EWJ Profile
The iShares MSCI Japan ETF seeks to provide investors with exposure to the performance of large- and mid-cap stocks within the Japanese equity market. The fund aims to replicate the performance of its underlying index, which is specifically designed to represent the broader segments of Japan's equity market, encompassing the largest and most influential companies. By focusing on these segments, the ETF offers a comprehensive view of the Japanese stock market's performance, reflecting both established industry leaders and significant emerging players.
The underlying index used by the fund is constructed to track the performance of a diverse range of Japanese companies across various sectors. It includes both large-cap and mid-cap stocks, providing a balanced representation of the market that captures key economic and market trends within Japan. This approach allows the ETF to offer a broad exposure to Japanese equities, reflecting the performance of major corporations and mid-sized companies that are integral to the country's economic landscape.
Under normal market conditions, the iShares MSCI Japan ETF will invest at least 80% of its total assets in securities that are part of its underlying index or in investments with similar economic characteristics. This focus ensures that the ETF maintains a close correlation with the index's performance, aiming to deliver returns that closely mirror those of the Japanese equity market. The remaining assets may be allocated to other investments, including those not directly included in the index, to enhance portfolio management flexibility.
As an exchange-traded fund, the iShares MSCI Japan ETF provides investors with a liquid and cost-effective way to gain exposure to Japan's equity market. The fund's strategy involves regular rebalancing to ensure alignment with the underlying index, adjusting for changes in market conditions and index composition. This approach helps investors capture the performance of Japan's major and mid-sized companies while maintaining a strategic focus on the broader market trends and economic developments within the country.
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