Japan ETF (EWJ) Hits New 52-Week High

Investors seeking momentum may have iShares MSCI Japan ETF EWJ on radar now. The fund recently hit a new 52-week high. Shares of EWJ are up approximately 16.2% from the 52-week low of $48.79/share. 

 

But could there be more gains ahead for this ETF? Let’s take a look at the fund and the near-term outlook to get a better idea of where it might be headed. 

 

EWJ in Focus

 

EWJ focuses on providing exposure to the Japanese equity market. It charges 48 basis points in fee per year and has top holdings in Toyota Motor Corp, Mitsubishi UFJ Financial Group Inc and Softbank Group Corp with 4.7%, 2.3% and 2.1% allocation, respectively (as of Oct 11, 2017) (see all Asia-Pacific (Developed) ETFs here). 

 

Why the Move?

 

Lately, Japan’s equity market has been in the spotlight. The country’s benchmark stock index Nikkei soared to a 21-year high owing to positive economic data, relatively low valuations, strong earnings and improved sentiment in the United States. Japanese companies have been performing well on stronger exports and business confidence. Moreover, The International Monetary Fund upgraded its forecast for Japan’s growth rate to 1.5% in 2017 compared with its July forecast of 1.3% expansion as exports gain momentum.

 

More Gains Ahead? 

 

Currently, EWJ has a Zacks ETF Rank #3 (Hold) with a Medium Risk outlook, so it is hard to get a handle on its returns. However, the ETF has a weighted alpha of 15.9. So, there is a promising outlook ahead for those who want to ride this surging ETF a shade further. 

 

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Teaser: Japan ETF hits a new 52-week high amid Nikkei rally and global market optimism.

Investors seeking momentum may have iShares MSCI Japan ETF (EWJ) on radar now. The fund recently hit a new 52-week high. Shares of EWJ are up approximately 16.2% from the 52-week low of $48.79/share. 

But could there be more gains ahead for this ETF? Let’s take a look at the fund and the near-term outlook to get a better idea of where it might be headed. 

EWJ in Focus

EWJ focuses on providing exposure to the Japanese equity market. It charges 48 basis points in fee per year and has top holdings in Toyota Motor Corp, Mitsubishi UFJ Financial Group Inc and Softbank Group Corp with 4.7%, 2.3% and 2.1% allocation, respectively (as of Oct 11, 2017) (see all Asia-Pacific (Developed) ETFs here). 

Why the Move?

Lately, Japan’s equity market has been in the spotlight. The country’s benchmark stock index Nikkei soared to a 21-year high owing to positive economic data, relatively low valuations, strong earnings and improved sentiment in the United States. Japanese companies have been performing well on stronger exports and business confidence. Moreover, The International Monetary Fund upgraded its forecast for Japan’s growth rate to 1.5% in 2017 compared with its July forecast of 1.3% expansion as exports gain momentum.

More Gains Ahead? 

Currently, EWJ has a Zacks ETF Rank #3 (Hold) with a Medium Risk outlook, so it is hard to get a handle on its returns. However, the ETF has a weighted alpha of 15.9. So, there is a promising outlook ahead for those who want to ride this surging ETF a shade further. 

Want key ETF info delivered straight to your inbox?

 

Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>

 

 

 

 

 

 

 

 

 

 

 

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ISHARS-JAPAN (EWJ): ETF Research Reports
 
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