While Japanese stocks have rallied, Japan’s banks and a currency-hedged financial sector exchange traded fund have been outperforming the broader market.

The WisdomTree Japan Hedged Financials Fund (NYSEArca: DXJF), which tracks the Japanese financial sector and hedges against a depreciating yen currency, surged 24.5% over the past month.

Meanwhile, broad currency-hedged Japan ETF plays like the WisdomTree Japan Hedged Equity Fund (NYSEArca: DXJ) rose 13.3%, iShares Currency Hedged MSCI Japan ETF (NYSEArca: HEWJ) increased 10.9% and Deutsche X-trackers MSCI Japan Hedged Equity ETF (NYSEArca: DBJP) gained 10.9% in the past month.

In contrast, the iShares MSCI Japan ETF (NYSEArca: EWJ) added 2.6%.

Japanese bank stocks started to strengthen in November after firms revealed better-than-expected second-quarter results, according to Bloomberg.

“Financial stocks are likely to be bought on the view higher bond yields will be reflected down the road,” Toshihiko Matsuno, a senior strategist at SMBC Friend Securities Co, told Bloomberg last month.

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