ISHARES MSCI JAPAN INDEX FUND $9.06 (American Exchange symbol EWJ; buy or sell through brokers; us.ishares.com) is an exchange traded fund that tries to match the return of the Morgan Stanley Capital International (MSCI) Japan index.
The ETF’s top holdings include Toyota, 5.2%; Mitsubishi UFJ Financial, 2.8%; Honda Motor, 2.5%; Sumitomo Mitsui Financial, 2.0%; Takeda Pharmaceutical, 1.8%; Canon, 1.8%; Mizuho Financial Group, 1.8%; Fanuc Corp., 1.5%; Softbank Corp., 1.4%; and Japan Tobacco Inc., 1.3%.
The fund’s industry breakdown is as follows: Industrials, 20.6%; Consumer Discretionary, 19.1%; Financials, 18.5%; Information Technology, 11.1%; Consumer Staples, 7.2%; Health Care, 7.2%; Materials, 6.3%; Telecommunication Services, 4.5%; Utilities, 2.7%; and Energy, 1.6%.
iShares MSCI Japan Index Fund was launched on March 12, 1996. Its expense ratio is 0.51%.
Japan’s exports have slowed along with the global economy, and that’s hurting the country’s overall growth. As well, exports to China, and Chinese tourism in Japan, have fallen sharply due to the dispute between the two countries over ownership of the Senkaku/Diaoyu islands in the East China Sea.
Still, reconstruction spending in the wake of the March 2011 earthquake and tsunami is supporting the country’s economy. Japan will likely grow 2.0% this year, and its long-term outlook is positive.
iShares MSCI Japan Index Fund is a buy.
