{"id":133021,"date":"2023-06-08T03:39:09","date_gmt":"2023-06-08T03:39:09","guid":{"rendered":"https:\/\/fin2me.com\/?p=133021"},"modified":"2023-06-08T03:39:09","modified_gmt":"2023-06-08T03:39:09","slug":"japanese-etf-shines-as-countrys-stocks-are-embraced-by-investors-again","status":"publish","type":"post","link":"https:\/\/fin2me.com\/markets\/japanese-etf-shines-as-countrys-stocks-are-embraced-by-investors-again\/","title":{"rendered":"Japanese ETF Shines as Country’s Stocks Are Embraced by Investors Again"},"content":{"rendered":"
Amid widespread optimism among investors about Japan and Japanese stocks, sentiment toward the iShares MSCI Japan ETF (<\/strong>US:EWJ<\/strong>) <\/strong>is quite positive, according to readings\u00a0on Fintel\u2019s quant dashboards.<\/p>\n The exchange-traded fund, which has assets under management\u00a0of nearly $11 billion and is operated by the large U.S. investment manager BlackRock<\/strong>, is one of Wall Street’s most widely owned ETFs specializing in Japanese stocks.<\/p>\n Fund Sentiment on EWJ stock is 80.93 on Fintel’s proprietary model, which measures the extent to which major funds are accumulating the shares. For comparison, the $2 billion AUM\u00a0WisdomTree Japan Hedged Equity Fund (<\/strong>US:DXJ<\/strong>)<\/strong> scores 36.35. For investors, EWJ has an expense ratio of 0.50%, while DXJ charges 0.48%.<\/p>\n The exchange-traded fund also shows up on Fintel\u2019s Dividend Yield Screen, which finds all securities with a dividend yield greater than 4%.<\/p>\n Bullish Options Bets<\/strong><\/p>\n As far as options are concerned, the overall put\/call ratios on June 5, June 2, June 1, and May 31 were all either 0.30 or 0.31. That means that roughly 70% of the options on EWJ that have been bought are bullish call options, while only 30% are bearish put options.<\/p>\n Moreover, as of June 6, the put\/call ratios for options that expire on June 16 and July 21 are 0.07 and 0.04. That means that over 90% of the options that expire on those days are bullish call options.<\/p>\n Investors Optimistic on Japan<\/strong><\/p>\n Japan’s key stock gauge, the Nikkei 225 index<\/strong>, in May\u00a0reached its highest level since 1990, when the Japanese economy was roaring. As of June 6, the index had jumped nearly 25% in 2023. Meanwhile, the EWJ soared 29% between last Sept. 30 and June 6.<\/p>\n The celebrated American investor, Warren Buffett, in April reported that “he owned more stocks in Japan than in any other country besides the U.S.,” Investor’s Business Daily<\/em> noted. In 2020, Buffett bought shares in Japan’s five biggest investment banks, and he recently boosted his stakes in those names to 7.4%, from his original stakes of just over 5%.<\/p>\n Among the positive catalysts for Japanese stocks has been an increase in inflation in the country, which had for decades been plagued by extremely low and, at times, negative inflation.<\/p>\n That has changed in recent years, and inflation in the country is now trending around 3%-4%. Meanwhile, the weakening of Japan’s currency is helping the country’s large export sector, and its interest rates are staying low. Moreover, Buffett’s statement has drawn investors’ attention to the country’s stocks.<\/p>\n Familiar Names<\/strong><\/p>\n EWJ holds 238 companies in its portfolio. The two top components are very well-known companies — Toyota (<\/strong>US:TM<\/strong>) <\/strong>[4.34% of assets] and Sony (<\/strong>US:SNE<\/strong>)<\/strong> [3.56%].<\/p>\n Ranking third [3.83%] is a less-familar name,\u00a0Keyence (<\/strong>JP:6861<\/strong>)<\/strong>, which manufactures and markets automatic controlling equipment, measuring instruments and other electronic application equipment.<\/p>\n Global bank Mitsubishi UFJ Financial (<\/strong>JP:8306<\/strong>)<\/strong> is the fourth-biggest holding [2.32%], while Tokyo Electron (<\/strong>JP:8035<\/strong>)<\/strong> ranks fifth [1.86%].<\/p>\n This article originally appeared on Fintel<\/i><\/p>\n Sponsored: Find a Qualified Financial Advisor<\/b><\/p>\n Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.<\/p>\n