JPXN Profile
The iShares JPX-Nikkei 400 ETF is designed to provide investors with targeted exposure to a broad range of Japanese equities by tracking the JPX-Nikkei 400 Index. This index includes a diverse mix of large-, mid-, and small-capitalization companies, representing a comprehensive cross-section of the Japanese equity market. The fund commits to investing at least 80% of its assets in the component securities of the underlying index, as well as in instruments that exhibit economic characteristics substantially identical to those of the index's components. This focus ensures that the ETF closely mirrors the performance and composition of the JPX-Nikkei 400 Index, offering investors a reliable way to tap into Japan's dynamic economy.
The JPX-Nikkei 400 Index is designed to highlight companies that meet certain criteria for capital efficiency, profitability, and investor-focused management practices. The index includes companies that demonstrate strong financial health, efficient use of capital, and a commitment to enhancing shareholder value, making it an attractive benchmark for investors seeking quality exposure in the Japanese market. By focusing on these metrics, the ETF aims to capture not just broad market performance, but also the superior returns associated with well-managed, financially sound companies across different market capitalizations.
The currency of the component securities in the underlying index is the Japanese yen, which means that the fund's performance is also influenced by fluctuations in the exchange rate between the yen and the investor's base currency. This exposure to the yen can add a layer of currency risk, but it also provides a hedge against movements in the global currency markets, particularly for investors seeking diversification away from U.S. dollar-denominated assets. The fund's strategy of including small-, mid-, and large-cap companies enhances its ability to capture growth across various sectors of the Japanese economy, from established industry leaders to emerging players.
Managed by iShares, a leader in the global ETF market, the iShares JPX-Nikkei 400 ETF benefits from the firm's extensive expertise in passive management and its robust research capabilities. The fund offers a low-cost, efficient way to gain exposure to Japanese equities, with a focus on quality and capital efficiency that distinguishes it from other broad market indices. For investors looking to diversify their portfolios with international exposure, particularly in a market known for its innovation and economic resilience, the iShares JPX-Nikkei 400 ETF presents a compelling investment opportunity.
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