What index does EWJ track?
5 min read
By Ron Koren, ETF Insider

What index does EWJ track?

Understanding the underlying index that an exchange-traded fund (ETF) aims to track is essential for investors seeking exposure to specific markets or sectors. In the case of EWJ, it is important to know the index it follows. EWJ represents the iShares MSCI Japan ETF, which aims to track the performance of the MSCI Japan Index. In this article, we will explore the index that EWJ tracks and provide insights into the potential benefits of investing in Japanese equities through this ETF. By understanding the index associated with EWJ, investors can evaluate the potential risks and rewards of investing in Japanese stocks and consider incorporating EWJ into their investment portfolios.

EWJ ETFs

Exchange-traded funds (ETFs) have become increasingly popular among investors due to their diversified nature and ease of trading. When it comes to the EWJ ETF, it is essential to understand the index it tracks. The EWJ ETF is designed to track the performance of the MSCI Japan Index. This index is a widely recognized benchmark that represents the performance of large and mid-cap Japanese stocks. By investing in the EWJ ETF, investors gain exposure to a broad range of Japanese companies and can participate in the overall performance of the Japanese stock market.

EWJ Dividend Yield

Dividend yield is an important consideration for investors looking to generate income from their investments. When it comes to the EWJ ETF, investors often wonder about its dividend yield. The EWJ ETF is not specifically designed to provide high dividend yields. Instead, it focuses on tracking the performance of the MSCI Japan Index. The dividend yield of the EWJ ETF is dependent on the dividend payments made by the underlying Japanese stocks within the index. Investors should be aware that the dividend yield of the EWJ ETF may vary over time based on the dividend policies of the individual companies included in the index.

EWJ overlap What index does EWJ track?EWJ overlap What index does EWJ track?

EWJ Gold Exposure

Gold is often considered a safe haven asset and a hedge against inflation. Some investors may wonder if the EWJ ETF provides exposure to gold. However, it's important to note that the EWJ ETF is focused on tracking the performance of the MSCI Japan Index, which consists of Japanese stocks. Therefore, the EWJ ETF does not directly provide exposure to gold. Investors interested in gaining exposure to gold can explore other investment options such as gold ETFs or gold mining stocks.

EWJ Aerospace and Defense sector

Investors who are interested in aerospace and defense may wonder if the EWJ ETF includes companies from this sector. However, the EWJ ETF primarily focuses on tracking the performance of the MSCI Japan Index, which consists of Japanese stocks. As a result, it does not specifically target aerospace and defense companies. Investors looking for exposure to the aerospace and defense sector may need to explore other ETFs or investment vehicles that specifically target this industry.

In conclusion, the EWJ ETF tracks the performance of the MSCI Japan Index, providing investors with exposure to a broad range of large and mid-cap Japanese stocks. While it does not focus on dividend yield, gold exposure, or aerospace and defense companies, investors can explore other investment options to meet their specific objectives in these areas. It's important for investors to conduct thorough research and consider their individual investment goals before making any investment decisions.

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

Source 1: EWJ issuer website Source 2: Reuters article about EWJ

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FAQ

  • Is EWJ currency hedged?

    EWJ, or the iShares MSCI Japan ETF, offers both currency-hedged and non-currency-hedged versions. The currency-hedged version aims to mitigate the impact of currency fluctuations between the Japanese yen and the investor's domestic currency.

  • What is EWJ?

    EWJ is an exchange-traded fund that provides investors with exposure to Japanese equities. It aims to track the performance of the MSCI Japan Index, which represents a broad range of large and mid-cap companies in Japan.

  • Does EWJ pay dividends?

    Yes, EWJ pays dividends. As an ETF focused on Japanese equities, it collects dividend payments from the underlying stocks held in its portfolio and distributes a portion of those payments to investors as dividends.

  • What index does EWJ track?

    EWJ tracks the performance of the MSCI Japan Index. This index is designed to reflect the performance of the Japanese equity market by including companies from various sectors in Japan.

  • Can I use EWJ to gain exposure to specific sectors in Japan?

    EWJ provides exposure to a broad range of companies in Japan across various sectors. While it offers diversification within the Japanese market, it does not allow investors to specifically target exposure to specific sectors. If you seek sector-specific exposure in Japan, you may consider alternative investment options, such as sector-specific ETFs or mutual funds focused on Japanese sectors.