How do overseas investors invest in the Japanese market?
The Japanese stock market is strengthening due to several comprehensive factors: long-term maintenance of low interest rates, stimulating the economy and increasing domestic demand and investment at the corporate level, and reducing financing costs at the stock market level.
Japanese financial conglomerates, similar to the "Big Seven" in the US stock market, also play an important role in the secondary market, with relatively low valuation and high dividends, supporting the inflow of funds.
1, Broad Market ETFs and futures
In addition to the Nikkei ETF, Japan's major national ETFs,
Nikkei 225: $Japan ETF-iShares MSCI (EWJ) $$Franklin FTSE Japan ETF (FLJP) $$JPMorgan BetaBuilders Japan ETF (BBJP) $
with hedging, Japan Dividend Index ETF-WisdomTree (DXJ) $$iShares Currency Hedged MSCI Japan ETF (HEWJ) $$Xtrackers MSCI Japan Hedged Equity ETF (DBJP) $
Styles of small-caps$iShares MSCI Japan Value ETF (EWJV) $$Ishares Msci Japan Small Cap Ind (SCJ) $
Nikkei futures, $OSE Mini Nikkei 225 - Mar 2024(JMI2403)$ $OSE Mini Nikkei 225 - main 2403(JMImain)$
2, Large keiretsu
Like Buffett, a with wide industry and strong competitiveness is naturally preferred, but it should also be noted that Buffett's position has a certain "Buffett aura". Other leading Japanese companies are often the best in corresponding fields.
$Marubeni Corp.(MARUY)$ ,$Mitsui & Co. (MITSY) $$Mitsubishi UFJ Finance (MUFG) $, $Itochu Corp.(ITOCY)$ and $Sumitomo Mitsui Financial (SMFG) $.
They performed much better than Nikkei 225, just like Magnificant 7 did to $S&P 500(.SPX)$
3, Top of industries.
Automotive industry$Toyota Motor (TM) $,Honda Motor (HMC) $;
Manufacturing industry$Keyence Corp. (KYCCF) $, $Tokyo Electron Ltd. (TOELF) $;
Entertainment industry$SONY (SONY) $ $Nintendo (NTDOY) $;
Pharmaceutical industry$Daiichi Sankyo Co., Ltd. (DSKYF) $$Takeda Pharmaceutical Co Ltd (TAK) $;
Chemical Industry$Shin-Etsu Chemical Co., Ltd. (SHECY) $;
Telecom Industry$Nippon Telegraph & amp; Telephone Corp. (NPPXF) $ $SoftBank Group (SFTBY) $;
Consumer goods, Parent company of Uniqlo, in $Fast Retailing Co. Ltd. (FRCOF) $.
Attention!
Investors with trading access to the Japanese market can directly trade Japanese stocks on the secondary market. Brokerages with significant purchasing power can use Japanese yen liabilities to buy Japanese stocks, saving on interest.
In addition, this year's monetary policy of the Bank of Japan may undergo changes, and potential appreciation of the yen can be hedged by purchasing Japanese yen or Japanese yen futures or ETF $Japanese Yen - main 2403(JPYmain)$ $Invesco CurrencyShares Japanese Yen Trust(FXY)$
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