IPAC vs. DXJ

Last updated Jul 14, 2026

IPAC (iShares Core MSCI Pacific ETF) and DXJ (WisdomTree Japan Hedged Equity Fund) are both exchange-traded funds - IPAC is a Asia Pacific Equities fund tracking the MSCI Pacific Investable Market Index, while DXJ is a Japan Equities fund tracking the WisdomTree Japan Hedged Equity Index. Both are passively managed. Over the past 10 years, IPAC returned 8.77%/yr vs 18.62%/yr for DXJ. A 0.78 correlation means they provide meaningful diversification when combined. IPAC charges 0.09%/yr vs 0.48%/yr for DXJ.

Performance

IPAC vs. DXJ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Core MSCI Pacific ETF (IPAC) 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, IPAC achieves a 13.28% return, which is significantly lower than DXJ's 22.23% return. Over the past 10 years, IPAC has underperformed DXJ with an annualized return of 8.77%, while DXJ has yielded a comparatively higher 18.62% annualized return.

IPAC

• 1D: -1.50%
• 1M: 0.55%
• 6M: 8.51%
• YTD: 13.28%
• 1Y: 27.10%
• 3Y*: 15.99%
• 5Y*: 7.79%
• 10Y*: 8.77%

DXJ

• 1D: -0.98%
• 1M: 2.95%
• 6M: 14.85%
• YTD: 22.23%
• 1Y: 54.82%
• 3Y*: 32.72%
• 5Y*: 27.03%
• 10Y*: 18.62%

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

IPAC vs. DXJ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IPAC iShares Core MSCI Pacific ETF	13.28%	25.16%	6.18%	14.51%	-13.68%	3.09%	12.39%	19.44%	-12.78%	25.97%
DXJ WisdomTree Japan Hedged Equity Fund	22.23%	32.78%	29.83%	42.04%	5.96%	17.99%	3.94%	18.94%	-19.78%	22.81%

Correlation

The correlation between IPAC and DXJ is 0.78, 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	0.78
Correlation (3Y) Calculated over the trailing 3-year period	0.75
Correlation (5Y) Calculated over the trailing 5-year period	0.75
Correlation (10Y) Calculated over the trailing 10-year period	0.77
Correlation (All Time) Calculated using the full available price history since Jun 12, 2014	0.78

The correlation between IPAC and DXJ has been stable across timeframes, ranging from 0.75 to 0.78 - a consistent structural relationship.

IPAC vs. DXJ - Sectors Allocation Comparison

Sectors	IPAC	DXJ
Financial Services	22.3%	18.3%
Industrials	19.5%	27.4%
Technology	18.2%	13.4%
Consumer Cyclical	10.4%	15.5%
Basic Materials	8.4%	8.5%
Healthcare	5.2%	6.8%
Real Estate	4.8%	-
Communication Services	3.8%	2.3%
Consumer Defensive	3.7%	4.7%
Utilities	1.6%	0.1%
Energy	1.6%	1.7%

Return for Risk

IPAC vs. DXJ — Risk / Return Rank

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

IPAC

IPAC Risk / Return Rank: 60
IPAC Sharpe Ratio Rank: 59
IPAC Sortino Ratio Rank: 58
IPAC Omega Ratio Rank: 61
IPAC Calmar Ratio Rank: 60
IPAC Martin Ratio Rank: 60

DXJ

DXJ Risk / Return Rank: 94
DXJ Sharpe Ratio Rank: 95
DXJ Sortino Ratio Rank: 94
DXJ Omega Ratio Rank: 94
DXJ Calmar Ratio Rank: 93
DXJ Martin Ratio Rank: 93

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.

IPAC vs. DXJ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Core MSCI Pacific ETF (IPAC) 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.

