HEWJ vs SPY
iShares Currency Hedged MSCI Japan ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. HEWJ delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | HEWJ | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.50% | 0.09% | |
| AUM | $769M | $821.1B | |
| Dividend Yield | 4.14% | 1.01% | |
| Holdings | 178 | 505 | |
| YTD Return | +21.57% | +12.68% | |
| 1Y Return | +39.44% | +21.82% | |
| 3Y Return (annualized) | +28.97% | +21.98% | |
| 5Y Return (annualized) | +22.33% | +12.89% | |
| Volatility (annualized) | 14.9% | 15.3% | |
| Max Drawdown | -34.1% | -56.5% | |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Jan 31, 2014 | Jan 22, 1993 |
HEWJ vs SPY Performance
iShares Currency Hedged MSCI Japan ETF (HEWJ) is a ETF from iShares by BlackRock (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year HEWJ returned +39.44% while SPY returned +21.82%. Year to date, HEWJ is up 21.57% versus a gain of 12.68% for SPY.
Over three years, HEWJ compounded at +28.97% per year against +21.98% for SPY; over five years the annualized figures are +22.33% and +12.89% respectively. Across the full 13-year window we track, HEWJ has the edge at +12.86% annualized vs +8.81%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 14.9% for HEWJ. 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 -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 0.64. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
HEWJ charges 0.50% per year while SPY charges 0.09%. On a $10,000 position that is $50 vs $9 annually, a gap of $41 per year that compounds over a long holding period. On income, HEWJ currently yields 4.14% against 1.01% for SPY.
Holdings Overlap
HEWJ and SPY share 0 holdings out of 673 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 SPY?
HEWJ has an expense ratio of 0.50% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $41 per year of difference.
Which performed better, HEWJ or SPY?
Over the past year HEWJ returned +39.44% vs +21.82% for SPY, so HEWJ leads on 1-year performance. Over the longest common window we track (13 years), HEWJ annualized +12.86% vs +8.81% for SPY. Past performance does not guarantee future results.
Which is riskier, HEWJ or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 14.9% for HEWJ. Worst drawdown: HEWJ -34.1% vs SPY -56.5%.
Should I hold both HEWJ and SPY?
HEWJ and SPY have a monthly-return correlation of 0.64, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HEWJ and SPY?
HEWJ and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 673 unique securities.
Which pays a higher dividend, HEWJ or SPY?
HEWJ yields 4.14% while SPY yields 1.01%, so HEWJ currently pays the higher dividend yield.
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