iShares MSCI Japan Value ETF

EWJV

Market cap $718M

Japan's recovery from the “lost decades” of deflation and meager growth has been an on-again, off-again phenomenon. We believe that Japan should reach the “cruising altitude” phase this year and beyond, with a revised code to push companies to make better use of their cash and other assets in helping drive long-term growth.

Japan core inflation holds steady in May, matching expectations despite energy price concerns

The BOJ lifted rates to a 31-year high as inflation risks persist. Here are Japan-focused ETFs that could benefit from the policy shift.

I am bullish on Japanese equities, emphasizing that Japan's high debt/GDP is offset by a robust asset base and pension fund scale. Japan's Government Pension Investment Fund and BOJ asset accumulation provide significant competitive advantages and underpin market resilience.

Japan equities are riding a historic surge, with the Nikkei 225 topping 62,000 for the first time. While the S&P 500 and Nasdaq continue to notch records, Japan is carving out its own bull market, driven by AI-fueled tech gains, structural corporate reforms, and a transformative era of economic policy.

BOJ holds rates at 0.75% but lifts inflation outlook amid Iran war risks. Yen ETF FXY and value ETF EWJV come into focus.

The Bank of Japan kept its policy rate at 0.75% but raised inflation forecasts and trimmed growth views as it warned about the impact of a spike in energy prices.

The BOJ also cuts its growth forecasts for the fiscal year 2026 to 0.5% from 1%. The bank raised its core inflation forecasts to 2.8% from 1.9%.

The iShares MSCI Japan Value ETF has delivered solid gains so far in 2026, boosted by attractive valuations and lower political risk in Japan. While recent energy price volatility is likely to negatively affect earnings growth at cyclical Japanese companies, I rank EWJV a Buy for investors focused on long-term total returns. EWJV holdings trade at a steep discount relative to the S&P 500, indicating a significant margin of safety as long as the Japanese economy does not enter a recession.

Japan's Nikkei 225 hits a record as Sanae Takaichi's election win fuels stimulus hopes, lifting investor appetite for Japanese ETFs like EWJ.