RFEU vs. HEDJ

Last updated Jun 4, 2026

RFEU (First Trust RiverFront Dynamic Europe ETF) and HEDJ (WisdomTree Europe Hedged Equity Fund) are both Europe Equities funds. RFEU is actively managed, while HEDJ is passively managed. Over the past 10 years, RFEU returned 7.29%/yr vs 10.67%/yr for HEDJ. A 0.71 correlation means they provide meaningful diversification when combined. RFEU charges 0.83%/yr vs 0.58%/yr for HEDJ.

Performance

RFEU vs. HEDJ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust RiverFront Dynamic Europe ETF (RFEU) and WisdomTree Europe Hedged Equity Fund (HEDJ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, RFEU achieves a 1.50% return, which is significantly lower than HEDJ's 6.37% return. Over the past 10 years, RFEU has underperformed HEDJ with an annualized return of 7.29%, while HEDJ has yielded a comparatively higher 10.67% annualized return.

RFEU

• 1D: 0.00%
• 1M: 0.00%
• YTD: 1.50%
• 6M: 4.04%
• 1Y: 13.97%
• 3Y*: 12.44%
• 5Y*: 3.74%
• 10Y*: 7.29%

HEDJ

• 1D: -0.88%
• 1M: 5.79%
• YTD: 6.37%
• 6M: 7.94%
• 1Y: 15.93%
• 3Y*: 14.41%
• 5Y*: 10.93%
• 10Y*: 10.67%

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

RFEU vs. HEDJ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
RFEU First Trust RiverFront Dynamic Europe ETF	1.50%	30.78%	-1.78%	16.19%	-24.17%	22.83%	6.25%	23.21%	-17.57%	26.58%
HEDJ WisdomTree Europe Hedged Equity Fund	6.37%	23.55%	5.28%	26.89%	-10.09%	23.54%	-3.35%	27.50%	-9.27%	13.51%

Correlation

The correlation between RFEU and HEDJ is 0.48, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.48
Correlation (3Y) Calculated over the trailing 3-year period	0.64
Correlation (5Y) Calculated over the trailing 5-year period	0.68
Correlation (10Y) Calculated over the trailing 10-year period	0.71
Correlation (All Time) Calculated using the full available price history since Apr 15, 2016	0.71

Over the past year, the correlation between RFEU and HEDJ has dropped to 0.48 - well below their long-term average of 0.71, suggesting their price drivers have been diverging.

RFEU vs. HEDJ - Sectors Allocation Comparison

Sectors	RFEU	HEDJ
Financial Services	18.9%	15.0%
Industrials	15.4%	22.9%
Healthcare	13.3%	8.4%
Technology	12.5%	11.0%
Consumer Cyclical	10.6%	13.4%
Consumer Defensive	9.3%	12.7%
Energy	8.7%	4.0%
Utilities	6.4%	-
Communication Services	3.8%	5.5%
Basic Materials	1.2%	7.0%
Real Estate	-	-

Return for Risk

RFEU vs. HEDJ — Risk / Return Rank

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

RFEU

RFEU Risk / Return Rank: 59
RFEU Sharpe Ratio Rank: 52
RFEU Sortino Ratio Rank: 54
RFEU Omega Ratio Rank: 65
RFEU Calmar Ratio Rank: 61
RFEU Martin Ratio Rank: 61

HEDJ

HEDJ Risk / Return Rank: 29
HEDJ Sharpe Ratio Rank: 28
HEDJ Sortino Ratio Rank: 29
HEDJ Omega Ratio Rank: 28
HEDJ Calmar Ratio Rank: 28
HEDJ Martin Ratio Rank: 35

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.

RFEU vs. HEDJ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust RiverFront Dynamic Europe ETF (RFEU) and WisdomTree Europe Hedged Equity Fund (HEDJ). 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.

