A rising interest in Japanese stocks is captivating American advisors. The iShares Currency Hedged MSCI Japan ETF (Ticker: HEWJ) has surged an impressive 22 per cent year-to-date, significantly outperforming the S&P 500’s still-notable 13 per cent return so far in 2024. The iShares MSCI Japan ETF (Ticker: EWJ), up 8.5 per cent year-to-date, evidently demonstrates how the yen’s decline to 156 per dollar is boosting stocks in Japan’s export-oriented nation.
For the first time in what feels like forever, American investors are taking advantage of the dollar’s purchasing power to buy more stocks in the land of the rising sun.
One of the biggest beneficiaries so far is Berkshire Hathaway founder Warren Buffett. The infamously savvy multi-billionaire invested in five major Japanese trading houses in 2019. He’s already reaping the benefits of his early investment.
Now, the rest of the United States wants in on it too.
Nevertheless, not everyone is a fan of diversifying their chips outside of the United States. Many are still keeping their investments close to the homeland.
TritonPoint Wealth partner Will Sterling explains that Japanese equities have been underperforming the S&P 500 in 2024, especially when you consider how much weaker the Yen has gotten.
According to Sterling, it isn’t just Japan that will follow a similar roadmap but also South Korea.