[video] Quick Take: Expect Big Things From Japan's Small-Caps
NEW YORK ( TheStreet) -- While Japanese equities have been strong this year, WisdomTree's Chief Investment Strategist, Luciano Siracusano, tells TheStreet's Gregg Greenberg of a new way to gain exposure.
The WisdomTree Japan Hedged Equity ETF (DXJ) is the company's way of allowing investors to gain exposure to Japanese equities, without the headache of a declining yen.
That's apparently why the DXJ ETF saw tremendous success in the fourth quarter of 2012 and the first quarter of 2013. A strengthening yen this summer, however, has recently weighed down some of the fund's performance.
The new WisdomTree Japan Hedged Small-Cap Equity ETF (DXJS) works in a similar manner, says Siracusano, hedging out the currency headwinds, while exposing investors to Japanese small-cap stocks.He added that the Federal Reserve's tapering efforts will add strength to the dollar, which should allow the yen to depreciate and help the performance of the two ETFs. Siracusano went on to say that the Bank of Japan and Prime Minister Shinzo Abe will likely look for proposals and tax incentives to encourage Japanese investors to move out of cash and into equities. This would also bode well for these two Japanese ETFs from WisdomTree, he said. -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell
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