
NYSEARCA:EWJ
This summary was created by AI, based on 1 opinions in the last 12 months.
Experts are increasingly favoring the iShares Japan ETF (EWJ-N) as they shift focus from overheated North American markets to foreign opportunities, with Japan emerging as a significant contender. The ongoing fiscal stimulation in Japan is providing a solid foundation for growth. Observations of the ETF's chart show a pattern of breakouts followed by consolidation rather than extreme volatility, which some analysts view positively. This consistent performance suggests a stable upward trend rather than erratic movements, which has encouraged a gradual investment strategy. Overall, the sentiment around EWJ-N reflects confidence in Japan's economic recovery and market potential.
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.