Due to its indexing methodology, JPXN and HJPX have a slightly greater tilt toward mid-cap stocks, compared to the iShares MSCI Japan ETF (NYSEArca: EWJ), which holds large- and mid-capitalization equities tracked by the MSCI Japan Index, a cap-weighted benchmark. HJPX has a 48.2% tilt toward mega-caps, 38.1% in large-caps and 13.5% in mid-caps. In contrast, EWJ has a 52.8% mega-caps, 38.0% large-caps and 9.2% mid-caps.
Moreover, industrials at 19.9% makes up the largest sector weight in HJPX’s portfolio, followed by financials 19.4%, consumer discretionary 18.8%, information technology 10.0%, consumer staples 9.4%, health care 8.6%, materials 6.1% and telecom 5.5%. On the other hand, EWJ has a larger position in consumer discretionary 22.2%, followed by financials 19.7%, industrials 18.2%, information tech 10.2% and health care 7.6%.
The new HJPX will also be competing against recently launched Deutsche X-trackers Japan JPX-Nikkei 400 Hedged Equity ETF (NYSEArca: JPNH), the currency-hedged equivalent to the Deutsche X-trackers Japan JPX-Nikkei 400 Equity ETF (NYSEArca: JPN), which also tracks the JPX-Nikkei 400 Index.
For more information on new fund products, visit our new ETFs category.
Max Chen contributed to this article.