Japan ETF Benefits from Focus on Exporters, Plunging Yen

December 27th at 2:28pm by Tom Lydon

WisdomTree Japan Hedged Equity Fund (NYSEArca: DXJ) has been extremely popular in the second half of December with many investors positioning for a rebound in Japan stocks and a weaker yen.

The ETF tracks Japan equities but hedges its exposure to the yen so it won’t be hurt when the Japanese currencies weakens against the U.S. dollar.

With the Liberal Democratic Party and Shinzo Abe back in power after the election, the government will try to enact more aggressive measures to stimulate the economy. [Japan ETF Surges to $1 Billion After Election]

Investors are applauding WidsomTree’s recent move to exclude from the ETF’s index those companies that derive more than 80% of their revenue from Japan. The goal is to focus more on exporters that will directly benefit from a weaker yen. [ETF for Japan Stocks and Weaker Yen]

I do the “ETF of the Week” for MarketWatch every Thursday on Chuck Jaffe’s MoneyLife Show where I highlight big movers and disappointments within the exchange traded fund market.

On Thursday, I focused on the WisdomTree Japan Hedged Equity Fund, which has broken above $1 billion in assets.

Click here to listen.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.

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