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Japan ETFs Rake in Cash as Yen Weakens


Japan based equity ETFs continue to see strong inflows as of late, with the largest ETF in the space in terms of assets under management, iShares MSCI Japan (EWJ), taking in north of $400 million in the past week, bringing it to $1.06 billion in net inflows, year to date.

However, nipping at its heels in terms of asset levels is now WisdomTree Japan Hedged Equity (DXJ), which has reeled in more than $3 billion YTD and about $234 million last week.

EWJ has an expense ratio of 0.51% while DXJ charges 0.48%.

Average daily trading volume has also picked up significantly in DXJ (2.6 million shares in ADV) versus EWJ’s 33 million shares. [Japan ETFs Rally on Central Bank Easing Talk]

EWJ has a total of $6.39 billion in AUM and DXJ now has accumulated $4.57 billion as the space has been extremely popular with both retail and institutional ETF investors.

From a portfolio composition standpoint the two ETFs look somewhat different at least in the top five holdings. EWJ’s top five rounds out: (Toyota Motor 6.12%, Mitsubishi UFJ Financial Group 3.07%, Honda Motor Co 2.61%, Sumitomo Mitsui Financial Group 2.35%, and Mizuho Financial Group Inc. 2.19%) while DXJ top weightings are Mitsubishi UFJ Financial Group 5.49%, Takeda Pharmaceutical Co. 5.11%, Canon Inc. 4.67%, Honda Motor Co. 4.09%, and Mitsui and Company Ltd. 3.41%.

Other ETFs that will likely also see action as investors continue to migrate back into Japan equity investments from an exposure standpoint include DFJ (WisdomTree Japan Small Cap Dividend, Expense Ratio 0.58%), NKY (MAXIS Nikkei 225, Expense Ratio 0.50%), ITF (iShares S&P/TOPIX 150, Expense Ratio 0.50%), and JSC (SPDR Russell/Nomura Small Cap Japan, Expense Ratio 0.55%).

WisdomTree Japan Hedged Equity


For more information on Street One ETF research and ETF trade execution/liquidity services, contact Paul Weisbruch at pweisbruch@streetonefinancial.com.