DXJ - ETF AI Analysis

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WisdomTree Japan Hedged Equity Fund (DXJ)

Rating:70Neutral

Price Target:―

DXJ, the WisdomTree Japan Hedged Equity Fund, has a solid overall rating, reflecting a portfolio led by strong names like Toyota and major Japanese financial groups such as Mitsubishi UFJ and Mizuho, which benefit from robust financial performance, positive earnings calls, and generally supportive technical trends. These strengths are partly offset by weaker momentum or overvaluation concerns in holdings like Mitsubishi, Tokio Marine, and Takeda Pharmaceutical, and the fund’s focus on Japanese equities means investors are exposed to risks tied to Japan’s market and economic conditions.

Positive Factors

Strong Recent Performance

The ETF has shown solid gains over the past month and quarter, indicating positive recent momentum.

Leading Japanese Blue-Chip Holdings

Top positions in major Japanese companies, many with strong year-to-date performance, help support the fund’s returns.

Broad Sector Diversification Within Japan

Holdings spread across industrials, financials, consumer sectors, technology, and more help reduce the impact of weakness in any single industry.

Negative Factors

High Geographic Concentration in Japan

With the vast majority of assets in Japanese stocks, the fund is heavily exposed to the Japanese economy and market conditions.

Moderately High Expense Ratio

The fund’s expense ratio is higher than many low-cost index ETFs, which can slightly reduce net returns over time.

Mixed Performance Among Top Holdings

While many top positions are performing well, at least one major holding has shown weak year-to-date results, which can drag on overall performance.

DXJ vs. SPDR S&P 500 ETF (SPY)

AUM6.07B

RegionAsia-Pacific

Expense Ratio0.48%

Beta0.92

IssuerWisdomTree

Inception DateJun 16, 2006

Dividend Yield1.2%

Asset ClassEquity

Index TrackedWisdomTree Japan Hedged Equity Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume654,291

30 Day Avg. Volume653,472

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

173.54

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering429

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

DXJ Summary

DXJ is an ETF that tracks the WisdomTree Japan Hedged Equity Index, giving you broad exposure to Japanese stocks while trying to reduce the impact of yen–U.S. dollar currency swings. It owns many types of companies, including industrials, banks, and consumer brands, with well-known names like Toyota Motor and Mitsubishi UFJ Financial Group among its top holdings. Someone might invest in DXJ to seek growth and diversification outside the U.S. while limiting currency risk. A key risk is that Japanese stock prices can still rise or fall significantly with Japan’s economy and global markets.

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

DXJ is leaning heavily on Japan’s big financial houses and industrial champions to do the heavy lifting. Banks like Mitsubishi UFJ, Sumitomo Mitsui, and Mizuho are rising and effectively steering the fund, helped by a supportive rate backdrop. Toyota adds steady horsepower, while trading giants like Mitsubishi and Mitsui are also pushing performance higher despite some valuation worries. On the softer side, defensives such as Nippon Telegraph and Japan Tobacco are more mixed, occasionally tapping the brakes. Overall, this is a Japan-only play, concentrated in financials and industrials rather than flashy tech.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
8306	Mitsubishi UFJ Financial Group	4.83%	$290.51M	¥29.70T	20.65%	76 Outperform
7203	Toyota Motor	4.75%	$286.01M	¥43.92T	22.70%	80 Outperform
8316	Sumitomo Mitsui Financial Group	3.07%	$184.82M	¥19.50T	26.13%	77 Outperform
8058	Mitsubishi	2.94%	$177.23M	¥19.75T	85.34%	60 Neutral
8766	Tokio Marine Holdings	2.48%	$149.53M	¥11.24T	2.70%	66 Neutral
8031	Mitsui & Co	2.34%	$141.14M	¥16.63T	95.55%	74 Outperform
9432	Nippon Telegraph and Telephone	2.32%	$139.89M	¥13.19T	3.12%	73 Outperform
8411	Mizuho Financial Group	2.28%	$137.15M	¥15.25T	27.99%	77 Outperform
2914	Japan Tobacco	2.25%	$135.72M	¥10.14T	29.88%	75 Outperform
4502	Takeda Pharmaceutical Co	2.02%	$121.44M	¥8.99T	17.02%	66 Neutral

DXJ Technical Analysis

Technical Analysis Sentiment

Negative

Last Price―

Price Trends

50DMA

157.93

Negative

100DMA

148.16

Positive

200DMA

134.51

Positive

Market Momentum

MACD

-0.54

Positive

RSI

39.12

Neutral

STOCH

27.66

Neutral

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For DXJ, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 163.45, equal to the 50-day MA of 157.93, and equal to the 200-day MA of 134.51, indicating a neutral trend. The MACD of -0.54 indicates Positive momentum. The RSI at 39.12 is Neutral, neither overbought nor oversold. The STOCH value of 27.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DXJ.

DXJ Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
DXJ	―	―	$6.07B	0.48%	70 Neutral
EWJ	―	―	$19.06B	0.49%	71 Outperform
BBJP	―	―	$15.00B	0.19%	71 Outperform
FLJP	―	―	$3.07B	0.09%	70 Outperform
DBJP	―	―	$589.67M	0.45%	68 Neutral
OPPJ	―	―	$245.30M	0.58%	69 Neutral

Performance Comparison

DXJ

WisdomTree Japan Hedged Equity Fund

155.64

44.17

39.63%

EWJ

iShares MSCI Japan ETF

―

BBJP

JPMorgan BetaBuilders Japan ETF

―

FLJP

Franklin FTSE Japan ETF

―

DBJP

Xtrackers MSCI Japan Hedged Equity ETF

―

OPPJ

WisdomTree Japan Opportunities Fund

―

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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