europe Small-Cap ETF (IEUS) is 4.84%, while iShares Currency Hedged MSCI Eurozone ETF (HEZU) has a volatility of 5.41%. This indicates that IEUS experiences smaller price fluctuations and is considered to be less risky than HEZU based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IEUS	HEZU	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.84%	5.41%	-0.57%
Volatility (6M) Calculated over the trailing 6-month period	13.67%	13.26%	+0.41%
Volatility (1Y) Calculated over the trailing 1-year period	16.19%	15.55%	+0.64%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.84%	16.60%	+4.24%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.09%	18.17%	+1.92%

IEUS vs. HEZU - Expense Ratio Comparison

IEUS has a 0.40% expense ratio, which is lower than HEZU's 0.52% expense ratio.

Dividends

IEUS vs. HEZU - Dividend Comparison

IEUS's dividend yield for the trailing twelve months is around 3.25%, more than HEZU's 2.58% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
HEZU iShares Currency Hedged MSCI Eurozone ETF	2.58%	2.92%	2.77%	2.52%	23.26%	2.25%	2.32%	5.40%	3.48%	1.92%	3.11%	2.68%
IEUS iShares MSCI Europe Small-Cap ETF	3.25%	3.19%	3.25%	2.97%	3.00%	2.63%	1.21%	4.03%	3.21%	2.13%	2.48%	2.06%

Frequently Asked Questions

Can I hold both IEUS and HEZU in my portfolio?

IEUS and HEZU have a correlation of 0.76, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IEUS or HEZU?

HEZU has higher volatility (5.41%) compared to IEUS (4.84%). In terms of maximum drawdown, IEUS dropped -63.09% vs HEZU's -38.80%.

Which ETF is better, IEUS or HEZU?

On 10-year performance, HEZU leads with 13.39% vs 9.01% for IEUS. On fees, IEUS is cheaper at 0.40% per year. On volatility, IEUS has been the lower-risk option at 4.84%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IEUS or HEZU?

Over the 10-year period, HEZU has performed better with a 13.39% return vs 9.01%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IEUS or HEZU?

IEUS is cheaper with a 0.40% expense ratio, compared with 0.52% for HEZU.

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

IEUS has the higher dividend yield at 3.25%, compared with 2.58% for HEZU.

What is the main difference between IEUS and HEZU?

IEUS tracks MSCI Europe Small Cap Index, while HEZU tracks MSCI EMU 100% USD Hedged Index. Their fees differ too: 0.40% for IEUS and 0.52% for HEZU.

Which has better risk-adjusted returns?

HEZU currently has the higher Sharpe Ratio (1.73 vs 0.61), 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.