XTrackers JPX-Nikkei 400 UCITS ETF 4C USD Hedged
| Issuer: Xtrackers |
| Asset Class: Equity |
| TER: 25bps |
| Trading Currency: USD |
| Pays Income: False |
| Listing Date: 14 Aug 2015 |
| Ticker: XDNU |
| ISIN: IE00BTGD1B38 |
This product provides targeted exposure to the Japanese equity market through a modern, sophisticated benchmark. The underlying index is designed to feature companies that hold a high appeal for investors, focusing on key metrics such as return on equity, cumulative operating profit, and market capitalization. In contrast to traditional market-cap-weighted indices, this methodology prioritizes companies demonstrating strong profitability and solid fundamentals, seeking to capture the performance of Japan's most efficient and well-managed corporations. This offers investors a strategic tilt towards quality within the Japanese market.
The index consists of 400 common stocks chosen from the Tokyo Stock Exchange. The selection process integrates qualitative criteria, like the appointment of independent external directors, with quantitative financial performance factors. This combined emphasis on corporate governance and profitability aims to align the index with the objectives of long-term investors. By investing in this collection of securities, one achieves diversified access to various sectors of the Japanese economy, such as technology, industrials, and consumer discretionary, but with a distinct focus on firms that exhibit superior capital efficiency and a commitment to creating shareholder value.
This instrument can function as a core holding for investors aiming for specific exposure to Japan or as a complementary position for those looking to augment a wider global equity portfolio with a quality-oriented allocation. It presents an opportunity to participate in the growth potential of the world's third-largest economy while concentrating on companies that meet higher standards of corporate governance and profitability. This strategic approach may provide a more resilient performance profile over the long term when compared to strategies based solely on market capitalization.
