IVLU vs. DFJ

Last updated Jun 13, 2026

IVLU (iShares MSCI International Value Factor ETF) and DFJ (WisdomTree Japan SmallCap Dividend Fund) are both exchange-traded funds - IVLU is a Foreign Large Cap Equities fund tracking the MSCI World ex USA Enhanced Value Index, while DFJ is a Japan Equities fund tracking the WisdomTree Japan SmallCap Dividend Index. Both are passively managed. Over the past 10 years, IVLU returned 11.63%/yr vs 9.18%/yr for DFJ. A 0.71 correlation means they provide meaningful diversification when combined. IVLU charges 0.30%/yr vs 0.58%/yr for DFJ.

Performance

IVLU vs. DFJ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares MSCI International Value Factor ETF (IVLU) and WisdomTree Japan SmallCap Dividend Fund (DFJ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, IVLU achieves a 12.96% return, which is significantly higher than DFJ's 10.31% return. Over the past 10 years, IVLU has outperformed DFJ with an annualized return of 11.63%, while DFJ has yielded a comparatively lower 9.18% annualized return.

IVLU

• 1D: 0.56%
• 1M: 0.66%
• YTD: 12.96%
• 6M: 14.33%
• 1Y: 35.32%
• 3Y*: 23.53%
• 5Y*: 14.06%
• 10Y*: 11.63%

DFJ

• 1D: 0.31%
• 1M: -1.56%
• YTD: 10.31%
• 6M: 11.99%
• 1Y: 28.50%
• 3Y*: 18.53%
• 5Y*: 9.75%
• 10Y*: 9.18%

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

IVLU vs. DFJ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IVLU iShares MSCI International Value Factor ETF	12.96%	46.09%	6.76%	20.07%	-5.73%	15.60%	-4.50%	15.60%	-15.10%	23.10%
DFJ WisdomTree Japan SmallCap Dividend Fund	10.31%	31.90%	2.80%	21.81%	-9.00%	0.38%	1.29%	16.98%	-18.53%	32.14%

Correlation

The correlation between IVLU and DFJ is 0.71, 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	0.71
Correlation (3Y) Calculated over the trailing 3-year period	0.71
Correlation (5Y) Calculated over the trailing 5-year period	0.71
Correlation (10Y) Calculated over the trailing 10-year period	0.73
Correlation (All Time) Calculated using the full available price history since Jul 15, 2015	0.71

The correlation between IVLU and DFJ has been stable across timeframes, ranging from 0.71 to 0.73 - a consistent structural relationship.

IVLU vs. DFJ - Sectors Allocation Comparison

Sectors	IVLU	DFJ
Financial Services	25.3%	13.3%
Industrials	17.2%	27.0%
Technology	11.3%	12.6%
Healthcare	9.7%	4.1%
Basic Materials	7.5%	13.3%
Consumer Cyclical	7.4%	16.1%
Consumer Defensive	6.3%	7.1%
Energy	5.1%	0.6%
Communication Services	4.0%	1.5%
Utilities	3.3%	1.6%
Real Estate	1.5%	2.9%

Return for Risk

IVLU vs. DFJ — Risk / Return Rank

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

IVLU

IVLU Risk / Return Rank: 73
IVLU Sharpe Ratio Rank: 78
IVLU Sortino Ratio Rank: 77
IVLU Omega Ratio Rank: 76
IVLU Calmar Ratio Rank: 67
IVLU Martin Ratio Rank: 69

DFJ

DFJ Risk / Return Rank: 50
DFJ Sharpe Ratio Rank: 55
DFJ Sortino Ratio Rank: 55
DFJ Omega Ratio Rank: 52
DFJ Calmar Ratio Rank: 48
DFJ Martin Ratio Rank: 42

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.

IVLU vs. DFJ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI International Value Factor ETF (IVLU) and WisdomTree Japan SmallCap Dividend Fund (DFJ). 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.

