iShares MSCI Japan Index (EWJ)
iShares MSCI Japan
Some countries are being affected by the global slowdown
more than others. The iShares MSCI Japan Index (EWJ) is in the mist of a trend
downward that has not taken too many pauses. Begun at the beginning of June,
the index Exchange Traded Fund (ETF) has dropped 20% from 13.83 to 11.20 on
The ETF itself tries to mimic the
returns of the MSCI Japan Index through the ownership of stocks within the
index. With a very good 0.52% expense ratio, the ETF is an inexpensive way to
get exposure to the Japanese index. The annual turnover rate is a low 3% and
the dividend yield is 1.64% currently.
Holdings of the ETF
holds major Japanese companies Cannon, Hondo Motors, Mitsubishi, Mitsubishi
Financial Group, Mizuho Financial Group, Nintendo, Sony, Takedo Pharmaceutical,
and Toyota Motors to name the largest. The average price/earnings ratio of the
companies held in the ETF is 15.17.
financial stocks in the index’s top holdings, Mitsubishi Financial Group and
Mizuho Financial Group are experiencing the same issues that America
financials are dealing with, a credit crisis. The drag by these financials with
the additional commodity price declines are creating the downward pressure on
the index that could continue.