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DXJ - ETF AI Analysis
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WisdomTree Japan Hedged Equity Fund (DXJ)
Rating:70Outperform
Price Target:―
Positive Factors
Strong Top Holdings
Several of the largest positions, such as Mitsubishi and Nintendo, have delivered strong year-to-date gains, supporting the fund’s overall performance.
Sector Diversification
The ETF is spread across multiple sectors, including Industrials, Consumer Cyclical, and Financials, reducing reliance on any single industry.
Moderate Expense Ratio
The fund’s expense ratio is relatively low compared to actively managed funds, making it cost-efficient for investors.
Negative Factors
Geographic Concentration
The ETF is heavily focused on Japan, with over 93% exposure, limiting diversification across global markets.
Mixed Performance in Top Holdings
Some key holdings, like Toyota Motor, have underperformed year-to-date, which could drag on overall returns.
Limited Defensive Exposure
Sectors like Utilities and Consumer Defensive have minimal representation, which may leave the fund vulnerable during market downturns.
DXJ vs. SPDR S&P 500 ETF (SPY)
AUM4.97B
RegionAsia-Pacific
Expense Ratio0.48%
Beta0.91
IssuerWisdomTree
Inception DateJun 16, 2006
Dividend Yield3.03%
Asset ClassEquity
Index TrackedWisdomTree Japan Hedged Equity Index
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume433,033
30 Day Avg. Volume535,475
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
156.74Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering430
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
DXJ Summary
The WisdomTree Japan Hedged Equity Fund (DXJ) is an ETF that lets investors invest in Japanese companies while reducing the risk of currency fluctuations between the yen and the U.S. dollar. It includes a mix of large and small companies across sectors like industrials, consumer goods, and technology. Well-known companies in the fund include Toyota Motor and Mitsubishi UFJ Financial Group. This ETF could be a good choice for someone looking to diversify their portfolio with exposure to Japan's economy. However, new investors should know that the fund’s performance depends heavily on Japan’s market conditions, which can be unpredictable.
How much will it cost me?The WisdomTree Japan Hedged Equity Fund (DXJ) has an expense ratio of 0.48%, meaning you’ll pay $4.80 per year for every $1,000 invested. This cost is slightly higher than average for ETFs because it is actively managed and includes a currency hedging strategy, which adds complexity and management effort.
What would affect this ETF?DXJ could benefit from Japan's economic growth, driven by advancements in technology and strong performance in industrial and consumer cyclical sectors, as well as its currency hedging strategy that protects against yen fluctuations. However, potential risks include global economic slowdowns, regulatory changes in Japan, or challenges in key industries like automotive and finance, which are heavily represented in its top holdings. Additionally, shifts in interest rates or trade policies could impact the fund's performance.
DXJ Top 10 Holdings
The WisdomTree Japan Hedged Equity Fund (DXJ) leans heavily on industrials and financials, with names like Toyota Motor and Sumitomo Mitsui Financial Group driving steady performance thanks to strong fundamentals and bullish momentum. However, Mitsubishi and Nippon Telegraph and Telephone have been lagging, with weak technical signals holding back gains. The fund’s focus on Japan provides a concentrated exposure to Asia-Pacific markets, but its reliance on cyclical sectors like consumer discretionary and financials means it could face mixed results if economic conditions shift. Overall, DXJ offers a balanced yet sector-heavy approach to Japan’s equity market.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| Toyota Motor | 5.36% | $266.15M | ¥44.63T | 24.66% | 80 Outperform | |
| Mitsubishi UFJ Financial Group | 4.63% | $229.96M | ¥27.39T | 41.05% | 76 Outperform | |
| Sumitomo Mitsui Financial Group | 3.39% | $168.34M | ¥19.31T | 38.94% | 77 Outperform | |
| Tokio Marine Holdings | 2.80% | $138.84M | ¥11.33T | 10.74% | 66 Neutral | |
| Nippon Telegraph and Telephone | 2.61% | $129.34M | ¥13.38T | 2.42% | 73 Outperform | |
| Japan Tobacco | 2.51% | $124.77M | ¥10.25T | 39.68% | 75 Outperform | |
| Mizuho Financial Group | 2.36% | $117.05M | ¥13.98T | 45.04% | 77 Outperform | |
| Mitsubishi | 2.26% | $112.09M | ¥13.71T | 44.65% | 60 Neutral | |
| Mitsui & Co | 2.00% | $99.25M | ¥12.93T | 49.00% | 74 Outperform | |
| Honda Motor Co | 1.98% | $98.24M | ¥6.36T | 14.03% | 63 Neutral |
DXJ Technical Analysis
Positive
―
Price Trends
137.34
Positive
132.09
Positive
121.09
Positive
Market Momentum
1.86
Negative
63.97
Neutral
62.71
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For DXJ, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 141.35, equal to the 50-day MA of 137.34, and equal to the 200-day MA of 121.09, indicating a bullish trend. The MACD of 1.86 indicates Negative momentum. The RSI at 63.97 is Neutral, neither overbought nor oversold. The STOCH value of 62.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DXJ.
DXJ Peer Comparison
Comparison Results
Performance Comparison
DXJ
WisdomTree Japan Hedged Equity Fund
144.09
36.97
34.51%
EWJ
iShares MSCI Japan ETF
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―
―
BBJP
JPMorgan BetaBuilders Japan ETF
―
―
―
FLJP
Franklin FTSE Japan ETF
―
―
―
DBJP
Xtrackers MSCI Japan Hedged Equity ETF
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―
―
FJP
First Trust Japan AlphaDEX Fund
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―
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Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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