EWJ VS DXJ: A Comprehensive Comparison of ETFs
4 min read
By Beqa Bumbeishvili, ETF Insider

EWJ VS DXJ: A Comprehensive Comparison of ETFs

Exchange-Traded Funds (ETFs) play a crucial role in modern investment strategies, offering investors diverse exposure to different markets and sectors. In this article, we will conduct an in-depth comparison between two prominent ETFs: EWJ (iShares MSCI Japan ETF) and DXJ (WisdomTree Japan Hedged Equity Fund). We'll explore their tickers, full names, issuers, sectors, top holdings, capitalization, investment strategies, tracking methods, and exposure, helping investors understand the unique features of these ETFs.

EWJ VS DXJ: Overview

EWJ and DXJ are both ETFs that focus on Japanese equities, but they have distinct approaches. EWJ aims to track the MSCI Japan Index, providing exposure to a broad range of Japanese companies. On the other hand, DXJ employs a currency-hedging strategy to mitigate the impact of fluctuations between the Japanese yen and the U.S. dollar, potentially offering a more stable return for investors in different currency markets.

EWJ VS DXJ: Sectors and Top Holdings

The sector allocation within EWJ and DXJ can significantly impact their performance. EWJ's holdings encompass various sectors, including industrials, technology, and consumer goods. DXJ, with its currency-hedging approach, may have a different distribution among sectors due to its focus on currency risk management. Exploring the sectors and top holdings can help investors gauge the potential for returns and risks within these ETFs.

EWJ overlap EWJ VS DXJ: A Comprehensive Comparison of ETFsEWJ overlap EWJ VS DXJ: A Comprehensive Comparison of ETFs

EWJ VS DXJ: Capitalization and Investment Strategy

Both EWJ and DXJ offer exposure to Japanese equities, but their investment strategies differ. EWJ, being an unhedged ETF, reflects the performance of Japanese stocks without currency protection. DXJ, with its currency-hedging strategy, seeks to provide a more stable return by addressing the impact of currency fluctuations. Understanding their strategies and capitalization can assist investors in aligning their choices with their risk tolerance and investment objectives.

EWJ VS DXJ: Tracking and Exposure

EWJ and DXJ utilize different methods to achieve their investment goals. EWJ tracks the performance of the MSCI Japan Index, allowing investors to gain exposure to a broad market representation. DXJ, besides tracking Japanese equities, also employs currency-hedging techniques to manage currency risk, which can be crucial for international investors. Evaluating their tracking methodologies and exposure can aid investors in selecting the ETF that best matches their desired exposure and risk profile.

Conclusion

EWJ and DXJ present distinct approaches to investing in the Japanese equity market, catering to different investor preferences and risk profiles. For those seeking a comprehensive understanding of these ETFs, including insights into their holdings, correlations, and overlaps, ETF Insider offers a valuable tool. Through its user-friendly app, investors can access detailed information about these and other financial instruments, empowering them to make informed decisions.

Disclaimer: This article is for informational purposes only and does not provide investment advisory services.

Sources:

EWJ ETF issuer
EWJ ETF official page

EWJ quote and analysis

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