At a glance
HEWJ charges 0.49% a year, below the 0.86% average of the 7 funds most like it (the cheapest of 8). It has $773.9M in assets, the 8th largest of that group; it paid 4.1% of its price in distributions over the past 12 months, semiannual. Over the past year it returned +25.8% with distributions reinvested (S&P 500: +11.5%), the best of those 8 funds; over three years it returned +28.5% a year. At its worst it fell 29.4% in the 2020 crash (S&P 500: 33.7%) and 14.7% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 8 months and 9 months after the lows.
The short version
iShares Currency Hedged MSCI Japan ETF (HEWJ) tracks the MSCI Japan 100% Hedged to USD Index of large and mid-sized Japanese companies. It is a fund of funds: it holds the iShares MSCI Japan ETF and adds currency contracts, reset monthly, that aim to cancel out swings in the yen against the dollar. It is designed to beat an unhedged Japan fund when the yen weakens and trail it when the yen strengthens.
Price history
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HEWJ +25.8% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| HEWJ official prospectus, to Dec 31, 2024 | — | +24.87% | — | +15.22% | +10.63% | — |
| MSCIACWI Ex USA Index index, same period | — | +5.53% | — | +4.10% | +4.80% | — |
| HEWJ price data to Oct 27, 2026 | +21.6% | +25.8% | +28.5% | +21.2% | +15.9% | +13.9% |
- Over the year to Oct 27, 2026, HEWJ returned +25.8%, 1st of 8 among similar funds.
- Its 5-year annualized return was +21.2% and its 10-year +15.9%.
- In the 2020 COVID crash it fell 29.4% and regained its old high 7.7 months after the low.
- Its worst full calendar year was 2018 (-14.7%); its best was 2023 (+36.2%).
- The deepest fall in its price history was 31.5% (Feb 6, 2020 to Mar 16, 2020), recovered by Nov 9, 2020.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +21.6% | — |
| 2025 | +30.2% | — |
| 2024 | +24.8% | +24.87% |
| 2023 | +36.2% | +36.20% |
| 2022 | -4.0% | -3.91% |
| 2021 | +12.9% | +12.79% |
| 2020 | +10.5% | +10.19% |
| 2019 | +20.8% | +21.10% |
| 2018 | -14.7% | -14.94% |
| 2017 | +21.5% | +21.51% |
| 2016 | -1.0% | -0.94% |
| 2015 | +8.9% | +9.05% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 22% over that stretch · deepest drop along the way 29.4%, back to its old high 7.7 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 4.8% over that stretch · deepest drop along the way 14.7%, back to its old high 8.5 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.3500 | |
| 2025 | $2.6900 | +186.2% |
| 2024 | $0.9400 | +32.4% |
| 2023 | $0.7100 | -94.3% |
| 2022 | $12.4700 | +1362.9% |
| 2021 | $0.8524 | +74.3% |
| 2020 | $0.4891 | -46.8% |
| 2019 | $0.9200 | +135.9% |
| 2018 | $0.3900 | -2.5% |
| 2017 | $0.4000 | -24.5% |
| 2016 | $0.5300 | -43.0% |
| 2015 | $0.9300 |
What's inside
As of Aug 31, 2026, the fund held 1 securities; the ten largest made up 99.98% of assets.
| Fund held | Weight | |
|---|---|---|
| ISHARES MSCI JAPAN ETF Other | 99.98% |
By country
United States 99.98%By asset type
Other 99.98%What changed recently
- Over the three months to Aug 31, 2026, investors added a net $10.9M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +3.16%, -2.86%, +4.43%.
How it works
MSCI Inc. sponsors the index. It decides which large- and mid-sized Japanese companies are included and how much each one counts. As of August 31, 2025, a large share of the index was in consumer goods and services, financials and industrials. BlackRock Fund Advisors (BFA) runs the fund as an index fund. It does not try to beat the index, and it does not move to cash when markets fall. It uses "representative sampling," which means it may hold a sample of securities that resembles the whole index instead of every stock.
In practice, the fund owns another fund. As of August 31, 2026, 99.98% of its assets were in the iShares MSCI Japan ETF. The rest was nine currency derivative positions and about 0.03% in cash. The hedge uses forward contracts, which are agreements to exchange currencies at a set rate on a future date. Each month the index locks in a one-month exchange rate on the full value of its yen-priced stocks, then resets. Some contracts settle in cash in US dollars rather than in actual yen.
The hedge is not perfect. Stock values change between the monthly resets, so the contracts may not fully offset moves in the yen. The hedge also does nothing to cushion falling share prices. Portfolio turnover was 15%.
What it really costs
- HEWJ charges 0.49% a year, versus an average of 0.86% for the similar funds below (1st of 8, cheapest first).
- Of that, 0.53% is the management fee; the rest covers other fund expenses.
