“Overseas investors strongly believe that the Japanese economy’s prospects fundamentally rely on whether the BOJ’s easing stance continues a commitment to raising stock prices, even beyond the important question of whether it reaches a 2 percent inflation price target,” Nishioka and Long Hanhua Wang said in a note. [Japan ETFs Still Popular With Investors]
Consumer prices, excluding fresh food, inched up 1.3% in January year-over-year, the quickest pace since 2008.
The iShares MSCI Japan ETF provides exposure Japanese equities and is subject to currency risks – so a depreciating yen currency can weigh on EWJ’s overall returns. However, the WisdomTree Japan Hedged Equity Fund hedges against a weak yen, allowing the fund to outperform a non-hedged Japan ETF if the yen depreciates against the dollar.
WisdomTree Japan Hedged Equity Fund
For more information on Japan, visit our Japan category.