iShares Japan ETF (EWJ)

An ETF for the Japanese market? This one is the clear choice. It is pretty attractive right now. Hedged against the local currency, but you still have exposure to the US$.

Has no problem with this, but wouldn’t be loading up on it. Perhaps 3% or 5%.

It is not hedged and is undervalued. They are cheap, lean and efficient in manufacturing.

A great ETF and just tracks the Japanese stock market. Very, very large. If you are going to play the Japanese market, this would certainly be one he would want to be in.

(Top Pick Dec 31/12, Up 25.86%) Underperformed Japanese stocks because of the currency risk. He forgot to hedge (DXJ-N). He thinks DXJ will work higher.

What ETF would you suggest for investing in Japan? Likes the iShares MSCI Japan (EWJ-N) although there are lots of other ETFs out there. This one has the major indices covered. Financials are about 20%, industrial/technology at around 15%. Most of his ETFs have veered towards the US, but also more towards Europe and the UK.

(A Top Pick Dec 31/12. Up 24.26%.) Thinks this will go higher. All support is at around $9.20. Japanese decided to stimulate by lowering the currency, which stimulates the export economy. It has broken out above a little resistance at $11.10. In a short-term chart, he sees an ascending triangle that is trying to break out again.

Huge. A way to play Japan. CJP is hedged and you might want to take a look at that.

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.

The Yen has topped and the falling Yen will be helpful to Japanese export. It is an underperformer so he wants to be there.