iShares MSCI Japan USD Hedged UCITS ETF (Acc)
| Issuer: iShares |
| Asset Class: Equity |
| TER: 64bps |
| Trading Currency: USD |
| Pays Income: False |
| Listing Date: 01 Oct 2013 |
| Ticker: IJPD |
| ISIN: IE00BCLWRG39 |
This investment product is designed for those looking to gain exposure to the Japanese equity market while simultaneously mitigating currency fluctuations between the Japanese Yen and the US Dollar. The fund achieves this by tracking an index of large and mid-sized Japanese companies and employing a monthly currency hedge. By using one-month forward foreign exchange contracts, it aims to neutralize the impact of currency movements on returns, making it an appealing option for dollar-based investors who want the performance of their investment to be driven primarily by the underlying Japanese stocks rather than forex market volatility. This strategy provides a more direct way to invest in Japan's economic landscape.
The fund is particularly suitable for investors who hold a bullish view on Japanese equities but are concerned about a potential weakening of the yen against the dollar, which would otherwise diminish their returns. It offers targeted access to one of the world's largest and most advanced economies, renowned for its strong industrial, technological, and consumer goods sectors. By investing in a broad basket of securities, the fund provides inherent diversification across various industries, including well-known multinational corporations in the automotive, electronics, and financial sectors. This approach allows for participation in the potential growth of the Japanese market through a single, streamlined investment vehicle.
As an accumulating fund, all dividends paid by the constituent companies are reinvested back into the fund rather than being distributed to shareholders. This feature facilitates the compounding of returns over the long term, making it a fitting choice for investors with a growth-focused strategy and a longer investment horizon. The physical replication method means the fund holds the actual shares of the companies in the index, offering a high degree of transparency and direct ownership of the underlying assets. This structure provides a straightforward and efficient way to build a core allocation to Japanese equities within a global portfolio, with the added benefit of currency risk management.
