JPXN VS HEWJ: A Comprehensive Comparison of ETFs
Exchange-Traded Funds (ETFs) have transformed the investment landscape, providing investors with efficient and diversified exposure to various markets and sectors. In this article, we will conduct a thorough comparison between two prominent ETFs: JPXN (iShares JPX-Nikkei 400 ETF) and HEWJ (iShares Currency Hedged MSCI Japan ETF). We'll delve into key aspects such as tickers, full names, issuers, sectors, top holdings, capitalization, strategy, tracking, and exposure.
JPXN VS HEWJ: Overview
JPXN and HEWJ are distinct ETFs offering exposure to the Japanese market with different strategies. JPXN tracks the JPX-Nikkei 400 Index, which includes high-quality Japanese companies based on return on equity (ROE), operating profit, and market capitalization. HEWJ, on the other hand, focuses on hedging currency risk for U.S. investors by investing in Japanese equities while mitigating the impact of currency fluctuations.
JPXN VS HEWJ: Sectors and Top Holdings
JPXN's underlying index ensures a diverse sectoral representation, including industries like technology, finance, healthcare, and consumer goods. Top holdings may include companies like Sony, Toyota, and SoftBank. In contrast, HEWJ's sector exposure aligns with the broader Japanese equity market, with companies spanning various sectors. Understanding the sectors and top holdings aids investors in gauging the potential risk and reward of each ETF.
JPXN overlap JPXN VS HEWJ: A Comprehensive Comparison of ETFs
JPXN VS HEWJ: Capitalization and Strategy
JPXN boasts a substantial asset under management (AUM) due to its focus on high-quality Japanese companies. Its strategy emphasizes companies with strong financial performance. HEWJ's strategy primarily revolves around currency hedging to mitigate the impact of exchange rate fluctuations, which can affect returns for U.S.-based investors. The difference in capitalization and strategy between these ETFs can influence their performance and risk characteristics.
JPXN VS HEWJ: Tracking and Exposure
JPXN's tracking methodology aims to mirror the performance of the JPX-Nikkei 400 Index, allowing investors to gain exposure to a portfolio of high-quality Japanese companies. HEWJ's tracking involves hedging the Japanese yen's currency risk against the U.S. dollar, providing a currency-hedged approach to investing in Japanese equities. Understanding these tracking methods and exposure strategies helps investors align their choices with their investment objectives.
Conclusion
JPXN and HEWJ cater to different investment preferences within the Japanese market. The former focuses on quality and performance, while the latter addresses currency risk through hedging. For deeper insights into their holdings, correlations, overlaps, and more, ETF Insider offers a valuable resource. With its user-friendly app, investors can access comprehensive information about these ETFs and other financial instruments.
Disclaimer: This article does not provide any investment advisory services.
Sources:
iShares. (n.d.). JPXN iShares JPX-Nikkei 400 ETF. Retrieved from [link]
iShares. (n.d.). HEWJ iShares Currency Hedged MSCI Japan ETF. Retrieved from [link]
JPXN ETF issuer
JPXN ETF official page
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