ETFdb Logo
  • ETF Database
  • Channels
    • Themes
      • Active ETF
      • Alternatives Channel
      • Artificial Intelligence
      • China Insights
      • Climate Insights
      • Core Strategies
      • Crypto
      • Disruptive Technology
      • Energy Infrastructure
      • ETF Building Blocks
      • ETF Education
      • ETF Investing
      • ETF Strategist
      • Faith-Based Investing
      • Financial Literacy
      • Fixed Income
      • Free Cash Flow
      • Innovative ETFs
      • Invest Beyond Cash
      • Leveraged & Inverse
      • Modern Alpha
      • Portfolio Strategies
      • Tax Efficient Income
    • Asset Class
      • Equity
        • U.S. Equity
        • Int'l Developed
        • Emerging Market Equities
      • Alternatives
        • Gold/Silver/Critical Materials
        • Crypytocurrency
        • Currency
        • Volatility
      • Fixed Income
        • Investment Grade Corporates
        • US Treasuries & TIPS
        • High Yield Corporates
        • Int'l Fixed Income
    • ETF Ecosystem
    • ETFs in Canada
    • Market Outlook
    • Crypto ETF Hub
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Database Categories
    • Indexes
    • Scenario Analysis
    • Watchlists
    • Head-To-Head ETF Comparison Tool
    • Mutual Fund To ETF Converter
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
  • Research
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF of the Week Podcast
    • Gaining Perspective Podcast
    • ETF Prime Podcast
    • Video
  • Company
    • About VettaFi
    • Get VettaFi’ed
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Modern Alpha Channel
  2. Exploring Japan ETFs: Top Performers and Investment Opportunity
Modern Alpha Channel
Share

Exploring Japan ETFs: Top Performers and Investment Opportunity

Nick PeckJun 22, 2023
2023-06-22

Japan has been gaining traction among investors and advisors as a topic of interest recently. Some of the top investors and investment firms continue to increase their investments in Japanese stocks and Japan ETFs. As Japan’s economy continues to recover from years of stagnation, it has become an attractive destination for many investors.

Japan’s policies to stimulate growth and corporate reforms have contributed to the strong performance of its stock market. This has made it an appealing investment option for those seeking exposure to international equities. As a result, Japan has become a popular destination for investors looking for opportunities in a market with a favorable economic outlook.

Some Japan ETFs continue to perform and offer exposure to Japanese equities. Japan’s potential investment opportunities are hard to ignore. In this article, we will delve deeper into some of the top-performing Japan ETFs, analyzing their YTD performance. We will also discuss whether advisors and investors should consider investing in them.

See more: Japan ETFs Are Attractive International Ideas

Top-Performing Hedged Japan ETFs

The WisdomTree Japan Hedged Equity Fund (DXJ B-) has been one of the top-performing Japan ETFs, with a YTD return of 31.39%. This fund offers exposure to Japanese equities while hedging against currency fluctuations. In the past month, DXJ has seen net inflows of $400.73 million, indicating growing investor interest in this fund.

The Xtrackers MSCI Japan Hedged Equity ETF (DBJP A+) is another top-performing Japan ETF, with a YTD return of 29.07%. This fund stands out due to its ability to mitigate currency exposure that accompanies investing in foreign equities. By doing so, DBJP aims to provide investors with exposure to Japanese equities while minimizing the impact of currency fluctuations on returns. However, it’s important to note that currency hedging can be a double-edged sword, as it can also limit potential gains if the currency appreciates. Despite this, DBJP has seen a strong performance recently. This makes it an attractive option for those seeking exposure to Japanese equities with a currency hedge.

See more: What’s Behind Big Spike for Currency-Hedged Japan ETFs?

The Franklin FTSE Japan Hedged ETF (FLJH B) is another top-performing Japan ETF, with a YTD return of 27.96%. This fund offers investors hedged international stock exposure with a low expense ratio of 0.09%. This makes it an attractive option for those seeking cost-effective exposure to Japan’s equity market. However, despite its strong performance, FLJH still trails behind the iShares Currency Hedged MSCI Japan ETF (HEWJ B-) in terms of assets.


Content continues below advertisement

What About This Japan ETF?

The JPMorgan BetaBuilders Japan ETF (BBJP ) is also a Japan ETF worth considering. It has a YTD return of 16.61%. This fund offers similar exposure to (EWJ A), one of the most popular Japan ETFs that has just barely underperformed BBJP in YTD performance. That said, BBJP has a lower expense ratio of 0.19%. This makes it an attractive option for investors looking for a high-performing and affordable ETF. In the past month, BBJP has seen net inflows of $478.37 million. This indicates growing investor interest in this fund.

Should You Invest?

While these funds have been performing well, it’s important to note that Japan ETFs are not without risk. Japan’s economy has been struggling for years with low inflation, an aging population, and a shrinking workforce. However, big investors like Warren Buffett continue to pour more money into Japan’s stock market, indicating that there may be untapped potential in the market.

Ultimately, Japan ETFs can be a compelling investment option for those seeking exposure to Japan’s equity market. However, as with any investment, it’s important for investors and advisors to carefully consider the risks and potential benefits of each fund before deciding which one to invest in. Factors such as expense ratios, liquidity, and currency risk can all impact the performance of Japan ETFs, so it’s important to evaluate each option carefully and make an informed decision based on your individual investment goals and risk tolerance.

For more news, information, and analysis, visit the Financial Literacy Channel.

Loading Articles...
Our Sites
  • VettaFi
  • Advisor Perspectives
  • ETF Trends
Tools
  • ETF Screener
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Database Pro
More Tools
  • Financial Advisor & RIA Center
Explore ETFs
  • ETF News
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Information
  • Contact Us
  • Terms of Use and Privacy Policy
  • © 2025 VettaFi LLC. All rights reserved.

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X