This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Yen Strategy Pays Off for Now: DXJ vs. EWJ

Since the start of the year, EWJ has managed to perform positively, gaining approximately 10%. The fund's performance, however, has been trumped by the WisdomTree Japan Hedged Equity ETF (DXJ), which has gained nearly 17% during this period.

Rebranded from the WisdomTree Japan Dividend Index ETF during the opening half of 2010, DXJ mimics EWJ's focus on large and recognizable names comprising Japan's markets. However, the fund expands its approach further, by hedging against yen fluctuations. Since its unveiling, DXJ's currency strategy caused it to lag against EWJ. As the yen has tumbled, however, the bet has begun to pay off.

Investors who feel that more pain is in store for the yen on the road ahead may find DXJ to be an attractive bet on the future. However, with economic conditions showing improvement, the nation's central bank may find itself easing up on the stimulus gas pedal.

As long as the global outlook continues to improve, both DXJ and EWJ will likely see upward action. However, those looking to make a bet on which will outperform in the coming months may want to hold off until more yen-related clues are uncovered.

Written by Don Dion in Williamstown, Mass.


At the time of publication, Dion Money Management did not own any equities mentioned.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
DXJ $41.61 0.00%
EWJ $11.48 0.00%
FXY $90.25 0.00%
AAPL $93.24 0.00%
FB $117.81 0.00%


Chart of I:DJI
DOW 17,660.71 +9.45 0.05%
S&P 500 2,050.63 -0.49 -0.02%
NASDAQ 4,717.0940 -8.5450 -0.18%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs