Based on the inflows in DXJ, the weakening in the Yen spurred on by Japan monetary policy has clearly been a topic of focus among ETF portfolio managers, and has translated into strong asset flows in related ETFs.
Conceptually, financial stocks should stand to benefit from a weakening Yen, as the largest banks in Japan with Yen heavy balance sheets will likely see a lift in earnings results due to stronger demand in the lending markets.
EWJ and DXJ on the other hand, tend to have heavy portfolio investment in Japanese exporters (companies like Takeda Pharmaceutical, Canon, Honda Motor, Toyota Motor for example) and FEFN offers a different perspective and exposure to the historic scenario that is currently unfolding in Japan.
iShares MSCI Far East Financials Sector
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