Abenomics: Yen-Hedged ETFs for Japan Up 30% in 2013

ETF Trends

WisdomTree Japan Hedged Equity Fund (DXJ) and db-X MSCI Japan Currency-Hedged Equity Fund (DBJP) are among the best-performing ETFs so far this year as “Abenomics” kicks into high gear.

DBJP and DXJ are up 33.1% and 29.2% year to date, according to Morningstar.

The ETFs have benefitted from surging Japanese stocks and a weaker yen. The funds track the country’s stock market while hedging their currency exposure to the Japanese yen.

In fact, DXJ is the most popular ETF in 2013 with net inflows of $5.4 billion, according to IndexUniverse data. [Japan ETF Rakes in $5 Billion, Rallies to Highest Since July 2008]

DXJ and DBJP have been perfectly positioned for the unprecedented quantitative easing from the Bank of Japan designed to stoke inflation. [A Closer Look at Two Japan ETFs that Hedge the Yen]

Japan’s household spending surged in March at the fastest pace in nine years “in a sign that Prime Minister Shinzo Abe’s bold efforts to end two decades of stagnation are lifting consumer confidence and setting the stage for an economic revival,” Reuters reports.

WisdomTree Japan Hedged Equity Fund

View photo

.
japan-etf-dxj

japan-etf-dxj

View Comments