Japanese ETFs for 2013 for Big ROI

Japan Rising Sun

Japanese stocks are all the rage in 2013.  Go with these ETFs and buy multiple companies from Japan with less risk.

If you are looking to invest in Japanese ETFs then you should be playing the iShares MSCI Japan Index Fund (EWJ), Precidian MAXIS Nikkei 225 Index ETF (NKY), SPDR Russell/Nomura PRIME Japan ETF (JPP), and the winner thus far in 2013 the WisdomTree Japan Hedged Equity Fund (DXJ).

These Japanese fueled long ETFs are not all created equal.  Take a look at the performance since October between these 4 ETFs, the clear winner is WisdomTree's Japan Hedged Equity Fund (DXJ).  The DXJ blows away the other three, it's increased 23%.  The DXJ is up double from the others when looking back since Oct. and it closed at a new 12 month high Friday (Jan 11th). 

Should you select the DXJ you won't be the only trader.  Via IndexUniverse.com, the DXJ is very popular with investors:

Since Nov. 30, the fund (DXJ) has attracted net inflows of more than $673.5 million in new investor dollars—which includes $236.7 million so far in 2013. The yen has weakened by about 12 percent in the past three months.

japan etf performance

How much do these ETFs cost per share?

  • iShares MSCI Japan Index (EWJ) is trading at $9.88 and its shares are now -3.34% below its 52-week high.
  • MAXIS Nikkei 225 Index ETF (NKY) is trading at $14.60 and its shares are now -1.71% below its 52-week high.
  • SPDR Russell/Nomura PRIME Japan (JPP) is trading at $38.16 and its shares are now -3.51% below its 52-week high.
  • WisdomTree Japan Hedged Equity (DXJ) is trading at $38.53 and its shares are less than 1% from its 52-week high.

 

The DXJ consists of the following top holdings as of 01/11/2013

Name Weight
1. Mitsubishi UFJ Financial Group 5.50%
2. Canon Inc 4.92%
3. Takeda Pharmaceutical Co Ltd 4.83%
4. Honda Motor Co Ltd 4.17%
5. Mitsui & Co Ltd 3.55%
6. Japan Tobacco Inc 3.11%
7. Nissan Motor Co Ltd 2.99%
8. Toyota Motor Corp 2.78%
9. Astellas Pharma Inc 2.33%
10. Itochu Corp 2.20%