- The fee includes a 0.53% waiver from the adviser, which may end.
- Using the prospectus's standard example, $10,000 invested would cost about $50 in the first year and $976 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| HEWJ | $50 | $157 | $274 | $976 |
Structure and tax notes
- Invests in other funds rather than directly in stocks or bonds, so its holdings are those funds.
In a retirement portfolio
It holds stocks from a single country and adds a currency hedge, so it fits better as a smaller add-on than as a portfolio's foundation.
HEWJ could add exposure to Japanese companies without the yen's ups and downs, but it is a single-country fund with real swings. It launched in 2014, so it has no record from the 2008 crisis. Its deepest drop came in the 2020 COVID crash: it fell 31.5% from February 6 to March 16, 2020, and was back at its peak by November 9, 2020, about 7.8 months later. In 2022 it fell 14.7% by March 8, regained its peak by November 21 and ended the year down 3.91%. Its worst calendar year was 2018, with a 14.94% loss. Someone taking money out in a year like that could lock in losses. The trailing yield was 4.1% as of October 27, 2026, paid twice a year. The expense ratio is 0.49%. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want large- and mid-sized Japanese stocks while hedging away most of the yen's moves against the US dollar.
- Those comfortable with a single-country fund that fell 31.5% in early 2020 and returned 10.63% a year over 10 years through 2024.
- Holders who value a 0.49% expense ratio and income paid twice a year, with a 4.1% trailing yield as of October 27, 2026.
Look elsewhere if
- Investors wanting broad international diversification, since this fund holds only Japanese stocks through one underlying iShares fund.
- Those who want to gain if the yen rises, since the hedge makes this fund trail an unhedged version when the yen strengthens.
- Retirees who need steady monthly income, since payouts come twice a year and the fund lost 14.94% in 2018.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| HEWJ this fund | 0.49% | $773.9M | +25.8% | +28.5% |
| BUFR FT Vest Laddered Buffer ETF | 0.95% | $10.49B | +11.6% | +16.8% |
| BUFD FT Vest Laddered Deep Buffer ETF | 0.95% | $2.04B | +9.5% | +13.9% |
| PJAN Innovator U.S. Equity Power Buffer ETF - Ja… | 0.79% | $1.44B | +10.5% | +14.8% |
| PDEC Innovator U.S. Equity Power Buffer ETF - De… | 0.79% | $984.1M | +11.6% | +14.9% |
| FDEC FT Vest US Equity Buffer ETF - December | 0.85% | $1.31B | +12.9% | +18.5% |
| FJAN FT Vest US Equity Buffer ETF - January | 0.85% | $1.47B | +12.3% | +17.4% |
| FFEB FT Vest U.S. Equity Buffer Fund - February | 0.85% | $1.42B | +12.9% | +18.6% |
Questions investors ask
Is HEWJ a good investment for retirement?
It may fit as a smaller part of a diversified retirement portfolio rather than as a core holding. HEWJ holds only Japanese stocks, and its value can swing widely. It dropped 31.5% in early 2020 before recovering by November 9, 2020, and it lost 14.94% in 2018. It pays income twice a year, with a 4.1% trailing yield as of October 27, 2026. Past results don't predict future returns.
What's the difference between HEWJ and the iShares MSCI Japan ETF?
HEWJ owns the iShares MSCI Japan ETF, which made up 99.98% of its assets as of August 31, 2026. On top of that, HEWJ adds currency forward contracts that offset moves in the yen against the dollar. The underlying fund keeps its yen exposure. As a result, HEWJ is designed to do better when the yen weakens and worse when it strengthens. Both funds own the same Japanese companies. The difference is the currency exposure.
Does HEWJ pay dividends?
Yes. HEWJ pays distributions twice a year. Over the 12 months to October 27, 2026, it paid $2.61 per share, for a trailing yield of 4.1%. Because payments come only twice a year and depend on the income the fund earns, the amount can change from one payment to the next. Investors who rely on steady monthly cash flow would need other sources to fill the gaps.
What is HEWJ's expense ratio?
HEWJ's expense ratio is 0.49%, according to its prospectus filed December 19, 2025. The prospectus lists a 0.53% management fee, offset by a 0.53% fee waiver. Under the SEC's standard example, a $10,000 investment earning 5% a year would cost about $50 in the first year, $157 over three years, $274 over five years and $976 over 10 years, assuming the shares are cashed out at the end of each period.
How has HEWJ performed over 10 years?
HEWJ returned an average of 10.63% a year over the 10 years ended December 31, 2024, according to its prospectus. The MSCI ACWI ex USA Index returned 4.8% a year over the same period. Based on share price, HEWJ returned 15.9% a year over the 10 years through October 27, 2026. Results varied widely from year to year, from a 14.94% loss in 2018 to a 36.2% gain in 2023.