“The recent appetite for EWJ calls runs counter to the trend seen on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), where speculators have bought to open more than four puts for every call on the ETF during the past two weeks. Going out 10 weeks, the fund’s 50-day put/call volume ratio sits at a lofty 6.09 — higher than about four-fifths of the past year’s readings,” according to Schaeffer’s.
Related: As USD Strengthens, Currency Hedged ETFs Require a Second Look
Investors have added $159.5 million to EWJ since the start of the fourth quarter, but the ETF has lost over $1 billion year-to-date.
The iShares Currency Hedged MSCI Japan ETF (NYSEArca: HEWJ) and Deutsche X-trackers MSCI Japan Hedged Equity ETF (NYSEArca: DBJP) are among the other well-known Japan ETFs for investors to consider. Both are currency hedged and could surge if the yen weakens against the U.S. dollar.
For more information on the Japanese market, visit our Japan category.