WisdomTree Japan Hedged Equity Fund (NYSEARCA:DXJ) Takes Cues From BOJ Policy


Dallas, Texas 10/21/2013 (Financialstrend) – WisdomTree Japan Hedged Equity Fund (NYSEARCA:DXJ) is an exchange traded fund. It has retained a non diversified investment outlook and tracks its returns against the performance of WisdomTree Japan Dividend Index. This is a weighted index which tracks the comprehensive performance of companies which are traded on the Tokyo stock exchange and which pay dividends regularly. The fund is managed and advised by “WisdomTree Asset Management, Inc”.

Over the past 12 months the traded fund has paid out dividend of 0.49 per share which translates to a annual dividend yield of 1.02%.  It has appreciated by close to 7.7% over the trailing 200 day trading average.  As of close of business on October 18, the stock was trading at $48.2 per share which was the same price the stock was operating at over the previous two days. Over the previous week the stock of this ETF has dipped negligibly by 0.02% and by close to 1.25% in the past one month.

Analysts are relating the weakness in the stock to Bank of Japan’s decision not to make any course correction from its previously announced fiscal measures. This means the purchase of Government Bonds issued by the Japanese government will continue till such a time that the inflation mark tips over the bench mark 2% that the Bank of Japan is aiming at.  In the current macro economic situation, inflation in Japan is hovering around the 1% mark.

Analysts and industrialists alike are worried about the pace at which the fiscal regulator is going about meeting its target of desired inflation levels. In spite of the steady issuance of government bonds over the past year, the monetary base has gone up only by 50% since September last year. While in itself this appreciation is a good progress, it will only help keep the economy from slipping into a deflation.