HEDJ vs SPY

HEDJ vs SPY

Which is better, HEDJ or SPY?

Large Cap Value against Large Cap Blend.

SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. SPY is less concentrated, with 38.0% of the fund in its ten largest positions against 42.2%.

Lower Fees: SPYHigher Returns: SPYLess Concentrated: SPY

MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.

Side-by-Side Comparison

MetricHEDJSPY
Expense Ratio0.58%0.09%Best
AUM$1.8B$804.7B
Dividend Yield1.77%0.98%
Holdings132505
YTD Return+5.99%+11.52%Best
1Y Return+14.59%+17.48%Best
3Y Return (annualized)+14.27%+20.62%Best
5Y Return (annualized)+10.16%+12.73%Best
Volatility (annualized)15.4%14.4%Best
Max Drawdown-38.2%-34.1%Best
$10,000 over 5 years$16,223$18,205Best
Top 10 Weight42.2%38.0%Best
Fund FamilyWisdomTree InvestmentsState Street Investment Management
CategoryEquityEquity
StyleLarge Cap ValueLarge Cap Blend
InceptionDec 31, 2009Jan 22, 1993

Volatility and max drawdown are measured over the window both funds cover: Dec 31, 2009 to Sep 10, 2026 (16.7 years).

HEDJ vs SPY growth

Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 16.7 years both funds cover.

HEDJ vs SPY Performance

WisdomTree Europe Hedged Equity Fund (HEDJ) is an ETF from WisdomTree Investments and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year HEDJ returned +14.59% while SPY returned +17.48%. Year to date, HEDJ is up 5.99% versus a gain of 11.52% for SPY.

Over three years, HEDJ compounded at +14.27% per year against +20.62% for SPY; over five years the annualized figures are +10.16% and +12.73% respectively. Across the full 17-year window we track, SPY has the edge at +12.67% annualized vs +6.27%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

HEDJ has been the more volatile fund, with annualized monthly volatility of 15.4% compared with 14.4% 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 -38.2% for HEDJ and -34.1% for SPY. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.76. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

HEDJ charges 0.58% per year while SPY charges 0.09%. On a $10,000 position that is $58 vs $9 annually, a gap of $49 per year that compounds over a long holding period. On income, HEDJ currently yields 1.77% against 0.98% for SPY.

Holdings Overlap

HEDJ already in SPY0.7%
SPY already in HEDJ0.1%

0.7% of HEDJ's money is in holdings SPY also owns. 0.1% of SPY's money is in holdings HEDJ also owns.

We cannot see either book well enough to say how much of this pair is duplicated.

1 positions in common, counted across the 128 positions we hold weights for in HEDJ and 504 in SPY, against full books of 132 and 505.

What only one of them owns

Our book lists 494 positions for SPY that do not appear in our book for HEDJ (99.5% of the fund), and 4 for HEDJ that do not appear in SPY (11.1%).

Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.

Top Shared Holdings

StockWeight in HEDJWeight in SPYDifference
UMG:ASUniversal Music Group NV0.67%0.06%0.61%

You are not choosing between two funds in isolation.

Whichever of HEDJ and SPY you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

HEDJSPY

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, HEDJ or SPY?

HEDJ has an expense ratio of 0.58% while SPY charges 0.09%. SPY is the cheaper option, by $49 a year on a $10,000 investment.

Which performed better, HEDJ or SPY?

Over the past year HEDJ returned +14.59% vs +17.48% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (17 years), HEDJ annualized +6.27% vs +12.67% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, HEDJ or SPY?

HEDJ has been the more volatile fund at 15.4% annualized versus 14.4% for SPY. Worst drawdown: HEDJ -38.2% vs SPY -34.1%.

Should I hold both HEDJ and SPY?

HEDJ and SPY have a monthly-return correlation of 0.76, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

Which pays a higher dividend, HEDJ or SPY?

HEDJ yields 1.77% while SPY yields 0.98%, so HEDJ currently pays the higher dividend yield.

Is SPY better than HEDJ?

SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. SPY is less concentrated, with 38.0% of the fund in its ten largest positions against 42.2%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.