Japan Equity

Japan equity mutual funds and ETFs own securities listed on the Tokyo... Japan equity mutual funds and ETFs own securities listed on the Tokyo Stock Exchange, the world’s 3rd largest by market capitalization. The Tokyo Stock Exchange includes the well-known Nikkei Index, composed of 225 companies, and the TOPIX index. The Japanese stock market is quite diversified, and includes many well-known conglomerates that operate in different industries. By sector, some of the largest exposures on the Japanese market are consumer discretionary, financials, industrials, and materials. Large constituents of the Nikkei include Mitsubishi, Sony, Hitachi, Honda Motor, and Toyota Motor. Japan is the world’s third largest economy by nominal GDP, coming in at US$4.4 trillion as of 2023. The country’s economy is export-oriented. Japan equity mutual funds and ETFs may be passively or actively managed. They may also leave currency exposure unhedged, or choose to protect the portfolio from swings in the value of the Yen. Investors are attracted to Japan mutual funds and ETFs because of the country’s stature as a stable, developed market economy. Japanese equities have also been seen as better value than many other countries, with solid dividend payouts as well. Japan equity mutual funds and ETFs are appropriate for conservative investors, although with China as a neighbor, geopolitical risk is worth watching. Last Updated: 12/27/2024 View more View less

Japan equity mutual funds and ETFs own securities listed on the Tokyo Stock Exchange, the world’s 3rd largest by market capitalization. The Tokyo Stock Exchange includes the well-known Nikkei Index, composed of 225... Japan equity mutual funds and ETFs own securities listed on the Tokyo Stock Exchange, the world’s 3rd largest by market capitalization. The Tokyo Stock Exchange includes the well-known Nikkei Index, composed of 225 companies, and the TOPIX index. The Japanese stock market is quite diversified, and includes many well-known conglomerates that operate in different industries. By sector, some of the largest exposures on the Japanese market are consumer discretionary, financials, industrials, and materials. Large constituents of the Nikkei include Mitsubishi, Sony, Hitachi, Honda Motor, and Toyota Motor. Japan is the world’s third largest economy by nominal GDP, coming in at US$4.4 trillion as of 2023. The country’s economy is export-oriented. Japan equity mutual funds and ETFs may be passively or actively managed. They may also leave currency exposure unhedged, or choose to protect the portfolio from swings in the value of the Yen. Investors are attracted to Japan mutual funds and ETFs because of the country’s stature as a stable, developed market economy. Japanese equities have also been seen as better value than many other countries, with solid dividend payouts as well. Japan equity mutual funds and ETFs are appropriate for conservative investors, although with China as a neighbor, geopolitical risk is worth watching. Last Updated: 12/27/2024 View more View less