The ETF holds 325 stocks and is highly levered to Japan’s export story via a combined weight of almost 40% to the industrial and consumer discretionary sectors. Technology and financial services names combine for almost a quarter of the fund’s weight.
Related: Japan Listed ETFs/ETPs Hit Record $219 Billion
As Fitch points out, inflation, or lack thereof, remains an issue in Japan.
“However, despite solid growth performance and a robust labour market, inflation has remained lackluster, running only slightly above 0% yoy – far below the Bank of Japan’s 2% target,” according to Fitch.
For more information on the Japanese market, visit our Japan category.