– ETF Watchlist –
The markets appear to be stabilizing in the United States, but if you haven’t yet heard, the market is strong for Japanese stocks. Warren Buffett added a spark in April when he visited Japan to announce that Berkshire Hathaway boosted its investment in Japanese trading houses to 7.4%. Overseas investors followed suit, buying $7.83 billion in Japanese stocks.
The prospects for Japan continue to look up as well, even well into June. So where does the opportunity lie for investors and traders in this country? Well, we can look to Japanese ETFs for a little slice of the action.
Now, these ETFs may not have the highest volume, so trading them may be a bit difficult. However, if you were to go long the equity itself, you could play this as more of a short-term play, looking for the boost in buying to continue. Let’s take a look at one of our options when looking across the pacific for solid returns.
iShares MSCI Japan ETF (EWJ)
One of the most common Japan ETFs is EWJ. This ETF has broad exposure to Japanese stocks in order to make sure your boat is lifted by this rising tide. Some of the stocks Warren Buffett’s Berkshire Hathaway is buying up are some of the top holdings in the ETF.
For example, two of the countries largest financial groups Mitsubishi and Sumitomo are among these holdings. If the Japan trade is set to continue, which the Oracle of Omaha seems to believe it will, this could be a god add to your short or long-term portfolio. Keep an eye on this ETF going forward to see if the Japan trade has ay legs.
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