
NYSEARCA:EWJ
This summary was created by AI, based on 2 opinions in the last 12 months.
Experts appear to favor iShares Japan ETF (EWJ-N), noting the current conditions in North American markets as overvalued. This has led to increased interest in foreign markets, particularly Japan, which is perceived to be in an uptrend supported by fiscal stimulus. One expert emphasizes the ETF's chart behavior, highlighting a series of breakouts that stabilize rather than rapidly escalate, which bodes well for sustainable growth. Another expert echoes this sentiment, observing that Japan's market has recently broken free from long-standing resistance and is now in a consolidated phase, making it an opportune time for entry. This suggests a strategic focus on Japan as a comparatively safer investment amid global uncertainties.
Invesing in the Japanese market, would you choose iShares Japan C$ Hedge ETF (CJP-T) or iShares Japan ETF (EWJ-N)? He would choose CJP because it is Canadian listed and a fundamental ETF. It is rebalanced and the selection is based on momentum and value criteria, total sales and price-to-book. This is based on the MSCI Japan index. He much prefers fundamental indexes versus straight MSCI indexes.
With Japan there is currency risk – they are actively working on devaluing the Yen. Forward earnings estimate is over 50%, valuation is 14 times. Export oriented and strong consumer sector. You will not be disappointed. Providing earnings estimates are achieved, if it goes up 10-15% over the next 3-4 months then the run is done and if not, then it won’t.
Japan has been out of favour for years and years. Tends to be counter cyclical. There is a currency war going on right now and they are pushing the yen down which he thinks will be good for Japanese exports. If he had to pick one global play that is probably not going to be affected if we have a turndown, it will probably be Japan. Auto manufacturing is the largest component, about 12%, of this ETF.
We have all been waiting decades to buy Japan and it looks like they now have someone there who has some idea of what they are doing and able to devalue the yen a little bit to stimulate the economy. You might want to wait for a bit of a pull back. Worth looking at. You could also look at Wisdomtree (DJX-US) which is hedged to the US$, which would eliminate currency risks.