SEE MORE: Hedged Japan ETFs to Capitalize Off Additional Stimulus

Additionally, business investment decreased for the second straight quarter.

Year-to-date, the non-hedged iShares MSCI Japan ETF (NYSEArca: EWJ) gained 2.5% while the CurrencyShares Japanese Yen Trust (NYSEArca: FXY) rose 18.4%.

Meanwhile, the WisdomTree Japan Hedged Equity Fund (NYSEArca: DXJ) declined 16.0%, iShares Currency Hedged MSCI Japan ETF (NYSEArca: HEWJ) decreased 14.4% and Deutsche X-trackers MSCI Japan Hedged Equity ETF (NYSEArca: DBJP) dropped 14.4%. The currency-hedged ETFs outperform non-hedged funds when the local currency depreciates against the U.S. dollar, but these funds have been underperforming as the JPY surged against the USD this year.

ETF investors have been pulling out of the currency-hedged Japan play as the yen continues to appreciate. For example, DXJ saw $281.8 million in net outflows over the past week and experienced $5.2 billion in outflows year-to-date, according to

For more information on the Japanese markets, visit our Japan category.

iShares MSCI Japan ETF