iShares MSCI Japan Value ETF

EWJV

Market cap $560M

iShares MSCI Japan Value ETF trades at a 14.15 P/E, significantly cheaper than U.S. value ETFs. EWJV benefits from Japan's recent rate hikes, potential Yen appreciation, and remains attractively valued at 84% of Graham's intrinsic value metric for the entire ETF as an average. The ETF's top holdings include Toyota and major Japanese trading houses, with a low 3-year standard deviation of 10.94%.

Core inflation, which strips out prices of fresh food, remained unchanged from 3% in October, and came in line with Reuters-polled economists' average estimate.

Nikkei 225 struggles below 50,000 as upside momentum fades. Daily RSI drifts into neutral territory, signaling consolidation.

The Nikkei 225 falls to 49,303 as rate-hike odds for December 19 approach 80%. Electronics, pharma, and industrials lead declines as liquidity expectations tighten.

Nikkei closes at 51,063, extending gains for a second session. Manufacturing confidence hits a four-year high as exports strengthen.

Keep Japanese ETFs like EWJ, DXJ, and EWJV in your watchlist as investors pivot from volatile U.S. markets to Japan's surging equities.

Despite a narrower mandate, EWJV's expense ratio is 0.15% against the 0.5% for broader EWJ. However, EWJV is more indexed to financials and less indexed to IT which is an export-led market as well, particularly in semiconductors. With the political reality in Japan threatening the Yen, we'd rather export led exposures right now.

Solid growth and ongoing shareholder-friendly reforms are driving Japanese equity gains, keeping us overweight. We see the AI theme playing out globally.

Berkshire's higher stakes in Mitsubishi and Mitsui spark a rally in Japan's trading houses. ETFs like FJP, EWJV, DFJ, SCJ, FLJH are likely to benefit.

iShares MSCI Japan Value ETF's sector selection, with heavy financials and export-oriented industries, increases vulnerability to yen weakness and U.S. tariffs. Upcoming Japanese elections and potential stimulus could further weaken the yen, linked also to raising rates hurting equities. A weaker yen could be worsened by a reignited carry trade, and financials have the most to lose here with little foreign FX inflows as a hedge.