The Guggenheim CurrencyShares Japanese (NYSE: FXY) is up 19 percent year-to-date, making it one of the best-performing currency exchange-traded funds. So it is not surprising that as the yen surges amid safe-haven demand, Japanese stocks are struggling.
In the United States, ETFs are designed to benefit when the dollar rises against the yen, including the WisdomTree Japan Hedged Equity Fund (NYSE: DXJ), are being repudiated by investors. But, just as naysayers are apt to say currency hedged ETFs were too much of a good thing when the dollar was soaring, perhaps now is the time to revisit DXJ and friends when these funds are out of favor.
Revisiting DXJ
On the surface, many investors might criticize the lack of inflation, weak macro data and Japan’s corporate exposure to emerging markets as good reasons why Japan’s equity market should have played catch up. However, investors ...
/www.benzinga.com/trading-ideas/long-ideas/16/07/8196852/down-but-not-out-japan-etfs-offer-value alt=Down But Not Out: Japan ETFs Offer Value>Full story available on Benzinga.com
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