HEWJ ETF: What Is It? A Complete Guide to Returns, Fees, Holdings, and Alternative ETFs
The iShares Currency Hedged MSCI Japan ETF is a passive fund that invests in Japanese large- and mid-cap stocks while hedging the yen exchange rate, offering Japan exposure with reduced currency impact. Fees, currency hedging, and dividends are the key points to check, and comparing it with unhedged Japan ETFs is the main selection criterion. The trading ticker is HEWJ.
SubscribeWhat Is the iShares Currency Hedged MSCI Japan ETF?
This is a passive country ETF that invests in Japanese large- and mid-cap stocks while hedging yen-dollar exchange rate fluctuations back to the dollar on a monthly basis. It maintains exposure to the Japanese stock market while reducing the impact of currency moves.
It suits country-diversification investors who want to invest in the Japanese stock market while reducing yen exchange rate risk.
It is a passive (index-tracking) ETF managed by iShares.
How Does the iShares Currency Hedged MSCI Japan ETF Invest?
| Item | Details |
|---|---|
| Tracked Index | MSCI Japan Index (currency hedged) |
| Management Style | Passive (currency hedged) |
| Rebalancing Frequency | Periodic (per index rules) |
| Dividend Frequency | Semiannual |
| Total Expense Ratio | 0.49% |
It tracks an index of Japanese large- and mid-cap stocks while hedging yen-dollar exchange rate fluctuations every month. By reducing currency exposure, it lets investors focus on the performance of Japanese equities themselves, and when the yen is weak it can have an edge over unhedged Japan ETFs.
- Japan exposure with the yen exchange rate hedged to the dollar
- A structure designed to focus on Japanese stock performance
iShares Currency Hedged MSCI Japan ETF Size and Costs (AUM and Expense Ratio)
Assets under management (AUM) stand at $624.9M, and the total expense ratio is 0.49% per year.
Unlike unhedged Japan ETFs, it reduces the impact of yen exchange rate moves, but it incurs hedging costs and can miss out on currency gains when the yen strengthens.
iShares Currency Hedged MSCI Japan ETF Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeThe Japanese stock market is influenced by the global economy and by ongoing corporate governance improvements. Because of the hedged structure, the performance is driven more by the movement of Japanese stocks themselves than by the yen exchange rate, and during periods of yen weakness it can work out better than unhedged Japan ETFs.
Interest in hedged Japan ETFs tends to grow when concerns about yen weakness rise, while in periods when a stronger yen is expected, money sometimes moves into unhedged Japan ETFs.
iShares Currency Hedged MSCI Japan ETF Pros and Cons
Its strength is Japan exposure with reduced yen exchange rate volatility, while its drawbacks are hedging costs and the loss of currency gains when the yen strengthens.
💪 Key Strengths
⚠️ Points to Watch
iShares Currency Hedged MSCI Japan ETF Alternative ETFs and Related Products
EWJ, BBJP, FLJP, and others shown in the table are Japan ETFs that do not hedge the yen exchange rate, so they bear yen fluctuations in full. For hedged exposure, you can also compare DXJ, which holds Japanese stocks with the yen hedged, and EWJV, which focuses on Japanese value stocks. They differ in hedging, style, and fees, so it is best to choose based on your currency outlook.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 EWJ | iShares MSCI Japan ETF | $92.84 | -0.1% | $23.4B | 0.49% | 3.67% | +11.5% |
 EWY | iShares MSCI South Korea ETF | $151.62 | -0.8% | $22.3B | 0.59% | 1.34% | +56.3% |
 BBJP | JPMorgan BetaBuilders Japan ETF | $75.08 | +0.0% | $18.7B | 0.19% | 4.71% | +9.1% |
 FLJP | Franklin FTSE Japan ETF | $39.61 | +0.1% | $4.3B | 0.09% | 4.26% | +11.1% |
 FLKR | Franklin FTSE South Korea ETF | $49.99 | -0.8% | $1.8B | 0.09% | 2.94% | +54.3% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
 ICPI | iShares 0-1 Year TIPS Bond ETF | 2.97% | $50.37 | -0.6% | $0.0M | - | 3.67% |
iShares Currency Hedged MSCI Japan ETF Investor Checkpoints
These are the points to review before investing in HEWJ. As a hedged Japan ETF, it is important to check hedging costs, the yen outlook, country concentration, and the expense level in advance.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 💵 Expense Ratio | Check the fees of the hedged ETF | Needs checking |
| 💱 Currency Hedging | Check the yen-dollar hedging structure and costs | Hedge applied |
| 🗾 Country Concentration | Check concentration in the single country of Japan | Concentrated |
| 📊 Yen Outlook | Check advantages and disadvantages depending on yen strength or weakness | Needs checking |
The hedging process incurs costs, and during periods of yen strength it can miss out on currency gains. Because it is concentrated in a single country, volatility can rise when the Japanese economy slows.
This is a passive ETF suited to country-diversification investors who want to invest in the Japanese stock market while reducing yen exchange rate risk. If you expect a stronger yen, an unhedged Japan ETF may be the better option, and if you expect a weaker yen, HEWJ can be an alternative.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
This article reflects information as of June 4, 2026.
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