This ETF, the first from Precidian Funds, offers exposure to one of the most widely followed benchmarks in the world: the Nikkei 225. That benchmark is used as a barometer for the Japanese economy, and includes 225 stocks listed on the Tokyo stock exchange. Given that country-specific focus, NKY can be used in a variety of different ways. It might be appealing to investors looking to make a tactical shift towards Japan (or as a short selling candidate for those with a bearish outlook). It might also be a useful tool for adding Japan exposure to a longer-term, buy-and-hold portfolio. Some investors may prefer to access Japan though broad-based ETFs such as EFA or ACWI, but those looking to fine tune Japanese exposure to optimize their risk/return profile may find country-specific funds such as NKY to be useful. The most noteworthy element of NKY is the nature of the underlying index. The Nikkei is a price-weighted benchmark, a feature that may be appealing to certain investors. Because it breaks the link between stock price and weighting, NKY steers clear of some of the potential inefficiencies that may plague cap-weighted products such as EWJ. Price weighting can also be seen as a somewhat arbitrary methodology that doesn't always accurately reflect movements in the health of the overall economy. While NKY and EWJ offer exposure to many of the same companies, the breakdown by concentration, individual holdings, and sector allocations can be quite different between the two. Investors looking for other ways to access Japan have no shortage of options in the Japan Equities ETFdb Category, including small caps (JSC, SCJ), currency hedged products (DXJ, DBJP), and an ETF linked to an "enhanced" index (FJP). NKY features an attractive expense ratio; this ETF is among the most cost efficient in the category.
The adjacent table gives investors an individual Realtime Rating for NKY on several different metrics, including liquidity, expenses, performance, volatility, dividend, concentration of holdings in addition to an overall rating. The "A+ Metric Rated ETF" field, available to ETFdb Pro members, shows the ETF in the Japan Equities with the highest Metric Realtime Rating for each individual field. To view all of this data, sign up for a free 14-day trial for ETFdb Pro. To view information on how the ETFdb Realtime Ratings work, click here.View the Category Report
The following tables and charts contain in-depth metrics for this ETF and compare it to similar peer ETFs within its ETFdb Category.
This ETF is not currently available for commission free trading on any platforms.
There are 9 other ETFs in the Japan Equities ETFdb Category that are also eligible for commission free trading:
This section shows how this ETF has performed relative to its peer group ETFdb Category.
The following charts can be customized to display historical performance in a number of different formats, including line charts, bar charts, and candlesticks. Time periods can be adjusted to increase or decrease the period shown, ranging from five minutes to several months.
The following chart also includes the option to compare the performance of NKY relative to other ETFs and benchmarks or to include indicators such as Bollinger Bands, relative strength, and moving averages.
This section shows how the volatility of this ETF compares to the peer group ETFdb Category.
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