CurrencyShares Japanese Yen Trust (NYSEArca: FXY), which follows the movement of the yen against the U.S. dollar, is off about 14% the past three months. [Japanese Yen ETFs and the Carry Trade]
“The Bank of Japan has been trying to kickstart the Japanese economy for nearly 30 years but it always fell short of devaluing the yen. It had tried to create inflation before, but now it is trying to do so by devaluing the yen materially,” said Martin Kremenstein, Managing Director, Americas Head of Passive Asset Management for Deutsche Asset and Wealth Management.
A Deutsche Bank subsidiary is the investment advisor to DBJP.
“The yen’s recent decline has given a real boost to the Japanese stock market but those invested in an unhedged Japanese equity fund didn’t participate as much as those in DBJP,” Kremenstein said in a recent telephone interview. “We think the entire Japanese stock market will benefit from a weaker yen, not just exporters.”
Note: On Thursday, Feb. 7, ETFtrends.com will be hosting a webcast “Take the Yen Out of Japan.” The webcast will feature Jeremy D. Schwartz, director of research at WisdomTree Asset Management. One hour of CFP/CIMA CE Credit is approved. Register now.
WisdomTree Japan Hedged Equity
