DXJ vs SPY
WisdomTree Japan Hedged Equity Fund vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. DXJ delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | DXJ | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.48% | 0.09% | |
| AUM | $7.4B | $821.1B | |
| Dividend Yield | 0.96% | 1.01% | |
| Holdings | 430 | 505 | |
| YTD Return | +21.92% | +12.22% | |
| 1Y Return | +41.06% | +20.83% | |
| 3Y Return (annualized) | +31.70% | +21.70% | |
| 5Y Return (annualized) | +27.98% | +12.98% | |
| Volatility (annualized) | 17.1% | 15.3% | |
| Max Drawdown | -51.1% | -56.5% | |
| Fund Family | WisdomTree Investments | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Jun 16, 2006 | Jan 22, 1993 |
DXJ vs SPY Performance
WisdomTree Japan Hedged Equity Fund (DXJ) is a ETF from WisdomTree Investments and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year DXJ returned +41.06% while SPY returned +20.83%. Year to date, DXJ is up 21.92% versus a gain of 12.22% for SPY.
Over three years, DXJ compounded at +31.70% per year against +21.70% for SPY; over five years the annualized figures are +27.98% and +12.98% respectively. Across the full 20-year window we track, SPY has the edge at +8.79% annualized vs +7.20%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
DXJ has been the more volatile fund, with annualized monthly volatility of 17.1% compared with 15.3% for SPY. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -51.1% for DXJ and -56.5% for SPY. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.62. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
DXJ charges 0.48% per year while SPY charges 0.09%. On a $10,000 position that is $48 vs $9 annually, a gap of $39 per year that compounds over a long holding period. On income, DXJ currently yields 0.96% against 1.01% for SPY.
Holdings Overlap
DXJ and SPY share 0 holdings out of 918 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, DXJ or SPY?
DXJ has an expense ratio of 0.48% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $39 per year of difference.
Which performed better, DXJ or SPY?
Over the past year DXJ returned +41.06% vs +20.83% for SPY, so DXJ leads on 1-year performance. Over the longest common window we track (20 years), DXJ annualized +7.20% vs +8.79% for SPY. Past performance does not guarantee future results.
Which is riskier, DXJ or SPY?
DXJ has been the more volatile fund at 17.1% annualized versus 15.3% for SPY. Worst drawdown: DXJ -51.1% vs SPY -56.5%.
Should I hold both DXJ and SPY?
DXJ and SPY have a monthly-return correlation of 0.62, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DXJ and SPY?
DXJ and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 918 unique securities.
Which pays a higher dividend, DXJ or SPY?
DXJ yields 0.96% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.
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