	RFEU	HEDJ	Difference
Sharpe ratio Return per unit of total volatility	1.77	1.04	+0.74
Sortino ratio Return per unit of downside risk	2.57	1.56	+1.01
Omega ratio Gain probability vs. loss probability	1.39	1.19	+0.20
Calmar ratio Return relative to maximum drawdown	2.99	1.34	+1.65
Martin ratio Return relative to average drawdown	10.93	5.36	+5.57
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

RFEU vs. HEDJ - Sharpe Ratio Comparison

The current RFEU Sharpe Ratio is 1.77, which is higher than the HEDJ Sharpe Ratio of 1.04. The chart below compares the historical Sharpe Ratios of RFEU and HEDJ, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	RFEU	HEDJ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.77	1.04	+0.74
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.23	0.66	-0.43
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.41	0.58	-0.17
Sharpe Ratio (All Time) Calculated using the full available price history	0.41	0.48	-0.06

Drawdowns

RFEU vs. HEDJ - Drawdown Comparison

The maximum RFEU drawdown since its inception was -39.74%, roughly equal to the maximum HEDJ drawdown of -38.18%. Use the drawdown chart below to compare losses from any high point for RFEU and HEDJ.

Drawdown Indicators

	RFEU	HEDJ	Difference
Max Drawdown Largest peak-to-trough decline	-39.74%	-38.18%	-1.56%
Max Drawdown (1Y) Largest decline over 1 year	-5.15%	-11.90%	+6.75%
Max Drawdown (3Y) Largest decline over 3 years	-13.48%	-15.93%	+2.45%
Max Drawdown (5Y) Largest decline over 5 years	-35.92%	-22.17%	-13.75%
Max Drawdown (10Y) Largest decline over 10 years	-39.74%	-38.18%	-1.56%
Current Drawdown Current decline from peak	-0.11%	-1.21%	+1.10%
Average Drawdown Average peak-to-trough decline	-9.62%	-5.92%	-3.70%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.35%	2.98%	-1.63%

Volatility

RFEU vs. HEDJ - Volatility Comparison

The current volatility for First Trust RiverFront Dynamic Europe ETF (RFEU) is 0.00%, while WisdomTree Europe Hedged Equity Fund (HEDJ) has a volatility of 5.50%. This indicates that RFEU experiences smaller price fluctuations and is considered to be less risky than HEDJ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	RFEU	HEDJ	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.00%	5.50%	-5.50%
Volatility (6M) Calculated over the trailing 6-month period	4.43%	12.53%	-8.10%
Volatility (1Y) Calculated over the trailing 1-year period	8.73%	15.43%	-6.70%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.77%	16.76%	+0.01%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.86%	18.41%	-0.55%

RFEU vs. HEDJ - Expense Ratio Comparison

RFEU has a 0.83% expense ratio, which is higher than HEDJ's 0.58% expense ratio.

Dividends

RFEU vs. HEDJ - Dividend Comparison

RFEU's dividend yield for the trailing twelve months is around 2.83%, more than HEDJ's 1.53% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
HEDJ WisdomTree Europe Hedged Equity Fund	1.53%	1.63%	3.28%	3.31%	2.83%	2.08%	2.65%	1.82%	2.73%	2.27%	2.74%	9.43%
RFEU First Trust RiverFront Dynamic Europe ETF	2.83%	2.87%	5.45%	3.37%	4.98%	1.82%	2.32%	3.08%	2.84%	1.35%	3.16%	0.00%

Frequently Asked Questions

Can I hold both RFEU and HEDJ in my portfolio?

RFEU and HEDJ have a correlation of 0.48, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, RFEU or HEDJ?

HEDJ has higher volatility (5.50%) compared to RFEU (0.00%). In terms of maximum drawdown, RFEU dropped -39.74% vs HEDJ's -38.18%.

Which ETF is better, RFEU or HEDJ?

On 10-year performance, HEDJ leads with 10.67% vs 7.29% for RFEU. On fees, HEDJ is cheaper at 0.58% per year. On volatility, RFEU has been the lower-risk option at 0.00%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, RFEU or HEDJ?

Over the 10-year period, HEDJ has performed better with a 10.67% return vs 7.29%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, RFEU or HEDJ?

HEDJ is cheaper with a 0.58% expense ratio, compared with 0.83% for RFEU.

Which ETF pays a higher dividend yield, RFEU or HEDJ?

RFEU has the higher dividend yield at 2.83%, compared with 1.53% for HEDJ.

What is the main difference between RFEU and HEDJ?

They also come from different issuers: First Trust and WisdomTree. Their fees differ too: 0.83% for RFEU and 0.58% for HEDJ.

Which has better risk-adjusted returns?

RFEU currently has the higher Sharpe Ratio (1.77 vs 1.04), 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.