WisdomTree’s Yen Hedged Sector ETFs Debut

ETF Trends

Looking to capitalize on the success of the WisdomTree Japan Hedged Equity Fund (DXJ) , WisdomTree (WETF), the fifth-largest U.S. ETF sponsor, will introduce five yen hedged Japanese sector ETFs today.

The new ETFs include the WisdomTree Japan Hedged Financials Fund (NYSEArca:DXJF) and the Japan Hedged Real Estate Fund (NYSEArca:DXJR) , both of which charge 0.43% per year.

“A critical component of Abenomics involves the reflation of financial assets. The Bank of Japan (BOJ) itself has stated its goal to suppress equity risk premiums by expanding its balance sheet to purchase exchange-traded funds and making direct investments into real estate investment trusts. The Japanese financial sector stocks and real estate-related companies are therefore part of a theme many refer to as ‘Japanese reflation,” said WisdomTree Research Director Jeremy Schwartz in a note out Monday. [New Ways to Play Abenomics]

The WisdomTree Japan Hedged Health Care Fund (NYSEArca:DXJH) and the WisdomTree Japan Hedge Tech Media & Telecom Fund (NYSEArca:DXJT) also debut today. Those new ETFS also carry annual expense ratios of 0.43%.

The WisdomTree Japan Hedge Tech Media & Telecom Index is “weighted by float-adjusted market capitalization, designed to provide exposure to Japanese tech, media and telecom companies while at the same time neutralizing exposure to fluctuations between the yen and the U.S. dollar,” according to WisdomTree.

The fifth member of group launching today is the WisdomTree Japan Hedged Capital Goods Fund (NYSEArca:DXJC) . DXJC also carries a 0.43% annual expense ratio. WisdomTree filed for the yen hedged sector ETFs last year. [Japan Hedged Sector ETFs Could Launch in 2014]

In addition to DXJ, WisdomTree has had some success with the WisdomTree Japan Hedged Small Cap Fund (DXJS) . DXJS debuted in late June 2013 and has nearly $76 million in assets under management.

With $11.4 billion in assets under management, DXJ is by far the largest currency hedged ETF and WisdomTree’s largest fund.

WisdomTree Japan Hedged Equity Fund

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The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.

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