	IVLU	DFJ	Difference
Sharpe ratio: Return per unit of total volatility	2.17	1.65	+0.52
Sortino ratio: Return per unit of downside risk	2.98	2.34	+0.64
Omega ratio: Gain probability vs. loss probability	1.39	1.29	+0.10
Calmar ratio: Return relative to maximum drawdown	2.90	2.11	+0.79
Martin ratio: Return relative to average drawdown	11.01	5.97	+5.04

IVLU vs. DFJ - Sharpe Ratio Comparison

The current IVLU Sharpe Ratio is 2.17, which is higher than the DFJ Sharpe Ratio of 1.65. The chart below compares the historical Sharpe Ratios of IVLU and DFJ, 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

IVLU vs. DFJ - Drawdown Comparison

The maximum IVLU drawdown since its inception was -41.85%, smaller than the maximum DFJ drawdown of -46.00%. Use the drawdown chart below to compare losses from any high point for IVLU and DFJ.

Drawdown Indicators

	IVLU	DFJ	Difference
Max Drawdown Largest peak-to-trough decline	-41.85%	-46.00%	+4.15%
Max Drawdown (1Y) Largest decline over 1 year	-11.69%	-13.03%	+1.34%
Max Drawdown (3Y) Largest decline over 3 years	-15.48%	-13.03%	-2.45%
Max Drawdown (5Y) Largest decline over 5 years	-26.04%	-29.71%	+3.67%
Max Drawdown (10Y) Largest decline over 10 years	-41.85%	-40.02%	-1.83%
Current Drawdown Current decline from peak	-0.53%	-5.85%	+5.32%
Average Drawdown Average peak-to-trough decline	-8.57%	-11.15%	+2.58%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.09%	4.61%	-1.52%

Volatility

IVLU vs. DFJ - Volatility Comparison

iShares MSCI International Value Factor ETF (IVLU) has a higher volatility of 5.44% compared to WisdomTree Japan SmallCap Dividend Fund (DFJ) at 4.87%. This indicates that IVLU's price experiences larger fluctuations and is considered to be riskier than DFJ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IVLU	DFJ	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.44%	4.87%	+0.57%
Volatility (6M) Calculated over the trailing 6-month period	12.85%	13.79%	-0.94%
Volatility (1Y) Calculated over the trailing 1-year period	15.65%	16.68%	-1.03%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.58%	15.94%	+0.64%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.66%	16.97%	+0.69%

IVLU vs. DFJ - Expense Ratio Comparison

IVLU has a 0.30% expense ratio, which is lower than DFJ's 0.58% expense ratio.

Dividends

IVLU vs. DFJ - Dividend Comparison

IVLU's dividend yield for the trailing twelve months is around 3.28%, more than DFJ's 2.41% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DFJ WisdomTree Japan SmallCap Dividend Fund	2.41%	2.68%	2.46%	2.43%	2.62%	2.07%	2.59%	2.24%	1.89%	1.60%	1.76%	1.23%
IVLU iShares MSCI International Value Factor ETF	3.28%	3.71%	4.46%	4.69%	3.59%	3.47%	2.05%	3.53%	2.82%	2.87%	2.53%	0.93%

Frequently Asked Questions

Can I hold both IVLU and DFJ in my portfolio?

IVLU and DFJ have a correlation of 0.71, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IVLU or DFJ?

IVLU has higher volatility (5.44%) compared to DFJ (4.87%). In terms of maximum drawdown, IVLU dropped -41.85% vs DFJ's -46.00%.

Which ETF is better, IVLU or DFJ?

On 10-year performance, IVLU leads with 11.63% vs 9.18% for DFJ. On fees, IVLU is cheaper at 0.30% per year. On volatility, DFJ has been the lower-risk option at 4.87%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IVLU or DFJ?

Over the 10-year period, IVLU has performed better with a 11.63% return vs 9.18%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IVLU or DFJ?

IVLU is cheaper with a 0.30% expense ratio, compared with 0.58% for DFJ.

Which ETF pays a higher dividend yield, IVLU or DFJ?

IVLU has the higher dividend yield at 3.28%, compared with 2.41% for DFJ.

What is the main difference between IVLU and DFJ?

IVLU is categorized as Foreign Large Cap Equities, while DFJ is Japan Equities. IVLU tracks MSCI World ex USA Enhanced Value Index, while DFJ tracks WisdomTree Japan SmallCap Dividend Index. They also come from different issuers: iShares and WisdomTree. Their fees differ too: 0.30% for IVLU and 0.58% for DFJ.

Which has better risk-adjusted returns?

IVLU currently has the higher Sharpe Ratio (2.17 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.