The Bank of Japan is spending around $145 billion per month for the quantitative easing plan. The US Federal Reserve is spending about $85 billion per month on open market asset purchases, in comparison, reports Tony Sagami for Uncommon Wisdom. [Weaker Yen Gives Japanese Equity ETFs a Chance in 2013]
“This year is a case in point: through Feb. 5, Japanese stocks are up only 1.2% in dollar terms despite a 9.3% advance when measured in yen,” Alec Young of S&P Capital IQ said. “This leaves Japan trailing the broader MSCI EAFE Index’s 4% gain.”
The new government is planning on creating enough money to pull Japan out of the deflationary pattern and into an inflationary environment to push the yen’s value lower. For now, Japanese equity-focused ETFs are reacting positively.
Other Japan equity ETFs:
Tisha Guerrero contributed to this article.