Invesco CurrencyShares Japanese Yen Trust

FXY

Market cap $427M

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.

Sumitomo Mitsui Financial Group plans to double revenue from its sales and trading unit to 800 billion yen, or about $5 billion, within the next few years as Japan's shift away from ultra-low rates drives demand for market products. Arihiro Nagata, head of the bank's global markets division, told Reuters that the business currently generates about 400 billion yen in revenue.

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

Japan stocks are rallying on the BoJ's dovish stance & Takaichi's pro-growth push. Play the trend via ETFs DXJ, DBJP, HEWJ, and YCS.

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

FXY's recent recovery is mainly driven by soft US economic outlook. The US trade war has weakened the US dollar, supporting the yen and FXY. The BOJ faces a balancing act: fighting inflation while avoiding recession that could stem from the US-Japan trade war -- putting on pause rate hikes in the near future.

Israel's airstrikes on Iran cause global market jitters, driving demand for safe-haven ETFs like GLD, TLT and UUP.

Japan's bond market is causing ripples across global financial markets, with rising long-dated government bond yields threatening to trigger capital flight from the United States and unwind the popular carry trade strategy. The carry trade is a strategy where investors borrow in low-yielding currencies like the yen to invest in higher-yielding assets abroad.

U.S. equities have probably left behind their peak time and may face long-term decline, per Christopher Wood, Global Head of Equity Strategy at Jefferies Financial Group Inc., as quoted on Bloomberg.

Here, we highlight five safe-haven ETFs that investors should consider adding to their portfolios as trade fears continue to escalate.