Since Aug. 7, the CurrencyShares Japanese Yen Trust (NYSEArca: FXY) has tumbled 4.5% as the yen has hit a series of six-year lows against the U.S. dollar.

So precipitous has FXY’s slide been that it was just one of 21 ETFs to hit a new 52-week low on Wednesday. Predictably, a sliding yen has been a boon for currency-hedged ETFs such as theWisdomTree Japan Hedged Equity Fund (NYSEArca: DXJ) and the Deutsche X-trackers MSCI Japan Hedged Equity ETF (NYSEArca: DBJP). [Stealth Rally for Yen-Hedged ETFs]

However, as those ETFs have impressed since Aug. 7, many investors are missing out. DXJ and DBJP are up 6.3% and 6%, respectively, over that period, but inflows to those ETFs suggest some investors need some more convincing regarding the yen’s current spiral to multi-year lows. Since Aug. 7, DXJ and DBJP have hauled in just $49.3 million combined.

Ongoing yen weakness could spark new inflows to Japan hedged ETFs. DXJ has suffered significant outflows this year, something those short shares of WisdomTree (NasdaqGS: WETF) have not been shy about pointing, but new inflows to the ETF spurred by yen weakness combined with inflows to the WisdomTree Europe Hedged Equity Fund (NYSEArca: HEDJ), something WisdomTree bears have been loathe to acknowledge, could lift the stock. [Global Markets Could Lift WisdomTree]

Investors are missing out on other opportunities. While they have been right to yank $16.7 million from FXY since Aug. 7, none have had the fortitude to embrace the ProShares UltraShort Yen (NYSEArca: YCS), which tries to reflect the daily -2x or -200% daily return of the USD/JPY currency pair. YCS is up 9.3% since Aug. 7, but investors have put no cash to work in the fund.

Subscribe to our free daily newsletters!
Please enter your email address to subscribe to ETF Trends' newsletters featuring latest news and educational events.