iShares MSCI Japan Index Fund (EWJ) has more assets than the other Japanese exchange traded funds (ETFs) combined. Since its debut in 1996, it has survived two major recessions, holding 351 companies  which represent 85% of Japan’s stock market.  Well known holdings include Canon (CAJ), Honda Motor (HMC), Sony (SNE), and Toyota Motor (TM), tells Trang Ho of Investor’s Business Daily.

Other Japan focused ETFs include

  • iShares S&P Topix (ITF)
  • WisdomTree Japan High Yielding Equity (DNL)
  • WisdomTree Japan Total Dividend (DXJ)
  • WisdomTree Japan Small-Cap Dividend (DFJ)
  • SPDR/Russell Nomura Prime (JPP)
  • SPDR/Russell Nomura Small (JSC)

Although Japan’s economy has grown for 5 straight years, consumer prices are unchanged while consumer spending is low. In contrast, high corporate profits are trickling down to households, boosting domestic demand. Last year, Japan’s markets underperformed most global markets, making investors think 2007 may be a year of "rising returns".

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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.