HEWJ vs SCHD
iShares Currency Hedged MSCI Japan ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. HEWJ delivered stronger 1-year returns. HEWJ offers more diversification with 178 holdings.
Side-by-Side Comparison
| Metric | HEWJ | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.50% | 0.06% | |
| AUM | $769M | $108.7B | |
| Dividend Yield | 4.14% | 3.13% | |
| Holdings | 178 | 104 | |
| YTD Return | +22.37% | +26.50% | |
| 1Y Return | +38.01% | +31.25% | |
| 3Y Return (annualized) | +29.39% | +16.34% | |
| 5Y Return (annualized) | +22.56% | +10.10% | |
| Volatility (annualized) | 14.9% | 13.6% | |
| Max Drawdown | -34.1% | -33.4% | |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Jan 31, 2014 | Oct 20, 2011 |
HEWJ vs SCHD Performance
iShares Currency Hedged MSCI Japan ETF (HEWJ) is a ETF from iShares by BlackRock (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year HEWJ returned +38.01% while SCHD returned +31.25%. Year to date, HEWJ is up 22.37% versus a gain of 26.50% for SCHD.
Over three years, HEWJ compounded at +29.39% per year against +16.34% for SCHD; over five years the annualized figures are +22.56% and +10.10% respectively. Across the full 13-year window we track, HEWJ has the edge at +12.93% annualized vs +11.50%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
HEWJ has been the more volatile fund, with annualized monthly volatility of 14.9% compared with 13.6% for SCHD. 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 -34.1% for HEWJ and -33.4% for SCHD. 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 0.56. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
HEWJ charges 0.50% per year while SCHD charges 0.06%. On a $10,000 position that is $50 vs $6 annually, a gap of $44 per year that compounds over a long holding period. On income, HEWJ currently yields 4.14% against 3.13% for SCHD.
Holdings Overlap
HEWJ and SCHD share 0 holdings out of 269 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, HEWJ or SCHD?
HEWJ has an expense ratio of 0.50% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $44 per year of difference.
Which performed better, HEWJ or SCHD?
Over the past year HEWJ returned +38.01% vs +31.25% for SCHD, so HEWJ leads on 1-year performance. Over the longest common window we track (13 years), HEWJ annualized +12.93% vs +11.50% for SCHD. Past performance does not guarantee future results.
Which is riskier, HEWJ or SCHD?
HEWJ has been the more volatile fund at 14.9% annualized versus 13.6% for SCHD. Worst drawdown: HEWJ -34.1% vs SCHD -33.4%.
Should I hold both HEWJ and SCHD?
HEWJ and SCHD have a monthly-return correlation of 0.56, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HEWJ and SCHD?
HEWJ and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 269 unique securities.
Which pays a higher dividend, HEWJ or SCHD?
HEWJ yields 4.14% while SCHD yields 3.13%, so HEWJ currently pays the higher dividend yield.
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