ETF Talk: Capitalizing on Japan’s Economic Uptick

The Bank of Japan released a report on July 12 that revealed the country’s first real signs of economic recovery since 2011. Combined with the continued astonishing rise of the Japanese markets, it may be time to take another bite of the Japanese apple. The exchange-traded fund (ETF) best positioned to tap these recent developments for a profit is iShares MSCI Japan Small Cap Index Fund (SCJ).

This fund seeks investment results which, before fees and expenses, correspond generally to the performance of an index which targets small-cap stocks in multiple industry groups traded primarily on the Tokyo Stock Exchange.

This highly diversified ETF is uniquely positioned to benefit from a general rise in the Japanese economy, as it only has 5.94% of its investments in its top ten holdings. By investing in SCJ, you give yourself a vehicle for investing in this recovery, without the risks associated with pure plays or mostly homogenous ETFs.

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