“All of that quantitative easing that we’re seeing out of the [Bank of Japan], that’s putting downward pressure on the yen, which makes Japan more attractive,” Ross said on the network.
Yen hedged ETFs have enjoyed strong gains after Prime Minister Abe introduced his so-called three arrows. Monetary easing and fiscal stimulus have buoyed Japanese equities and weakened the yen in the past few years.
Another option to consider is the recently launched Deutsche X-trackers Japan JPX-Nikkei 400 Equity ETF (NYSEArca: JPN) tracks the relatively new JPX-Nikkei 400 Index, which is also being used as a benchmark for Japan’s Government Pension Investment Fund, the largest pension fund in the world. [A New ETF for Japan’s Revitalized Equity Market]
The yen’s spike has prompted global investors to run for the exits when it comes to Japanese equities, but inflows to some of the major Japan exchange traded funds trading in the U.S. have been steady since the start of August.
Deutsche X-trackers MSCI Japan Hedged Equity ETF