	IPAC	DXJ	Difference
Sharpe ratio: Return per unit of total volatility	1.57	3.02	-1.45
Sortino ratio: Return per unit of downside risk	2.21	3.93	-1.72
Omega ratio: Gain probability vs. loss probability	1.29	1.54	-0.25
Calmar ratio: Return relative to maximum drawdown	2.37	5.02	-2.65
Martin ratio: Return relative to average drawdown	8.37	19.10	-10.73

IPAC vs. DXJ - Sharpe Ratio Comparison

The current IPAC Sharpe Ratio is 1.57, which is lower than the DXJ Sharpe Ratio of 3.02. The chart below compares the historical Sharpe Ratios of IPAC 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

IPAC vs. DXJ - Drawdown Comparison

The maximum IPAC drawdown since its inception was -30.99%, smaller than the maximum DXJ drawdown of -49.63%. Use the drawdown chart below to compare losses from any high point for IPAC and DXJ.

Drawdown Indicators

	IPAC	DXJ	Difference
Max Drawdown Largest peak-to-trough decline	-30.99%	-49.63%	+18.64%
Max Drawdown (1Y) Largest decline over 1 year	-11.49%	-10.98%	-0.51%
Max Drawdown (3Y) Largest decline over 3 years	-15.45%	-22.19%	+6.74%
Max Drawdown (5Y) Largest decline over 5 years	-29.64%	-22.19%	-7.45%
Max Drawdown (10Y) Largest decline over 10 years	-30.99%	-39.14%	+8.15%
Current Drawdown Current decline from peak	-2.53%	-2.62%	+0.09%
Average Drawdown Average peak-to-trough decline	-7.43%	-14.27%	+6.84%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.24%	2.88%	+0.36%

Volatility

IPAC vs. DXJ - Volatility Comparison

The current volatility for iShares Core MSCI Pacific ETF (IPAC) is 5.94%, while WisdomTree Japan Hedged Equity Fund (DXJ) has a volatility of 6.56%. This indicates that IPAC 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

	IPAC	DXJ	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.94%	6.56%	-0.62%
Volatility (6M) Calculated over the trailing 6-month period	14.54%	14.47%	+0.07%
Volatility (1Y) Calculated over the trailing 1-year period	17.38%	18.30%	-0.92%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.81%	19.06%	-2.25%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.60%	19.93%	-3.33%

IPAC vs. DXJ - Expense Ratio Comparison

IPAC has a 0.09% expense ratio, which is lower than DXJ's 0.48% expense ratio.

Dividends

IPAC vs. DXJ - Dividend Comparison

IPAC's dividend yield for the trailing twelve months is around 3.90%, more than DXJ's 0.96% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DXJ WisdomTree Japan Hedged Equity Fund	0.96%	1.29%	3.48%	3.44%	3.02%	2.64%	2.53%	2.47%	2.92%	2.30%	1.98%	5.95%
IPAC iShares Core MSCI Pacific ETF	3.90%	4.32%	3.43%	3.16%	2.76%	4.03%	1.68%	3.37%	2.95%	2.98%	2.66%	2.60%

Frequently Asked Questions

Can I hold both IPAC and DXJ in my portfolio?

IPAC and DXJ have a correlation of 0.78, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IPAC or DXJ?

DXJ has higher volatility (6.56%) compared to IPAC (5.94%). In terms of maximum drawdown, IPAC dropped -30.99% vs DXJ's -49.63%.

Which ETF is better, IPAC or DXJ?

On 10-year performance, DXJ leads with 18.62% vs 8.77% for IPAC. On fees, IPAC is cheaper at 0.09% per year. On volatility, IPAC has been the lower-risk option at 5.94%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IPAC or DXJ?

Over the 10-year period, DXJ has performed better with a 18.62% return vs 8.77%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IPAC or DXJ?

IPAC is cheaper with a 0.09% expense ratio, compared with 0.48% for DXJ.

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

IPAC has the higher dividend yield at 3.90%, compared with 0.96% for DXJ.

What is the main difference between IPAC and DXJ?

IPAC is categorized as Asia Pacific Equities, while DXJ is Japan Equities. IPAC tracks MSCI Pacific Investable Market Index, while DXJ tracks WisdomTree Japan Hedged Equity Index. They also come from different issuers: iShares and WisdomTree. Their fees differ too: 0.09% for IPAC and 0.48% for DXJ.

Which has better risk-adjusted returns?

DXJ currently has the higher Sharpe Ratio (3.02 vs 1.57), 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.