WisdomTree Europe Hedged Equity Fund

WisdomTree Europe Hedged Equity Fund (HEDJ) tracks the WisdomTree Europe Hedged Equity Index. The index is a dividend-weighted basket of large eurozone companies, such as ASML, BBVA and Siemens, that earn at least half their revenue outside Europe. The fund uses currency contracts to remove swings in the euro against the dollar. Most Europe funds don't hedge this way. The cost is higher, though: its 0.58% expense ratio is more than double the 0.27% average of similar funds.

• Over the year to Oct 27, 2026, HEDJ returned +8.5%, 7th of 9 among similar funds.
• Its 5-year annualized return was +10.4% and its 10-year +10.1%.
• In the 2020 COVID crash it fell 37.7% and regained its old high 11.8 months after the low.
• Its worst full calendar year was 2022 (-10.1%); its best was 2019 (+27.5%).
• The deepest fall in its price history was 38.2% (Feb 12, 2020 to Mar 16, 2020), recovered by Mar 10, 2021.

As of Jun 30, 2026, the fund held 130 securities; the ten largest made up 41.1% of assets, and 2.46% sat in cash and money-market holdings.

• Over the three months to Jun 30, 2026, investors withdrew a net $24.6M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +5.38%, +4.21%, +2.01%.

HEDJ tracks the WisdomTree Europe Hedged Equity Index. WisdomTree built the index and also owns the fund's adviser. The index starts with dividend-paying companies in developed countries outside the US and Canada. It keeps only companies based in one of 10 euro-using countries, including Germany, France, Spain and the Netherlands. Each must trade in euros, be worth at least $1 billion and earn at least half its revenue outside Europe. Each must also have paid at least $5 million in dividends over the prior year and pass trading-volume tests.

Stocks are weighted by the total dollar amount of dividends they paid, so bigger payers get bigger weights. At each annual screening, no stock can exceed 5% and no sector or country 25%. Real estate is capped at 15%. Weights can drift between screenings. The fund uses representative sampling: it holds a sample of index stocks that behaves like the whole index rather than every stock. As of June 30, 2026, it held 130 stocks, led by ASML at 7.5%.

The hedge comes from currency contracts with banks such as HSBC, Morgan Stanley and Deutsche Bank. When the euro falls against the dollar, the contracts gain and offset the loss. When the euro rises, they lose, so holders give up that gain. The prospectus warns that these derivatives may not work exactly as intended.

• HEDJ charges 0.58% a year, versus an average of 0.27% for the similar funds below (8th of 9, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $59 in the first year and $726 over 10 years (assuming a 5% annual return).

It adds large eurozone companies without the euro's swings against the dollar, but its narrow regional focus and higher fee fit a supporting role better than a core one.

HEDJ can add large European exporters to a US-heavy portfolio without the extra ups and downs of the euro. It still falls hard in selloffs. It dropped 37.7% from February 19 to March 16, 2020, and took about 12 months to recover. In 2022 it fell 22.2% and recovered in about five months. The fund launched after the 2008 crisis, so it has no record for that episode. Its worst calendar year was 2022, a loss of about 10%. Anyone who must sell shares in a stretch like that would lock in losses.

Income is modest: the trailing yield was 1.87% as of October 27, 2026, paid twice a year. On the SEC's standard $10,000 example, the 0.58% fee costs $59 in the first year. Past results don't predict future returns, and a plan should look at the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.