Popularity in yen-hedged exposure to Japanese equities has skyrocketed after the Bank of Japan pledged to throw $1.4 trillion into the economy in under two years, Reuters reports.
“The key is to achieve the 2% inflation target,” Bank of Japan Governor Haruhiko Kuroda said in the article. “We have in mind a time frame of roughly two years, but we’ll take necessary steps until the target is met.”
The Bank of Japan came under pressure to double its inflation target to 2% after newly elected Prime Minister Shinzo Abe came into power. The country has been plagued with a two decade long deflationary environment.
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Max Chen contributed to this article.