Best way to buy into the Japanese stock market

Article Excerpt

ISHARES MSCI JAPAN INDEX FUND $12.25 (American Exchange symbol EWJ; buy or sell through a broker) is an exchange-traded mutual fund that tries to match the return of the MSCI Japan Index (Morgan Stanley Capital International Japan Index). The MSCI Japan Index is a benchmark for Japanese equity performance. The iShares Japan Index Fund charges a fee of 0.59% of assets. The fund’s top holdings are: Toyota Motor at 5.0%; Mitsubishi UFJ Financial Group, 3.2%; Canon Inc., 2.1%; Nintendo Co., 2.0%; Sumitomo Mitsui Financial, 2.0%; Honda Motor, 1.9%; Mizuho Financial Group, 1.8%; Sony Corporation, 1.8%; Takeda Pharmaceutical, 1.7%; Matsushita Electric Industrial, 1.7%; and Mitsubishi Corp., 1.7%. Japanese stock markets remain volatile along with global markets. However, overall, we think that Japan’s economy will keep growing and push stock prices up. We see iShares MSCI Japan Index Fund as a good way for safety-conscious investors to buy into the Japanese stock market. Investors should keep their Japanese exposure under 10%, however. The fund is a..