EWJ - EWJV: A Value Tilted Japan Fund That Works

2024-05-01 18:23:12 ET

Summary

• The long-term case for investing in Japan's stock market may still be strong, despite short-term concerns about the Yen's volatility.
• The iShares MSCI Japan Value ETF is a value-driven option for investors interested in Japanese stocks trading at discounts to their intrinsic worth.
• The EWJV ETF's portfolio consists of well-established companies like Toyota, Mitsubishi UFJ Financial Group, and Mitsubishi Corp, with a focus on undervalued businesses with solid fundamentals.

Japan has been the talk of the global equity town for the past year or so, as momentum took hold in a stock market that was written off for decades. Corporate reform, and notable allocations into the country by investors like Warren Buffett, caused a chase into those stocks. Now, to be clear - I'm skeptical short-term that momentum in Japan's markets can continue, as I expect the yen's volatility will create meaningful problems and dislocations. Having said that, as is most often the case, crises rarely last....

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