EWJV Profile
The iShares MSCI Japan Value ETF is designed to track the performance of a free float-weighted index that captures the value-oriented characteristics of large- and mid-cap Japanese equities. This index focuses on stocks with value attributes, including lower price-to-earnings ratios and higher dividend yields, aiming to represent the value segment of the Japanese equity market. The fund's approach provides exposure to companies that are deemed undervalued relative to their earnings, book value, or other fundamental metrics.
To achieve its investment objective, the ETF generally allocates at least 80% of its assets to the component securities of the underlying index. This involves investing in equities that match the value characteristics and economic attributes of the index's constituents. Additionally, the fund maintains flexibility by investing up to 20% of its assets in various financial instruments, including futures, options, and swap contracts, as well as cash and cash equivalents. These investments help manage liquidity and risk while seeking to closely track the index's performance.
The fund's investment strategy is focused on identifying and capturing opportunities within the value segment of the Japanese equity market, which can offer potential advantages in terms of valuation and income. By emphasizing value stocks, the ETF aims to provide investors with exposure to companies that may be trading below their intrinsic value, based on fundamental analysis. This approach aligns with the broader trend of value investing, where the focus is on seeking undervalued assets with the potential for long-term growth.
As part of iShares' suite of international equity funds, the iShares MSCI Japan Value ETF offers a targeted investment strategy for those seeking to diversify their portfolios with Japanese value stocks. By investing in large- and mid-cap Japanese equities with a value tilt, the ETF aims to deliver performance that reflects the value-oriented investment style, potentially offering opportunities for capital appreciation and income generation within the Japanese market.
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