---
title: "Own Japan’s rally without the yen risk: This hedged fund beat EWJ by 6 points"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/292540436.md"
description: "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."
datetime: "2026-07-13T23:31:47.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/292540436.md)
  - [en](https://longbridge.com/en/news/292540436.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/292540436.md)
---

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

Quick ReadDXJ's yen hedge returned 21% YTD versus EWJ's 15%, with the gap stretching to 228% versus 52% over five years as the yen weakened.DXJ's 4% annual hedging carry cost only pays when yen weakness exceeds that toll, making it a directional bet on continued yen softness.Are you ahead, or behind on retirement? SmartAsset's free tool can match y...

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