Tap Japan’s top companies

Article Excerpt

ISHARES MSCI JAPAN INDEX FUND $54.35 (New York symbol EWJ; buy or sell through brokers; us.ishares.com) is an ETF that tries to match the return of the Morgan Stanley Capital International (MSCI) Japan Index. The fund’s top holdings include Toyota, 4.5%; Softbank, 2.6%; Sony Corp., 2.1%; Mitsubishi UFJ Financial, 1.8%; Keyence (sensors), 1.6%; Takeda Pharma, 1.5%; and Sumitomo Mitsui Financial, 1.4%. The ETF’s MER is 0.50%. In the long term, Japan faces a labour shortage as its population ages, and it remains closed to immigration. In the short term, the trade dispute between the U.S. and China—two of Japan’s biggest export markets—will likely slow economic growth. Despite these challenges, the Japanese economy remains sound. In addition, the high U.S. dollar is a big plus for its exports to that major market. iShares MSCI Japan Index Fund is a buy. buy…