VUG vs. DXJ

Last updated Jun 13, 2026

VUG (Vanguard Growth ETF) and DXJ (WisdomTree Japan Hedged Equity Fund) are both exchange-traded funds - VUG is a Large Cap Growth Equities fund tracking the CRSP US Large Cap Growth Index, while DXJ is a Japan Equities fund tracking the WisdomTree Japan Hedged Equity Index. Both are passively managed. Over the past 10 years, VUG returned 17.90%/yr vs 18.72%/yr for DXJ. A 0.59 correlation means they provide meaningful diversification when combined. VUG charges 0.03%/yr vs 0.48%/yr for DXJ.

Performance

VUG vs. DXJ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Growth ETF (VUG) 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, VUG achieves a 4.99% return, which is significantly lower than DXJ's 18.74% return. Both investments have delivered pretty close results over the past 10 years, with VUG having a 17.90% annualized return and DXJ not far ahead at 18.72%.

VUG

• 1D: 0.18%
• 1M: -2.56%
• YTD: 4.99%
• 6M: 5.66%
• 1Y: 21.15%
• 3Y*: 23.38%
• 5Y*: 13.78%
• 10Y*: 17.90%

DXJ

• 1D: 0.74%
• 1M: -0.20%
• YTD: 18.74%
• 6M: 19.84%
• 1Y: 53.35%
• 3Y*: 30.91%
• 5Y*: 26.01%
• 10Y*: 18.72%

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

VUG vs. DXJ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VUG Vanguard Growth ETF	4.99%	19.40%	32.69%	46.83%	-33.16%	27.35%	40.25%	37.03%	-3.32%	27.72%
DXJ WisdomTree Japan Hedged Equity Fund	18.74%	32.78%	29.83%	42.04%	5.96%	17.99%	3.94%	18.94%	-19.78%	22.81%

Correlation

The correlation between VUG and DXJ is 0.44, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.44
Correlation (3Y) Calculated over the trailing 3-year period	0.46
Correlation (5Y) Calculated over the trailing 5-year period	0.52
Correlation (10Y) Calculated over the trailing 10-year period	0.55
Correlation (All Time) Calculated using the full available price history since Jun 16, 2006	0.59

The correlation between VUG and DXJ shifts across timeframes, from 0.44 (1 year) to 0.59 (all time), reflecting how their relationship changes across market environments.

VUG vs. DXJ - Sectors Allocation Comparison

Sectors	VUG	DXJ
Technology	53.5%	12.9%
Communication Services	17.3%	2.7%
Consumer Cyclical	12.2%	15.6%
Healthcare	4.6%	6.8%
Financial Services	4.3%	18.3%
Industrials	3.6%	27.4%
Consumer Defensive	1.5%	4.7%
Real Estate	1.0%	-
Utilities	0.9%	0.1%
Basic Materials	0.6%	8.5%
Energy	0.4%	1.7%

Return for Risk

VUG vs. DXJ — Risk / Return Rank

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

VUG

VUG Risk / Return Rank: 36
VUG Sharpe Ratio Rank: 41
VUG Sortino Ratio Rank: 38
VUG Omega Ratio Rank: 40
VUG Calmar Ratio Rank: 30
VUG Martin Ratio Rank: 33

DXJ

DXJ Risk / Return Rank: 92
DXJ Sharpe Ratio Rank: 93
DXJ Sortino Ratio Rank: 93
DXJ Omega Ratio Rank: 92
DXJ Calmar Ratio Rank: 90
DXJ Martin Ratio Rank: 91

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.

VUG vs. DXJ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Growth ETF (VUG) 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.

