What does Xtrackers MSCI Japan Hedged Equity ETF do?

Xtrackers MSCI Japan Hedged Equity ETF (NYSEARCA:DBJP) focuses on providing investors with direct exposure to the Japanese equity market while mitigating exposure to fluctuations between the value of the Japanese yen and the U.S. dollar. This exchange-traded fund (ETF) accomplishes its goals by investing in a range of securities that aim to track the performance of the MSCI Japan US Dollar Hedged Index. By doing so, it seeks to offer returns that closely correspond to the total returns of the Japanese equity markets, adjusted for the risks and opportunities presented by currency movements. Xtrackers MSCI Japan Hedged Equity ETF is designed for investors looking to gain Japanese equity exposure in their investment portfolio while minimizing the currency risk typically associated with international investments.
Xtrackers MSCI Japan Hedged Equity ETF company media

Company Snapshot

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Ownership

Public
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Employees

3,709
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Sector

ETF
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Head Office

New York, United States
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Year Founded

2011

What does Xtrackers MSCI Japan Hedged Equity ETF specialise in?

/Equity Investment /Currency Hedging /Index Tracking /Japanese Market /Risk Management /Investment Diversification

What are the products and/or services of Xtrackers MSCI Japan Hedged Equity ETF?

Overview of Xtrackers MSCI Japan Hedged Equity ETF offerings
Exposure to Japanese Stocks: DBJP invests in a basket of stocks of companies located in Japan. This provides indirect exposure to the performance of these companies.
Currency Hedging: DBJP uses investment strategies to hedge against fluctuations between the Japanese Yen and the US Dollar. This can be achieved through various methods like futures contracts or currency swaps. The goal is to isolate the performance of the underlying Japanese companies and minimize the influence of currency exchange rates on the overall ETF value for US dollar investors.
Diversification Within Japan: By holding a basket of companies from various sectors of the Japanese economy, DBJP offers diversification within this specific market, reducing concentration risk on any single company.
Passive Management: DBJP likely tracks an index that reflects the performance of Japanese equities with currency hedging applied. The holdings are automatically adjusted to reflect the index composition, potentially resulting in lower fees compared to actively managed Japanese equity funds.
Potential for Capital Appreciation: The value of DBJP can potentially grow over time as the underlying Japanese companies' stock prices increase. However, the overall performance may also be influenced by factors affecting the Japanese economy.
Reduced Currency Fluctuation Risk: Compared to a non-hedged Japanese stock ETF, DBJP aims to reduce the volatility caused by fluctuations between the Japanese Yen and the US Dollar. This can be beneficial for US dollar investors seeking exposure to the Japanese stock market without excessive currency risk.