The top-selling ETF in the category this year is iShares MSCI Japan (NYSEArca: EWJ), while related funds such as WisdomTree Japan Total Dividend (NYSEArca: DXJ), ProShares UltraShort Yen (NYSEArca: YCS) and WisdomTree Japan Small Cap (NYSEArca: DFJ) have also been popular, according to ConvergEx.
After the earthquake and tsunami, “ETF investors clearly think the reconstruction of Japan is an important investable theme,” Colas remarked.
Other single-country stock ETFs seeing solid inflows this year “fit much more neatly into a conventional thematic investment approach: Buy export-driven and/or natural resource haven countries,” the strategist noted.
Examples include iShares MSCI Germany (NYSEArca: EWG), iShares MSCI Brazil (NYSEArca: EWZ), iShares MSCI Canada (NYSEArca: EWC), Market Vectors Russia (NYSEArca: RSX) and iShares South Korea (NYSEArca: EWY).
Check out our recent coverage of single-country stock and currency ETFs:
- South Korea wasn’t reclassified as a developed market by benchmark manager MSCI (NYSE: MSCI) in a recent review as some investors had expected. An exchange traded fund that invests in the country is holding slim gains for 2011. [South Korea ETF Keeps ‘Emerging’ Tag]
- An exchange traded fund following the movement of Brazil’s currency against the U.S. dollar has been rising after a steep pullback in late 2010 due to government intervention. [Brazilian Real ETF Creeps Higher]
- The Netherlands exchange traded fund has been down lately as the Eurozone financial saga continues and investors await a key austerity vote this week in Greece. [Netherlands ETF Falls]
- The Swedish economy is expected to expand this year but will begin to slow, according to recent research. [Sweden ETF Tumbles]
- An exchange traded fund for South Africa has fallen into red for 2011 and recently dropped below its 200-day moving average, a technical key level in technical analysis. [South Africa ETF Hurt]
- ETF Spotlight on Rydex CurrencyShares Swiss Franc Trust. [ETF Spotlight]