Exchange-Traded Funds (ETFs) have redefined the way investors approach the financial markets, offering diverse exposure to various sectors and regions. In this article, we'll conduct an in-depth comparison between two prominent ETFs: EWJ (iShares MSCI Japan ETF) and JPXN (iShares JPX-Nikkei 400 ETF). This analysis will cover essential aspects such as ETF tickers, full names, issuers, sectors, top holdings, capitalization, investment strategy, tracking methods, and market exposure.
EWJ and JPXN represent distinct investment opportunities within the Japanese equity market. EWJ seeks to mirror the performance of the MSCI Japan Index, which encompasses a broad range of Japanese companies. On the other hand, JPXN is specifically designed to track the JPX-Nikkei 400 Index, focusing on high-quality Japanese stocks with strong governance and profitability metrics. The differences in index selection and criteria lead to varying investment outcomes that warrant further exploration.
When evaluating EWJ, it's important to consider its exposure to various sectors within the Japanese economy. The ETF's portfolio includes companies from industries such as technology, automotive, finance, and more. In contrast, JPXN concentrates on top-performing Japanese companies based on factors like return on equity and market capitalization. This results in a portfolio composed of high-quality businesses that have demonstrated sound financial performance.
EWJ overlap EWJ VS JPXN: A Comprehensive Comparison of ETFs
EWJ boasts a substantial asset under management (AUM), showcasing its popularity among investors seeking Japanese market exposure. Its investment strategy revolves around tracking the broad Japanese equity market. On the other hand, JPXN's strategy focuses on selecting companies with solid fundamentals and corporate governance practices. This strategy aims to capture potential upside while managing risks associated with investing in Japanese equities.
EWJ and JPXN differ in their tracking methodologies and resulting market exposure. EWJ seeks to replicate the performance of the MSCI Japan Index through direct investment in its constituent stocks. In contrast, JPXN tracks the JPX-Nikkei 400 Index, which comprises companies that meet specific quality and liquidity criteria. As a result, JPXN offers exposure to a subset of the broader Japanese equity market, emphasizing quality and performance metrics.
EWJ and JPXN present investors with distinct ways to tap into the Japanese equity market. Whether you're drawn to the broader exposure of EWJ or the focused quality-driven approach of JPXN, both ETFs offer unique opportunities. To gain deeper insights into holdings, correlations, overlaps, and more, ETF insider serves as an invaluable resource. With its user-friendly app, investors can access comprehensive information about these ETFs and other financial instruments.
Disclaimer: This article does not provide investment advisory services.
Sources:
iShares. (n.d.). iShares MSCI Japan ETF (EWJ). Retrieved from [insert link]
iShares. (n.d.). iShares JPX-Nikkei 400 ETF (JPXN). Retrieved from [insert link]
EWJ ETF issuer
EWJ ETF official page
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