	VUG	DXJ	Difference
Sharpe ratio: Return per unit of total volatility	1.29	3.02	-1.73
Sortino ratio: Return per unit of downside risk	1.78	4.04	-2.26
Omega ratio: Gain probability vs. loss probability	1.23	1.54	-0.31
Calmar ratio: Return relative to maximum drawdown	1.29	4.88	-3.60
Martin ratio: Return relative to average drawdown	4.43	18.93	-14.50

VUG vs. DXJ - Sharpe Ratio Comparison

The current VUG Sharpe Ratio is 1.29, which is lower than the DXJ Sharpe Ratio of 3.02. The chart below compares the historical Sharpe Ratios of VUG 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

VUG vs. DXJ - Drawdown Comparison

The maximum VUG drawdown since its inception was -50.68%, roughly equal to the maximum DXJ drawdown of -49.63%. Use the drawdown chart below to compare losses from any high point for VUG and DXJ.

Drawdown Indicators

	VUG	DXJ	Difference
Max Drawdown Largest peak-to-trough decline	-50.68%	-49.63%	-1.05%
Max Drawdown (1Y) Largest decline over 1 year	-16.53%	-10.98%	-5.55%
Max Drawdown (3Y) Largest decline over 3 years	-22.85%	-22.19%	-0.66%
Max Drawdown (5Y) Largest decline over 5 years	-35.61%	-22.19%	-13.42%
Max Drawdown (10Y) Largest decline over 10 years	-35.61%	-39.14%	+3.53%
Current Drawdown Current decline from peak	-5.56%	-1.34%	-4.22%
Average Drawdown Average peak-to-trough decline	-7.09%	-14.32%	+7.23%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.79%	2.83%	+1.96%

Volatility

VUG vs. DXJ - Volatility Comparison

Vanguard Growth ETF (VUG) has a higher volatility of 5.73% compared to WisdomTree Japan Hedged Equity Fund (DXJ) at 4.64%. This indicates that VUG's price experiences larger fluctuations and is considered to be riskier than DXJ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VUG	DXJ	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.73%	4.64%	+1.09%
Volatility (6M) Calculated over the trailing 6-month period	13.00%	13.56%	-0.56%
Volatility (1Y) Calculated over the trailing 1-year period	16.46%	17.73%	-1.27%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.30%	19.02%	+3.28%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.48%	20.17%	+1.31%

VUG vs. DXJ - Expense Ratio Comparison

VUG has a 0.03% expense ratio, which is lower than DXJ's 0.48% expense ratio.

Dividends

VUG vs. DXJ - Dividend Comparison

VUG's dividend yield for the trailing twelve months is around 0.39%, less than DXJ's 1.09% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DXJ WisdomTree Japan Hedged Equity Fund	1.09%	1.29%	3.48%	3.44%	3.02%	2.64%	2.53%	2.47%	2.92%	2.30%	1.98%	5.95%
VUG Vanguard Growth ETF	0.39%	0.41%	0.47%	0.58%	0.70%	0.48%	0.66%	0.95%	1.32%	1.14%	1.39%	1.30%

Frequently Asked Questions

Can I hold both VUG and DXJ in my portfolio?

VUG and DXJ have a correlation of 0.44, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VUG or DXJ?

VUG has higher volatility (5.73%) compared to DXJ (4.64%). In terms of maximum drawdown, VUG dropped -50.68% vs DXJ's -49.63%.

Which ETF is better, VUG or DXJ?

On 10-year performance, DXJ leads with 18.72% vs 17.90% for VUG. On fees, VUG is cheaper at 0.03% per year. On volatility, DXJ has been the lower-risk option at 4.64%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VUG or DXJ?

Over the 10-year period, DXJ has performed better with a 18.72% return vs 17.90%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VUG or DXJ?

VUG is cheaper with a 0.03% expense ratio, compared with 0.48% for DXJ.

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

DXJ has the higher dividend yield at 1.09%, compared with 0.39% for VUG.

What is the main difference between VUG and DXJ?

VUG is categorized as Large Cap Growth Equities, while DXJ is Japan Equities. VUG tracks CRSP US Large Cap Growth Index, while DXJ tracks WisdomTree Japan Hedged Equity Index. They also come from different issuers: Vanguard and WisdomTree. Their fees differ too: 0.03% for VUG and 0.48% for DXJ.

Which has better risk-adjusted returns?

DXJ currently has the higher Sharpe Ratio (3.02 vs 1.29), 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.