A smart beta exchange traded fund, the WisdomTree Europe Hedged Equity ETF (HEDJ) debuted on 01/04/2010, and offers broad exposure to the European Equity ETFs category of the market.What Are Smart Beta ETFs?Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.Fund Sponsor & IndexThe fund is managed by Wisdomtree. HEDJ has been able to amass assets over $1.25 billion, making it one of the larger ETFs in the European Equity ETFs. This particular fund, before fees and expenses, seeks to match the performance of the WisdomTree Europe Hedged Equity Index.The WisdomTree Europe Hedged Equity Index is designed to provide exposure to European equities while at the same time neutralizing exposure to fluctuations between the Euro and the U.S. dollar.Cost & Other ExpensesExpense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.Annual operating expenses for HEDJ are 0.58%, which makes it on par with most peer products in the space.It's 12-month trailing dividend yield comes in at 3.23%.Sector Exposure and Top HoldingsMost ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.Taking into account individual holdings, Linde Plc (LIN) accounts for about 6% of the fund's total assets, followed by Sanofi Sa (SAN) and Deutsche Telekom Ag (DTE).Its top 10 holdings account for approximately 38.03% of HEDJ's total assets under management.Performance and RiskSo far this year, HEDJ has lost about -14.70%, and is down about -11.64% in the last one year (as of 09/12/2022). During this past 52-week period, the fund has traded between $64.93 and $82.19.The ETF has a beta of 0.86 and standard deviation of 24.15% for the trailing three-year period, making it a medium risk choice in the space. With about 141 holdings, it effectively diversifies company-specific risk.AlternativesWisdomTree Europe Hedged Equity ETF is a reasonable option for investors seeking to outperform the European Equity ETFs segment of the market. However, there are other ETFs in the space which investors could consider.IShares MSCI Eurozone ETF (EZU) tracks MSCI EMU Index and the Vanguard FTSE Europe ETF (VGK) tracks FTSE Developed Europe All Cap Index. IShares MSCI Eurozone ETF has $4.96 billion in assets, Vanguard FTSE Europe ETF has $14.95 billion. EZU has an expense ratio of 0.50% and VGK charges 0.08%.Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the European Equity ETFs.Bottom LineTo learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center. Want key ETF info delivered straight to your inbox? Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.Get it free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report WisdomTree Europe Hedged Equity ETF (HEDJ): ETF Research Reports DTE Energy Company (DTE): Free Stock Analysis Report Banco Santander, S.A. (SAN): Free Stock Analysis Report Linde plc (LIN): Free Stock Analysis Report iShares MSCI Eurozone ETF (EZU): ETF Research Reports Vanguard FTSE Europe ETF (VGK): ETF Research Reports To read this article on Zacks.com click here. Zacks Investment Research