DXJ Profile
The WisdomTree Japan Hedged Equity Fund is designed to provide investors with targeted exposure to the Japanese equity market while simultaneously mitigating the impact of currency fluctuations between the Japanese yen and the U.S. dollar. The fund achieves this by investing at least 95% of its total assets in component securities of the WisdomTree Japan Hedged Equity Index or investments that exhibit economic characteristics closely resembling those of the index's component securities. This approach allows investors to gain equity exposure to Japanese companies without being adversely affected by currency risk.
The underlying index, which the fund tracks, focuses on Japanese companies that are large-cap and export-oriented, which benefit from a weaker yen. By neutralizing currency risk, the fund seeks to offer a more stable return profile, allowing the performance of the underlying equities to drive returns rather than being influenced by exchange rate movements. This currency-hedged strategy is particularly beneficial for investors who are concerned about the volatility of the yen and its potential impact on their returns.
The fund's non-diversified status indicates that it may invest a larger portion of its assets in a smaller number of issuers, sectors, or geographic regions. This concentration strategy is designed to capitalize on the performance of the Japanese equity market while maintaining a hedge against the currency risk posed by the yen. The fund's focus on large-cap companies within Japan, combined with its currency hedge, makes it an attractive option for investors seeking exposure to Japan's economy with reduced currency risk.
By offering a hedged exposure to Japanese equities, the WisdomTree Japan Hedged Equity Fund provides a unique investment opportunity for those looking to benefit from Japan's economic growth while minimizing the impact of currency fluctuations. The fund's strategy is particularly well-suited for investors with a long-term outlook who are seeking to diversify their international equity holdings while mitigating the risks associated with foreign currency exposure.
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