JAPN vs. DFJ

Last updated Aug 1, 2026

JAPN (Horizon Kinetics Japan Owner Operator ETF) and DFJ (WisdomTree Japan SmallCap Dividend Fund) are both Japan Equities funds. JAPN is actively managed, while DFJ is passively managed. Over the past year, JAPN returned -8.89% vs 23.77% for DFJ. Their 0.61 correlation means they have sometimes moved together and sometimes differently. JAPN charges 0.85%/yr vs 0.58%/yr for DFJ.

Performance

JAPN vs. DFJ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Horizon Kinetics Japan Owner Operator ETF (JAPN) 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, JAPN achieves a -2.38% return, which is significantly lower than DFJ's 12.43% return.

JAPN

• 1D: 0.26%
• 1M: 7.93%
• 6M: 2.43%
• YTD: -2.38%
• 1Y: -8.89%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 0.53%

DFJ

• 1D: -0.21%
• 1M: -0.56%
• 6M: 5.79%
• YTD: 12.43%
• 1Y: 23.77%
• 3Y*: 18.59%
• 5Y*: 10.25%
• 10Y*: 8.80%
• ALL TIME*: 5.90%

*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)
DFJ WisdomTree Japan SmallCap Dividend Fund	$4.27M	$3.89M	$3.95M
JAPN Horizon Kinetics Japan Owner Operator ETF	$244.63K	$159.98K	$135.76K

JAPN vs. DFJ - Yearly Performance Comparison

	2026 (YTD)	2025
JAPN Horizon Kinetics Japan Owner Operator ETF	-2.38%	3.10%
DFJ WisdomTree Japan SmallCap Dividend Fund	12.43%	20.43%

Correlation

The correlation between JAPN and DFJ is 0.61, 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.	0.61
Correlation (All Time) Calculated using the full available price history since May 13, 2025	0.61

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

Return for Risk

JAPN vs. DFJ — Risk / Return Rank

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

JAPN

JAPN Risk / Return Rank: 7
JAPN Sharpe Ratio Rank: 6
JAPN Sortino Ratio Rank: 6
JAPN Omega Ratio Rank: 6
JAPN Calmar Ratio Rank: 7
JAPN Martin Ratio Rank: 8

DFJ

DFJ Risk / Return Rank: 60
DFJ Sharpe Ratio Rank: 66
DFJ Sortino Ratio Rank: 66
DFJ Omega Ratio Rank: 61
DFJ Calmar Ratio Rank: 58
DFJ Martin Ratio Rank: 47

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.

JAPN vs. DFJ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Horizon Kinetics Japan Owner Operator ETF (JAPN) 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.

	JAPN	DFJ	Difference
Sharpe ratio: Return per unit of total volatility	-0.37	1.51	-1.88
Sortino ratio: Return per unit of downside risk	-0.40	2.18	-2.58
Omega ratio: Gain probability vs. loss probability	0.95	1.26	-0.31
Calmar ratio: Return relative to maximum drawdown	-0.31	2.04	-2.35
Martin ratio: Return relative to average drawdown	-0.51	5.39	-5.90

JAPN vs. DFJ - Sharpe Ratio Comparison

The current JAPN Sharpe Ratio is -0.37, which is lower than the DFJ Sharpe Ratio of 1.51. The chart below compares the historical Sharpe Ratios of JAPN 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

JAPN vs. DFJ - Drawdown Comparison

The maximum JAPN drawdown since its inception was -23.94%, smaller than the maximum DFJ drawdown of -46.00%. Use the drawdown chart below to compare losses from any high point for JAPN and DFJ.

Drawdown Indicators

	JAPN	DFJ	Difference
Max Drawdown Largest peak-to-trough decline	-23.94%	-46.00%	+22.06%
Max Drawdown (1Y) Largest decline over 1 year	-23.94%	-13.03%	-10.91%
Max Drawdown (3Y) Largest decline over 3 years	—	-13.03%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-29.71%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-40.02%	—
Current Drawdown Current decline from peak	-13.16%	-4.04%	-9.12%
Average Drawdown Average peak-to-trough decline	-10.71%	-11.10%	+0.39%
Ulcer Index Depth and duration of drawdowns from previous peaks	14.71%	4.91%	+9.80%

Volatility

JAPN vs. DFJ - Volatility Comparison

Horizon Kinetics Japan Owner Operator ETF (JAPN) has a higher volatility of 6.83% compared to WisdomTree Japan SmallCap Dividend Fund (DFJ) at 6.34%. This indicates that JAPN'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

	JAPN	DFJ	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.83%	6.34%	+0.49%
Volatility (6M) Calculated over the trailing 6-month period	16.88%	14.82%	+2.06%
Volatility (1Y) Calculated over the trailing 1-year period	20.20%	17.57%	+2.63%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.84%	16.11%	+3.73%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.84%	17.00%	+2.84%

JAPN vs. DFJ - Expense Ratio Comparison

JAPN has a 0.85% expense ratio, which is higher than DFJ's 0.58% expense ratio.

Dividends

JAPN vs. DFJ - Dividend Comparison

JAPN's dividend yield for the trailing twelve months is around 0.25%, less than DFJ's 2.61% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DFJ WisdomTree Japan SmallCap Dividend Fund	2.61%	2.68%	2.46%	2.43%	2.62%	2.07%	2.59%	2.24%	1.89%	1.60%	1.76%	1.23%
JAPN Horizon Kinetics Japan Owner Operator ETF	0.25%	0.24%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both JAPN and DFJ in my portfolio?

JAPN and DFJ have a correlation of 0.61, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, JAPN or DFJ?

JAPN has higher volatility (6.83%) compared to DFJ (6.34%). In terms of maximum drawdown, JAPN dropped -23.94% vs DFJ's -46.00%.

Which ETF is better, JAPN or DFJ?

On 1-year performance, DFJ leads with 23.77% vs -8.89% for JAPN. On fees, DFJ is cheaper at 0.58% per year. On volatility, DFJ has been the lower-risk option at 6.34%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, JAPN or DFJ?

Over the 1-year period, DFJ has performed better with a 23.77% return vs -8.89%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, JAPN or DFJ?

DFJ is cheaper with a 0.58% expense ratio, compared with 0.85% for JAPN.

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

DFJ has the higher dividend yield at 2.61%, compared with 0.25% for JAPN.

What is the main difference between JAPN and DFJ?

They also come from different issuers: Horizon and WisdomTree. Their fees differ too: 0.85% for JAPN and 0.58% for DFJ.

Which has better risk-adjusted returns?

DFJ currently has the higher Sharpe Ratio (1.51 vs -0.37), 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.