EWJV - EWJV ETF: Better To Wait For A Pullback

2024-07-25 21:39:11 ET

Summary

• EWJV provides low-cost access to 134 large and mid-cap Japanese stocks with value characteristics.
• Despite outperforming developed markets by over 2x during the past year, EWJV's valuations still look reasonable.
• The growth landscape does not look too alluring in Japan.
• Inflationary risks could grow as wage spirals leave a mark and the BOJ could be forced to hike rates, which would reflect well on Japanese banks that make up the largest chunk of this portfolio.
• However, relative to diversified Japanese stocks, EWJV looks overbought and the risk-reward on the standalone chart is not ideal.

Introduction

The iShares MSCI Japan Value ETF ( EWJV ) is a $2.6bn sized product that provides low-cost access (an expense ratio of only 0.15%) to 134 large and mid-cap Japanese stocks that exhibit value characteristics....

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