As the yen weakens and the Japanese economy expands, investors can take a look at yen currency-hedged Japan equity ETFs, like the WisdomTree Japan Hedged Equity Fund (NYSEArca: DXJ) and db X-trackers MSCI Japan Hedged Equity Fund (NYSEArca: DBJP), which jumped 35.9% and 44.0%, respectively, year-to-date. In comparison, the iShares MSCI Japan ETF (NYSEArca: EWJ), a non-currency hedged ETF, rose 22.0%. [Slumping Yen a Boon for Japan ETFs]
The currency-hedged Japan equity ETFs will outperform a non-currency hedged ETF when the Japanese yen depreciates against the U.S. dollar.
CurrencyShares Japanese Yen Trust
For more information on Japan, visit our Japan category.
Full disclosure: Tom Lydon’s clients own DXJ.