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Japan ETF (EWJ) Hits New 52-Week High

Sanghamitra Saha

For investors looking for momentum, iShares MSCI Japan ETF EWJ is probably a suitable pick. The fund just hit a 52-week high — up roughly 18.8% from its 52-week low of $48.99/share.

Does it have more gains in store? Let’s take a look at the fund and its near-term outlook to gain an insight into where it might be headed:

EWJ in Focus

The fund tracks the MSCI Japan Index consists of stocks traded primarily on the Tokyo Stock Exchange. The fund is heavily invested in sectors like industrials (20.91%), consumer discretionary (18.6%), information technology (11.34%) and financials (10.44%). It charges 47 bps in fees (see all Asia-Pacific (Developed) ETFs here).

Why the Move?

Japan’s Nikkei index jumped to the highest in more than a year on optimism over improved corporate earnings. A slightly weaker yen also boosted share prices of Japan’s major exporters, as a weaker domestic currency propels earnings repatriated from overseas.

More Gains Ahead?

The fund has a Zacks ETF Rank #1 (Strong Buy). The fund also has a positive weighted alpha of 9.99, which gives cues of further rally.

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iShares MSCI Japan ETF (EWJ): ETF Research Reports
 
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