Own Japan’s rally without the yen risk: This hedged fund beat EWJ by 6 points

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The WisdomTree Japan Hedged Equity Fund (DXJ) outperformed the iShares MSCI Japan ETF (EWJ) by approximately six percentage points year-to-date in 2026. While EWJ tracks Japanese equities, its returns are negatively impacted by yen depreciation against the dollar. DXJ mitigates this currency risk through hedging, allowing investors to capture equity gains without yen translation losses. However, DXJ carries higher hedging costs and concentrates on exporters, posing risks if the yen strengthens.