What this ETF is trying to do

The iShares Currency Hedged MSCI Japan ETF (HEWJ) is designed to give investors exposure to Japanese stocks. A key part of this ETF is "currency hedging." This means it tries to reduce the impact of changes in the exchange rate between the U.S. Dollar and the Japanese Yen, focusing more on the performance of the stocks themselves.

What the numbers show

As of October 5, 2026, the share price is $66.78. The data shows strong growth over several timeframes:

• Year-to-Date (YTD): The price return is 26.72%, and the total return is 27.42%.

• One Year: The price return is 33.11%, while the total return is 39.60%.

• Three Year: The price return is 99.76%, and the total return is 119.46%.

Price return only measures the change in the share price. Total return is a broader measure that includes the distributions paid out to investors.

For example, the estimated price from roughly one year ago was $50.17. If an investor had put $10,000 into the ETF based on that estimated price, the price-only growth (33.11%) would have increased that amount to approximately $13,311.

Income and distribution explanation

This ETF pays out cash to investors. Its distribution yield is 3.90%. Over the last 12 months, it has made 3 payouts. These distributions happen on an irregular or less frequent basis.

It is important for beginners to remember that a high distribution yield alone can be misleading. Yield describes the cash paid out relative to the price, but it does not guarantee that the original investment is growing or safe.

NAV erosion explanation

"NAV erosion" happens when the actual value of the fund's underlying assets drops over time, often causing the share price to fall permanently.

For HEWJ, the erosion-risk score is 100, and the erosion severity is labeled as "good." The data states "No price erosion detected," and the severe erosion-risk flag is false.

Top Holdings

As of October 7, 2026, the ETF holds 6 items. The largest holdings are:

• iShares MSCI Japan ETF (EWJ): 99.87%

• JPY/USD Purchased: 3.47%

• USD Cash: 2.11%

• JPY/USD Sold: -3.48%

Pros

• Strong total returns over the one-year, three-year, and five-year periods.

• No detected price erosion according to the erosion-risk score.

• Provides a way to invest in Japan while hedging currency risk.

Cons

• Distributions are irregular and less frequent.

• The fund is heavily concentrated in one other ETF (EWJ).

Beginner takeaway

HEWJ is an ETF for people who want to invest in Japanese companies without worrying as much about the Yen's value changing against the Dollar. While it has shown significant price and total returns recently, investors should always look at both the price movement and the distributions to understand the full picture.