The Xtrackers Japan JPX-Nikkei 400 Equity ETF (JPN) tracks an index of 400 companies screened for return on equity, operating profit, and market capitalization in an effort to identify high-quality Japanese companies.
JPN offers broadly similar exposure as the iShares JPX-Nikkei 400 ETF (JPXN) for a fraction of the management fee. It’s worth nothing that JPXN is older and has more assets, though neither fund is a juggernaut when it comes to assets or daily trading volume. For those who need to trade in size, the best bet is likely going to be the iShares MSCI Japan ETF (EWJ). EWJ invests in a broader universe of Japanese equities and is by far the largest Japan-focused fund, though it charges an above-average management fee.
Investors might also compare JPN to multi-factor funds that invest in Japanese stocks, such as the Goldman Sachs ActiveBeta Japan Equity ETF (GSJY), Global X Scientific Beta Japan ETF (SCIJ), First Trust Europe AlphaDEX Fund (FJP), or the the JPMorgan BetaBuilders Japan ETF (BBJP), which has amassed considerable assets since its 2018 debut. Those who want currency-hedged exposure to Japanese equities could look to the WisdomTree Japan Hedged Equity Fund (DXJ).