HEWJ vs VYM
iShares Currency Hedged MSCI Japan ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. HEWJ delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | HEWJ | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.50% | 0.04% | |
| AUM | $769M | $81.6B | |
| Dividend Yield | 4.14% | 2.24% | |
| Holdings | 178 | 616 | |
| YTD Return | +22.37% | +15.75% | |
| 1Y Return | +38.01% | +23.85% | |
| 3Y Return (annualized) | +29.39% | +19.14% | |
| 5Y Return (annualized) | +22.56% | +12.45% | |
| Volatility (annualized) | 14.9% | 14.6% | |
| Max Drawdown | -34.1% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jan 31, 2014 | Nov 10, 2006 |
HEWJ vs VYM Performance
iShares Currency Hedged MSCI Japan ETF (HEWJ) is a ETF from iShares by BlackRock (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year HEWJ returned +38.01% while VYM returned +23.85%. Year to date, HEWJ is up 22.37% versus a gain of 15.75% for VYM.
Over three years, HEWJ compounded at +29.39% per year against +19.14% for VYM; over five years the annualized figures are +22.56% and +12.45% respectively. Across the full 13-year window we track, HEWJ has the edge at +12.93% annualized vs +7.06%. 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 14.6% for VYM. 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 -58.8% for VYM. 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 0.60. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
HEWJ charges 0.50% per year while VYM charges 0.04%. On a $10,000 position that is $50 vs $4 annually, a gap of $46 per year that compounds over a long holding period. On income, HEWJ currently yields 4.14% against 2.24% for VYM.
Holdings Overlap
HEWJ and VYM share 0 holdings out of 772 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 VYM?
HEWJ has an expense ratio of 0.50% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $46 per year of difference.
Which performed better, HEWJ or VYM?
Over the past year HEWJ returned +38.01% vs +23.85% for VYM, so HEWJ leads on 1-year performance. Over the longest common window we track (13 years), HEWJ annualized +12.93% vs +7.06% for VYM. Past performance does not guarantee future results.
Which is riskier, HEWJ or VYM?
HEWJ has been the more volatile fund at 14.9% annualized versus 14.6% for VYM. Worst drawdown: HEWJ -34.1% vs VYM -58.8%.
Should I hold both HEWJ and VYM?
HEWJ and VYM have a monthly-return correlation of 0.60, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HEWJ and VYM?
HEWJ and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 772 unique securities.
Which pays a higher dividend, HEWJ or VYM?
HEWJ yields 4.14% while VYM yields 2.24%, so HEWJ currently pays the higher dividend yield.
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