Japanese ETFs were in focus again Tuesday as the benchmark Nikkei 225 rose above the 14,000 mark for the first time since the financial crisis.
“Japanese stocks soared Tuesday, towering over other Asian markets as Tokyo investors returning from a four-day weekend played catch-up with central-bank decisions, strong U.S. jobs data and a weaker yen,” MarketWatch reports. The Nikkei rose more than 3%.
WisdomTree Japan Hedged Equity (NYSEArca: DXJ) and iShares MSCI Japan (NYSEArca: EWJ) are the two best-selling ETFs in 2013, raking in nearly $10 billion combined. [Japan ETFs Open the Floodgates as Yen Tanks]
DXJ has a performance edge this year because the specialized ETF hedges its currency exposure to the Japanese yen, which has weakened versus the dollar amid the Bank of Japan’s unprecedented efforts to stoke inflation and boost the country’s exporters.
The WisdomTree ETF has posted a total return of 31.3% year to date, compared with a gain of 20.3% for EWJ, the iShares fund.