DXJT features a nearly 9.4% weight to Japan’s Softabank (OTC: SFTBY), whichowns 32.4% of Alibaba. The ETF’s weight to Softbank is nearly 300 basis points above its allocation to its second-largest holding, Hitcahi. [An ETF With a Backdoor to Alibaba]
Quite simply, Softbank’s Alibaba is legendary. Jack Ma’s company now has a market value of $250 billion, but Softbank paid just $20 million for its initial Alibaba stake.
As for DXJT, it’s Alibaba-aided run can continue in the near with the company’s first earnings report due out Tuesday. According to average analysts’ expectations, the company is expected to show net profits of $1.17 billion over the third quarter, with earnings per share at 36 cents.
WisdomTree Japan Hedged Tech Media & Telecom Fund
Todd Shriber owns shares of Alibaba.