Even while Japan is seeing a rise in the number of Covid-19 cases, the country is forging ahead with its recovery. For example, Japan is already easing its travel restrictions despite the number of new cases.
Per a Forbes report, “the country’s Finance Ministry on Tuesday said regional economies are showing signs of recovery from the pandemic, and the government is once again allowing the entry of foreign nationals teaching at international schools and their families as the nation eases some restrictions on a travel ban imposed to curb the spread of the virus, Kyodo News said.”
“Japan largely has been spared the brutal impact coronavirus has caused in other nations, with some researchers suggesting that widespread use of facial coverings contributed greatly to Japan’s early results,” the report said further. “Many of the restrictions urged for Japanese businesses — including restrictions on popular karaoke bars and restaurants — were voluntary, but Japanese citizens by and large donned face masks without the kind of showdowns mask-wearing has sparked in the United States. The country’s success gained attention globally after Covid-19 began its initial spread, with what is referred to as the ‘Japan Model’ — limited testing and no lockdown, and suggestions to businesses rather than orders.”
Investors looking for exposure to Japan can look at exchange-traded funds (ETFs) like the Xtrackers MSCI Japan Hedged Equity ETF (DBJP ). DBJP seeks investment results that correspond generally to the performance, of the MSCI Japan US Dollar Hedged Index.
The fund, using a “passive” or indexing investment approach, seeks investment results that correspond generally to the performance, of the underlying index, which is designed to track the performance of the Japanese equity market while mitigating exposure to fluctuations between the value of the U.S. dollar and the Japanese yen. It will invest at least 80% of its total assets in component securities (including depositary receipts in respect of such securities) of the underlying index.
Another fund to look at is the Xtrackers Japan JPX-Nikkei 400 Equity ETF (JPN ). JPN seeks investment results that correspond generally to the performance, before fees and expenses, of the JPX-Nikkei 400 Net Total Return Index.
The index is designed to track the performance of equity securities of issuers who are primarily listed on the following sections of the Tokyo Stock Exchange (“TSE”): the 1st section, the 2nd section, Mothers or JASDAQ. The fund will invest at least 80% of its total assets in component securities of the underlying index.