- In the 2010s, Japan was consistently underperforming the G7 group, the overall advanced economies cohort, and the U.S.
- However, 2020 was a banner year for its stock market. The Nikkei 225 Stock Average ended the year on an up note with a 16% gain.
- EWJ is nicely diversified, overweight in industrials, with shares of Toyota being the largest asset.
- I like the fund's sector mix, a 19.2 P/E, and the potential to benefit from the recovery of the economy in 2021.
- But as Japan's long-term growth prospects are bleak, I prefer to remain on the sidelines.
For further details see:
EWJ Is Inexpensive, But Upside Is Questionable