ETF Trends Editor Tom Lydon appeared on Yahoo Finance Breakout Wednesday to discuss the rising wave of Japanese equities and how investors can access the market with an exchange traded fund that also hedges against currency risks.

The Wisdom Tree Japan Hedged Equity ETF (NYSEArca: DXJ) captures the rally while hedging against a depreciating yen.

“The idea is, with the Nikkei up 20%, the DXJ is also hedged against the yen falling, which is down 14% during that same time, so you’re short the yen as well,” Lydon explained to Breakout. [Japan Currency-Hedged ETF Hauls in $2 Billion]

“They’re making big, big bets that they’re going to have a global economic turnaround,” he added.

Watch the Breakout video to see the full interview.

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