DXJ - ETF AI Analysis
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WisdomTree Japan Hedged Equity Fund (DXJ)
DXJ, the WisdomTree Japan Hedged Equity Fund, has a solid overall rating driven mainly by strong, diversified Japanese blue chips like Toyota and Hitachi, which show robust financial health, reasonable valuations, and positive growth outlooks. Financial groups such as Mitsubishi UFJ and Sumitomo Mitsui also support the fund’s quality, though risks from weaker names like Tokio Marine and SoftBank, which face bearish momentum and leverage or cash flow challenges, slightly weigh on the rating. The main risk factor is the fund’s concentration in Japanese equities, meaning performance is closely tied to Japan’s market and economic conditions.
DXJ vs. SPDR S&P 500 ETF (SPY)
- AUM
- 7.02B
- Region
- Asia-Pacific
- Expense Ratio
- 0.48%
- Beta
- 0.79
- Issuer
- WisdomTree
- Inception Date
- Jun 16, 2006
- Dividend Yield
- 2.66%
- Asset Class
- Equity
- Index Tracked
- WisdomTree Japan Hedged Equity Index
DXJ Summary
DXJ is an exchange-traded fund that follows the WisdomTree Japan Hedged Equity Index, giving you broad exposure to Japanese stocks while trying to reduce the impact of currency swings between the yen and the U.S. dollar. It holds many types of companies, including industrials, banks, consumer brands, and tech firms. Well-known names include Toyota Motor and SoftBank Group. Someone might invest in DXJ to diversify internationally and tap into potential growth in Japan without worrying as much about currency moves. A key risk is that Japanese stock prices can still go up and down significantly with the overall market.
How much will it cost me?
This ETF has an expense ratio of 0.48%, which means you’ll pay about $4.80 per year for every $1,000 invested. That’s higher than the average low-cost index ETF because DXJ uses a more complex, actively designed strategy that hedges currency risk rather than simply tracking a basic market index.
What would affect this ETF?
DXJ could benefit if Japan’s economy grows, global demand for industrials, autos, and technology stays strong, and the yen remains volatile, since its currency hedge is designed to reduce the impact of exchange-rate swings on returns. On the negative side, weaker economic conditions in Japan, pressure on banks and financial firms from changing interest rates or regulations, or global slowdowns that hurt major holdings like Toyota and SoftBank could weigh on the ETF’s performance.
DXJ Top 10 Holdings
DXJ is essentially a bet on Japan Inc., with heavyweight positions in Toyota and the big banks steering the ship. Toyota has been losing steam this year, acting as a drag, while Mitsubishi UFJ and Sumitomo Mitsui have been steadier drivers thanks to rising financials, even if recent trading has been choppy. On the growth side, semiconductor names like Advantest and Tokyo Electron are powering ahead, giving the fund a tech edge, while SoftBank’s mixed, lagging performance adds some turbulence. Overall, it’s a Japan-only play, tilted toward financials, industrials, and chip-related tech.
| Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
 JP:7203 | Toyota Motor | 5.04% | $351.10M | JPY 36.13T | -2.77% | 80Outperform |
 JP:8306 | Mitsubishi UFJ Financial Group | 4.25% | $296.27M | JPY 38.08T | 45.19% | 76Outperform |
 JP:8316 | Sumitomo Mitsui Financial Group | 4.03% | $280.77M | JPY 23.91T | 51.57% | 77Outperform |
 JP:8035 | Tokyo Electron | 3.19% | $222.14M | JPY 23.28T | 46.36% | 73Outperform |
 JP:6857 | Advantest | 2.67% | $186.11M | JPY 24.95T | 54.61% | 75Outperform |
 JP:8766 | Tokio Marine Holdings | 2.23% | $155.14M | JPY 16.68T | 49.32% | 66Neutral |
 JP:9432 | Nippon Telegraph and Telephone | 2.19% | $152.95M | JPY 14.87T | 10.16% | 73Outperform |
 JP:2914 | Japan Tobacco | 2.19% | $152.91M | JPY 13.07T | 37.26% | 75Outperform |
 JP:9984 | SoftBank Group | 2.10% | $146.38M | JPY 25.17T | -34.82% | 64Neutral |
 JP:6501 | Hitachi,Ltd. | 1.99% | $138.53M | JPY 22.48T | -6.54% | 77Outperform |
DXJ Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For DXJ, the sentiment is Negative. The current price of 58.96 is below the 20-day moving average (MA) of 59.72, below the 50-day MA of 59.71, and above the 200-day MA of 56.54, indicating a neutral trend. The MACD of -0.26 indicates Positive momentum. The RSI at 44.38 is Neutral, neither overbought nor oversold. The STOCH value of 37.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DXJ.
DXJ Peer Comparison
Comparison Results
| Name | Price | Price Target | AUM | Expense Ratio | Overall Rating |
|---|---|---|---|---|---|
| DXJ | $58.96 | $65.00(10.24% Upside) | $7.02B | 0.48% | 71Outperform |
 EWJ | $92.59 | $122.57(32.38% Upside) | $23.46B | 0.49% | 71Outperform |
 BBJP | $74.92 | $100.22(33.77% Upside) | $18.60B | 0.19% | 71Outperform |
 FLJP | $39.52 | $52.03(31.65% Upside) | $4.22B | 0.09% | 70Outperform |
 DBJP | $111.98 | $148.49(32.61% Upside) | $702.68M | 0.45% | 70Outperform |
 OPPJ | $56.58 | ― | $320.62M | 0.58% | 69Neutral |
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| DXJ | WisdomTree Japan Hedged Equity Fund | 58.96 | 14.28 | 31.96% | |
| EWJ | iShares MSCI Japan ETF | 92.59 | 13.21 | 16.64% | |
| BBJP | JPMorgan BetaBuilders Japan ETF | 74.92 | 10.10 | 15.59% | |
| FLJP | Franklin FTSE Japan ETF | 39.52 | 5.71 | 16.87% | |
| DBJP | Xtrackers MSCI Japan Hedged Equity ETF | 111.98 | 21.59 | 23.89% | |
| OPPJ | WisdomTree Japan Opportunities Fund | 56.58 | 13.57 | 31.57% |
This AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.