Skip to Content
scroll

Japan-Focussed ETFs

Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.

The Latest Q&A

Question asked

Japan-Focussed ETFs

Hi Market Matters Team! Do you have a view on prospects for the Japanese stock market? I have seen commentary a few times over the last few months stating that prospects for the Japanese economy and hence Japanese companies are good, with the move toward an end of the long-term deflationary doldrums there often cited. To put more of a point on my question, is there a Japanese-focussed ETF, readily accsessible to Australian investors, that you think has good prospects?

Answer

Hi,

Firstly its important to acknowledge that the Nikkei has already performed strongly post-COVID. Japan has indeed struggled with deflation but equities enjoyed the tailwind of negative bond yields for years, the BOJ hiked interest rates in July, from zero to 0.25% – the first hike in over 15-years! The move created a panic move across global financial markets as the “yen carry trade unwound”.

  • We are cautiously bullish the Nikkei ~38,000, our go-to ETF to play a bullish view would be the iShares MSCI Japan (IJP) – market cap. is $667mn and expense ratio 0.5%.
chart
image description
Japanese Nikkei 225 Index
image description

Relevant suggested news and content from the site

Back to top