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EWJ’s Sectoral Composition and Industry Performances

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Nov. 20 2020, Updated 11:52 a.m. ET

EWJ’s sectoral composition

The iShares MSCI Japan ETF (EWJ) is one of the most well-known US-traded ETFs providing exposure to Japanese equities. The fund invests in a wide range of sectors. The consumer cyclical sector dominates the EWJ portfolio with a 21% weight, followed by the industrial sector at 17%. The financial services and technology sectors have weights of 15% and 12%, respectively. Below is a chart that shows the sectoral diversification of the EWJ.

The EWJ invests in large capitalization stocks such as Toyota Motor Corporation (TM), Mitsubishi UFJ Financial Group (MTU), Sumitomo Mitsui Financial Group (SMFG), Honda Motor Company (HMC), SoftBank Group (SFTBY).

The fund has returned ~10.5 YTD (year-to-date) as of October 26. The ETF fell 0.08% from the previous day to close at $12.50 on October 26 ahead of this week’s FOMC (Federal Open Market Committee) meeting and the Bank of Japan’s monetary policy review on Friday, October 30.

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EWJ’s industry-wise performance

On October 26, the top three performing industries were machinery, home furnishings, and pharmaceuticals. The above graph shows the performance of industries in the EWJ.

Out of the 316 constituents of the fund, 242 stocks rose on October 26. The top three performing stocks for the day were Panasonic Corporation (PCRFY), Hitachi (HTHIY), and Minebea (MNBEY), which rose 6.1%, 6.1% and 5.1%, respectively.

The stocks at the bottom were Nippon Yusen Kabushiki Kaisha, Yokogawa Electric Corporation, and Nomura Research Institute, which returned -3.3%, -2.4%, and -2.0%, respectively.

In the next part of this series, we’ll analyze the fund from a statistical point of view.

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