Consequently, more people are increasing their allocations to the Japan’s stocks. For instance, Morgan Stanley Wealth management has recommended a 5% allocation to Japanese stocks from 0%, and David Darst, the firm’s chief investment strategies, expects another 30% to 40% rise this year in terms of the yen.
DXJ tracks the customized WisdomTree Japan Hedged Equity Index, and DBJP follows the MSCI Japan Index. So far, DBJP has been outperforming DXJ. DBJP has gained 41.3% year-to-date and 63.1% over the past year, while DXJ increased 36.9% year-to-date and 56.9% over the past year.
However, most investors have gravitated toward DXJ, which has gathered almost $6 billion in assets so far this year, compared to the $60 million that flowed into DBJP. Although, this may be partly because DXJ has a cheaper 0.48% expense ratio, whereas DBJP has a 0.50% expense ratio, and DXJ was the first to market.
For more information on Japan, visit our Japan category.
Max Chen contributed to this article.
Story updated to correct name of DBJP.