HEWJ vs VXUS
iShares Currency Hedged MSCI Japan ETF vs Vanguard Total International Stock ETF
Quick Verdict
VXUS has a lower expense ratio. HEWJ delivered stronger 1-year returns. VXUS offers more diversification with 8,747 holdings.
Side-by-Side Comparison
| Metric | HEWJ | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.50% | 0.05% | |
| AUM | $769M | $158.1B | |
| Dividend Yield | 4.14% | 2.59% | |
| Holdings | 178 | 8,747 | |
| YTD Return | +22.37% | +13.56% | |
| 1Y Return | +38.01% | +24.30% | |
| 3Y Return (annualized) | +29.39% | +20.24% | |
| 5Y Return (annualized) | +22.56% | +9.37% | |
| Volatility (annualized) | 14.9% | 15.1% | |
| Max Drawdown | -34.1% | -39.9% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jan 31, 2014 | Jan 26, 2011 |
HEWJ vs VXUS Performance
iShares Currency Hedged MSCI Japan ETF (HEWJ) is a ETF from iShares by BlackRock (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year HEWJ returned +38.01% while VXUS returned +24.30%. Year to date, HEWJ is up 22.37% versus a gain of 13.56% for VXUS.
Over three years, HEWJ compounded at +29.39% per year against +20.24% for VXUS; over five years the annualized figures are +22.56% and +9.37% respectively. Across the full 13-year window we track, HEWJ has the edge at +12.93% annualized vs +4.79%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VXUS has been the more volatile fund, with annualized monthly volatility of 15.1% 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 -39.9% for VXUS. 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
HEWJ charges 0.50% per year while VXUS charges 0.05%. On a $10,000 position that is $50 vs $5 annually, a gap of $45 per year that compounds over a long holding period. On income, HEWJ currently yields 4.14% against 2.59% for VXUS.
Holdings Overlap
HEWJ and VXUS share 150 holdings out of 7888 unique holdings combined, representing a 10.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, HEWJ or VXUS?
HEWJ has an expense ratio of 0.50% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $45 per year of difference.
Which performed better, HEWJ or VXUS?
Over the past year HEWJ returned +38.01% vs +24.30% for VXUS, so HEWJ leads on 1-year performance. Over the longest common window we track (13 years), HEWJ annualized +12.93% vs +4.79% for VXUS. Past performance does not guarantee future results.
Which is riskier, HEWJ or VXUS?
VXUS has been the more volatile fund at 15.1% annualized versus 14.9% for HEWJ. Worst drawdown: HEWJ -34.1% vs VXUS -39.9%.
Should I hold both HEWJ and VXUS?
HEWJ and VXUS 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 HEWJ and VXUS?
HEWJ and VXUS share 150 common holdings with a 10.0% weight overlap. Combined, they hold 7888 unique securities.
Which pays a higher dividend, HEWJ or VXUS?
HEWJ yields 4.14% while VXUS yields 2.59%, so HEWJ currently pays the higher dividend yield.
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