In comparison, DBJP takes a broader approach to Japanese equities.
“The BoJ’s bazooka has sparked the buying of Japanese stocks, especially domestic sectors like real estate,” Yasuo Sakuma, a portfolio manager at Bayview Asset Management, said in a Reuters article.
DBJP’s top holdings include Toyota Motor 5.9%, Mitsubishi Financial Group 3.2%, Honda Motor 2.5%, Sumitomo Misui Financial 2.3%, Mizuho Financial 2.0%, Softbank 1.8%, Misubishi Estate 1.7%, Takeda Chemical 1.6% and Canon 1.6%.
Sector allocations include consumer discretionary 23.0%, financials 21.9%, industrials 19.2%, information tech 9.0%, materials 6.9%, consumer staples 5.9%, health care 5.6%, telecom services 4.6%, utilities 2.6% and energy 1.3%.
“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,” Martin Kremenstein, Managing Director, Americas Head of Passive Asset Management for Deutsche Asset and Wealth Management, said in a recent interview. “We think the entire Japanese stock market will benefit from a weaker yen, not just exporters.”
For more information on Japan, visit our Japan category.
Max Chen contributed to this article.