RAYJ vs. DFJ

Last updated Jun 23, 2026

RAYJ (Rayliant SMDAM Japan Equity ETF) and DFJ (WisdomTree Japan SmallCap Dividend Fund) are both Japan Equities funds. RAYJ is actively managed, while DFJ is passively managed. Over the past year, RAYJ returned 44.44% vs 32.61% for DFJ. A 0.68 correlation means they provide meaningful diversification when combined. RAYJ charges 0.72%/yr vs 0.58%/yr for DFJ.

Performance

RAYJ vs. DFJ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Rayliant SMDAM Japan Equity ETF (RAYJ) 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, RAYJ achieves a 32.28% return, which is significantly higher than DFJ's 12.64% return.

RAYJ

• 1D: 2.06%
• 1M: 8.38%
• YTD: 32.28%
• 6M: 30.75%
• 1Y: 44.44%
• 3Y*: —
• 5Y*: —
• 10Y*: —

DFJ

• 1D: 1.03%
• 1M: 1.99%
• YTD: 12.64%
• 6M: 14.14%
• 1Y: 32.61%
• 3Y*: 20.67%
• 5Y*: 10.72%
• 10Y*: 9.55%

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

RAYJ vs. DFJ - Yearly Performance Comparison

	2026 (YTD)	2025	2024
RAYJ Rayliant SMDAM Japan Equity ETF	32.28%	20.16%	10.53%
DFJ WisdomTree Japan SmallCap Dividend Fund	12.64%	31.90%	-0.28%

Correlation

The correlation between RAYJ and DFJ is 0.59, 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	0.59
Correlation (All Time) Calculated using the full available price history since Apr 4, 2024	0.68

The correlation between RAYJ and DFJ has been stable across timeframes, ranging from 0.59 to 0.68 - a consistent structural relationship.

RAYJ vs. DFJ - Sectors Allocation Comparison

Sectors	RAYJ	DFJ
Industrials	29.6%	27.1%
Consumer Cyclical	23.8%	15.0%
Technology	23.2%	13.0%
Basic Materials	7.5%	13.6%
Financial Services	6.6%	13.1%
Healthcare	3.5%	3.7%
Real Estate	2.8%	2.7%
Consumer Defensive	1.5%	6.3%
Communication Services	1.5%	1.4%
Energy	-	0.6%
Utilities	-	1.5%

Return for Risk

RAYJ vs. DFJ — Risk / Return Rank

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

RAYJ

RAYJ Risk / Return Rank: 58
RAYJ Sharpe Ratio Rank: 57
RAYJ Sortino Ratio Rank: 57
RAYJ Omega Ratio Rank: 52
RAYJ Calmar Ratio Rank: 66
RAYJ Martin Ratio Rank: 58

DFJ

DFJ Risk / Return Rank: 55
DFJ Sharpe Ratio Rank: 61
DFJ Sortino Ratio Rank: 60
DFJ Omega Ratio Rank: 57
DFJ Calmar Ratio Rank: 52
DFJ Martin Ratio Rank: 44

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.

RAYJ vs. DFJ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Rayliant SMDAM Japan Equity ETF (RAYJ) 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.

	RAYJ	DFJ	Difference
Sharpe ratio: Return per unit of total volatility	1.86	1.96	-0.10
Sortino ratio: Return per unit of downside risk	2.64	2.72	-0.08
Omega ratio: Gain probability vs. loss probability	1.32	1.34	-0.02
Calmar ratio: Return relative to maximum drawdown	3.19	2.51	+0.67
Martin ratio: Return relative to average drawdown	10.06	7.03	+3.03

RAYJ vs. DFJ - Sharpe Ratio Comparison

The current RAYJ Sharpe Ratio is 1.86, which is comparable to the DFJ Sharpe Ratio of 1.96. The chart below compares the historical Sharpe Ratios of RAYJ 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

RAYJ vs. DFJ - Drawdown Comparison

The maximum RAYJ drawdown since its inception was -15.96%, smaller than the maximum DFJ drawdown of -46.00%. Use the drawdown chart below to compare losses from any high point for RAYJ and DFJ.

Drawdown Indicators

	RAYJ	DFJ	Difference
Max Drawdown Largest peak-to-trough decline	-15.96%	-46.00%	+30.04%
Max Drawdown (1Y) Largest decline over 1 year	-14.00%	-13.03%	-0.97%
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	0.00%	-3.87%	+3.87%
Average Drawdown Average peak-to-trough decline	-3.52%	-11.14%	+7.62%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.43%	4.65%	-0.22%

Volatility

RAYJ vs. DFJ - Volatility Comparison

Rayliant SMDAM Japan Equity ETF (RAYJ) has a higher volatility of 7.35% compared to WisdomTree Japan SmallCap Dividend Fund (DFJ) at 4.98%. This indicates that RAYJ'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

	RAYJ	DFJ	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.35%	4.98%	+2.37%
Volatility (6M) Calculated over the trailing 6-month period	18.15%	13.75%	+4.40%
Volatility (1Y) Calculated over the trailing 1-year period	24.08%	16.74%	+7.34%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.95%	15.94%	+7.01%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.95%	16.96%	+5.99%

RAYJ vs. DFJ - Expense Ratio Comparison

RAYJ has a 0.72% expense ratio, which is higher than DFJ's 0.58% expense ratio.

Dividends

RAYJ vs. DFJ - Dividend Comparison

RAYJ's dividend yield for the trailing twelve months is around 4.26%, more than DFJ's 2.36% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DFJ WisdomTree Japan SmallCap Dividend Fund	2.36%	2.68%	2.46%	2.43%	2.62%	2.07%	2.59%	2.24%	1.89%	1.60%	1.76%	1.23%
RAYJ Rayliant SMDAM Japan Equity ETF	4.26%	1.72%	0.78%	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 RAYJ and DFJ in my portfolio?

RAYJ and DFJ have a correlation of 0.59, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, RAYJ or DFJ?

RAYJ has higher volatility (7.35%) compared to DFJ (4.98%). In terms of maximum drawdown, RAYJ dropped -15.96% vs DFJ's -46.00%.

Which ETF is better, RAYJ or DFJ?

On 1-year performance, RAYJ leads with 44.44% vs 32.61% for DFJ. On fees, DFJ is cheaper at 0.58% per year. On volatility, DFJ has been the lower-risk option at 4.98%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, RAYJ or DFJ?

Over the 1-year period, RAYJ has performed better with a 44.44% return vs 32.61%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, RAYJ or DFJ?

DFJ is cheaper with a 0.58% expense ratio, compared with 0.72% for RAYJ.

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

RAYJ has the higher dividend yield at 4.26%, compared with 2.36% for DFJ.

What is the main difference between RAYJ and DFJ?

They also come from different issuers: Rayliant and WisdomTree. Their fees differ too: 0.72% for RAYJ and 0.58% for DFJ.

Which has better risk-adjusted returns?

DFJ currently has the higher Sharpe Ratio (1.96 vs 1.86), 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.