ETFs to Capture Strengthening Japanese Corporate Earnings | Page 2 of 2 | ETF Trends

The Tokyo Stock Exchange Tokyo Price Index, or TOPIX, is current hovering around 1,794.

Investors who are interested in gaining exposure to this segment of the global market have a number of ETF options to choose from, with currency-hedged strategies currently outperforming as the Japanese yen depreciates against the U.S. dollar.

The WisdomTree Japan Hedged Equity Fund (NYSEArca: DXJ) has been a go-to options to access Japanese equities markets while hedging against foreign exchange risks, but potential investors should keep in mind that the funds could underperform non-hedged funds if the yen strengthens.

ETF investors may also look to some relatively new dynamic or adaptive currency-hedged international stock strategies that changes its currency-hedge weight based on prevailing market conditions. For instance, WisdomTree also offers the WisdomTree Dynamic Currency Hedged Japan Equity Fund (BATS: DDJP), which hedge currency fluctuations in the relative value of the foreign currency against the USD, ranging from 0% to 100% hedge based on interest rate differentials, valuations and relative price momentum of the foreign currencies compared to the USD.

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