Offers Access to Quality Dividend Growth Stocks in Japan Without Yen Exposure; Expanding Suite of Japan-Focused Funds...
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WisdomTree has announced the launch of the WisdomTree Japan Hedged Dividend Growth Fund (JHDG) on the NYSE Arca. JHDG seeks to provide exposure to dividend-paying stocks of companies with growth characteristics that are incorporated in Japan, while neutralizing exposure to fluctuations between the yen and the U.S. dollar. The Fund has a net expense ratio of 0.43%.1
Japan’s Economy Proving Resilient
Japan is showing signs of renewed economic vitality, much to the credit of Prime Minister Shinzo Abe’s aggressive fiscal and monetary policies, commonly referred to as Abenomics.2 One key to Japan’s revitalization lies in Abe’s third arrow – structural reform, which is still in its early stages of being implemented across the private sector.
“As Abenomics continues to gain traction, we see companies becoming more profitable and are becoming better stewards of their financial capital, returning more of it to shareholders through dividends and stock buybacks to achieve higher returns on equity (ROE).3
We believe that JHDG captures the intersection of these trends with a beneficial marriage of growth and quality characteristics without the added exposure to the risk of the yen,” said Jeremy Schwartz, WisdomTree Director of Research.
Accessing Japan’s Dividend Growers, Eliminating Japan’s Currency Exposure
Japanese equities have been one of the best-performing equity markets in the world since late 2012.4 Since then, two major themes have been evident: the depreciation of the yen and the rise in equity prices, and the improvement of Japanese firms’ fundamentals – evident in rising corporate profits and dividends.
Schwartz added, “We see evidence that companies are responding to the reform initiatives designed to encourage better and more efficient allocation of capital. We believe companies are becoming increasingly focused on delivering higher ROE and that this goal may support above-average dividend growth over the coming years. JHDG allows investors to access high quality companies growing their dividends (at record rates), without having to assume a secondary ‘currency bet’ by being exposed to the yen.”
1 The Fund's gross expense ratio of 0.48% and the net expense ratio of 0.43% reflect a contractual waiver of 0.05% through 7/31/16.
2 Abenomics: Series of policies enacted after the election of Japanese Prime Minister Shinzo Abe on December 16, 2012 aimed at stimulating Japan’s economic growth.
3 Return on Equity (ROE): Measures a corporation’s profitability by revealing how much profit a company generates with the money shareholders have invested.
4 Source: Bloomberg. Measured from 11/30/12 to 2/28/15.
Expanding the WisdomTree Toolkit For Exposure to Japan
With the launch of JHDG, WisdomTree now offers nine Japan-focused ETFs.
Ticker - Fund Name - Expense Ratio
JHDG WisdomTree Japan Hedged Dividend Growth Fund 0.43%1
DXJ WisdomTree Japan Hedged Equity Fund 0.48%
DXJS WisdomTree Japan Hedged SmallCap Equity Fund 0.58%
DXJF WisdomTree Japan Hedged Financials Fund 0.43%5
DXJR WisdomTree Japan Hedged Real Estate Fund 0.43%5
DXJC WisdomTree Japan Hedged Capital Goods Fund 0.43%5
DXJH WisdomTree Japan Hedged Health Care Fund 0.43%5
DXJT WisdomTree Japan Hedged Tech, Media and Telecom Fund 0.43%5
DFJ WisdomTree Japan SmallCap Dividend Fund 0.58%
This JHDG Fund is new and has a limited operating history.