The $10.2 billion WisdomTree Japan Hedged Equity Fund (NYSEArca: DXJ) was higher in early U.S. trade Tuesday, benefiting from gains in Japanese stocks and a weaker yen.
DXJ, the top-selling ETF this year, rose 1.2% in premarket action after dropping about 3% on Friday. The ETF lost more than 6% last week. [Individual Investors on the Hook for Japan ETF Losses]
The WisdomTree fund hedges its currency exposure, so it isn’t hurt when the yen falls against the U.S. dollar.
The yen was lower Tuesday after an adviser Japan’s Prime Minister Shinzo Abe said the nation’s central bank can launch even more economic stimulus.
Bank of Japan Governor Haruhiko Kuroda “should continue to trust in his judgment and ease further” if needed, said Koichi Hamada, the retired Yale University professor advising Abe, according to a Bloomberg report. The policy is working “as well or better than expected,” Hamada added.
Also, board member Ryuzo Miyao said the Bank of Japan would fine-tune market operations to ensure its unprecedented easing campaign is not derailed, Reuters reported.
WisdomTree Japan Hedged Equity Fund
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