EWJ vs HEWJ: Japan Stocks — Do You Want Yen Exposure or Not?
EWJ and HEWJ hold the same Japanese companies. The difference is whether you also get yen currency exposure. When the yen weakens, EWJ underperforms HEWJ — and vice versa.
EWJ (iShares MSCI Japan ETF) and HEWJ (iShares Currency Hedged MSCI Japan ETF) hold essentially the same Japanese equity portfolio — Toyota, Sony, Keyence, SoftBank, and similar major Japanese companies. The difference is currency treatment: EWJ gives you Japanese yen exposure alongside the equity returns, while HEWJ uses rolling one-month FX forwards to hedge out the yen, delivering only the local equity return in USD. When the yen weakens against the dollar (as it did dramatically in 2022-2023), HEWJ significantly outperforms EWJ because hedged investors don't lose money on the currency translation. When yen strengthens, EWJ wins. Both charge similar fees (~0.50%). The choice is essentially a yen view: neutral or bullish on yen → EWJ; bearish or wanting pure equity exposure → HEWJ.
Whether the lower-cost fund suits your situation depends on your existing holdings, account type, tax situation, and how you use each fund. This is a cost comparison, not a personalized recommendation.
📋 EWJ vs HEWJ — Key Facts Side by Side
| Metric | EWJ | HEWJ |
|---|---|---|
| Fund Name | iShares MSCI Japan ETF | iShares Currency Hedged MSCI Japan ETF |
| Issuer | iShares | iShares |
| Tracks Index | MSCI Japan | MSCI Japan (USD Hedged) |
| Expense Ratio | 0.50% | 0.48% ✓ |
| Cost per $10K/yr | $50.00 | $48.00 |
| AUM | $22.3B | $725.1M |
| Holdings | 240 | 240 |
| Inception | 1996 | 2014 |
| 1-Year Return | +30.58% | +46.67% |
| 3-Year Return | +18.31% | +29.11% |
| 5-Year Return | +9.03% | +22.04% |
| Dividend Yield | 3.81% | 3.71% |
| Holdings Overlap | See holdings overlap → | |
| Avg Bid-Ask Spread | 0.01% | 0.03% |
Expense ratio, AUM, and returns updated Jul 14, 2026 from ETF BFF database. Returns are annualised. Not investment advice.
📊 EWJ vs HEWJ — Annualised Returns
Annualised returns (trailing, price-based). Past performance does not guarantee future results.
🎯 Which Fund Fits Which Investor?
- want the specific exposure defined by the MSCI Japan
- want the lowest fees: saves ~$2/yr per $10K vs EWJ
💰 What the Fee Difference Actually Costs
Adjust the numbers for your situation. This models each fund's expense ratio compounding against your balance over time.
Assumes a constant annual return reinvested, with each fund's expense ratio deducted yearly. Illustrative only; actual returns vary. Past performance does not guarantee future results.
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❓ EWJ vs HEWJ — Frequently Asked Questions
New to ETF investing? See answers to the most common ETF questions →