Xtrackers MSCI Japan Hedged Equity ETF
DBJP

$70.50

2.61%

Market Cap: $434M

0

Funds holding %

of 6,710 funds

–

Analysts bullish %

Fund manager confidence

Based on 2024 Q2 SEC filings by fund managers ($100M+ AUM)

125% more repeat investments, than reductions

Existing positions increased: 27 | Existing positions reduced: 12

83% more first-time investments, than exits

New positions opened: 11 | Existing positions closed: 6

18% more capital invested

Capital invested by funds: $269M [Q1] → $317M (+$48.8M) [Q2]

8% more funds holding

Funds holding: 59 [Q1] → 64 (+5) [Q2]

4.86% more ownership

Funds ownership: 69.03% [Q1] → 73.88% (+4.86%) [Q2]

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Research analyst outlook

We haven’t received any recent analyst ratings for DBJP.

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Financial journalist opinion

Japan: Hotter Than Expected Inflation, Output Rebound Should Support The BoJ's Policy Normalization

Today's data were a mixed bag, but the Bank of Japan will pay more attention to the sharp rise in Tokyo's inflation. Tokyo consumer prices rose more than expected to 2.6% YoY (vs 2.2% in July, 2.3% market consensus).

Japan: Hotter Than Expected Inflation, Output Rebound Should Support The BoJ's Policy Normalization

DBJP: Large Cap ETF Is Export Led, Disadvantaged On Yen Rally

The Yen hedge has not been in holders' favor lately as the currency has rallied. Importantly, the Japanese indices themselves are negatively correlated to the Yen as large cap stocks have large foreign markets, with automotive as an example. The generally export-led economy doesn't benefit massively from a stronger Yen, although domestically it might as the Yen declines have become quite extreme.

DBJP: Large Cap ETF Is Export Led, Disadvantaged On Yen Rally

BoJ Hikes By 25 Bps And Starts QT: Too Little Too Late, But In Right Direction To Prop Up The Plunging Yen

The “real” policy rate is massively negative, with the new policy rate of 0.25% far below Core CPI of 2.6%. When QT reaches about ¥3 trillion per month in 2026, it would represent a reduction of its JGB holdings of about 0.5% per month.

BoJ Hikes By 25 Bps And Starts QT: Too Little Too Late, But In Right Direction To Prop Up The Plunging Yen

Escape Velocity: Japan's Drift Toward Sustained Inflation

Japan has been struggling for some time to generate enough velocity in inflation to escape the gravitational pull of deflation. The story for the rest of 2024 and into 2025 is now centered on whether inflation will be sustained at the BOJ's 2% target.

Escape Velocity: Japan's Drift Toward Sustained Inflation

What's The Next Step For The Bank of Japan?

In March, the Bank of Japan abolished its 8-year-old negative interest rate policy, hiking rates for the first time in 17 years by raising its benchmark rate to 0-0.1%. To combat inflation while also avoiding an excessive surge in interest payments, the BOJ is considering passive quantitative tightening.

What's The Next Step For The Bank of Japan?

Mixed Japanese Data Supports BoJ's Policy Normalization

We'd rather downplay the weaker-than-expected manufacturing data and focus on a solid recovery in retail sales and a reacceleration in inflation, which will be welcomed by the Bank of Japan. Inflation has been quite choppy due to various government programmes and utility prices.

Mixed Japanese Data Supports BoJ's Policy Normalization

DBJP: Currency Tailwinds Receding And Valuations Normalizing (Ratings Downgrade)

The Xtrackers MSCI Japan Hedged Equity ETF has outperformed the S&P 500 Index, returning 37% compared to the S&P 500's 26%. The depreciating Yen that has boosted DBJP returns may turn neutral or act as a headwind in the coming months, making further gains harder to come by. Japanese equity valuations are no longer cheap on an absolute basis, suggesting a period of consolidation for DBJP.

DBJP: Currency Tailwinds Receding And Valuations Normalizing (Ratings Downgrade)

What Has Led To Japan's Come-Back?

By end-April 2024, Japanese equities had outperformed the FTSE All-World index over 12 months and in the year to date. Japan has undertaken significant structural corporate reforms in recent years.

What Has Led To Japan's Come-Back?

Weak Yen Unlikely To End Japan's Rally

A weak yen is unlikely to end the positive momentum in Japanese equities. The drivers of the recent rally remain, so we stay overweight Japanese stocks.

Weak Yen Unlikely To End Japan's Rally

Japanese Industrial Production Strengthens As Retail Sales Disappoint

March activity data was a mixed bag in Japan. Weak manufacturing weighed on growth in the first quarter of the year.

Japanese Industrial Production Strengthens As Retail Sales Disappoint

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