FXY, the yen ETF, was down 12.1% for the three months ended Jan. 18, according to Morningstar. [Currency ETFs: Everyone Hates the Japanese Yen]
The yen’s weakness has helped Japanese stocks and ETFs such iShares MSCI Japan (NYSEArca: EWJ).
Also, WisdomTree Japan Hedged Equity Fund (NYSEArca: DXJ) has seen inflows of over $800 million year to date. 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. It is up 21.5% the past three months, compared with a 7.7% for EWJ, which doesn’t hedge its yen exposure. [Japan ETF Benefits from Focus on Exporters, Plunging Yen]
db-X MSCI Currency Hedge Equity Fund (NYSEArca: DBJP) is an ETF following a similar strategy.
CurrencyShares Japanese Yen Trust
