Overview of DXJF
The WisdomTree Japan Hedged Financials ETF (DXJF) seeks to provide exposure to the Japanese financials sector (EWJ). This index is hedged against fluctuations in the yen for US investors and is market cap weighted.
As of November 3, DXJF has a market capitalization of $26 million. Shares of DXJF have fallen 3.8% in the last six months. Year-to-date, shares of DXJF have outperformed the developed market indexes and gained 15.0%. In comparison, US financials, European financials, and Chinese financials have generated negative returns year-to-date.
DXJF is the only ETF to provide exposure to Japanese financial stocks. Trading activity in the DXJF fund has been scarce, with only a few thousand shares trading hands each day.
The top five holdings of DXJF are Sumitomo Mitsui Financial Group (SMFG), Mitsubishi UFJ Financial Group (MTU), Tokio Marine Holdings (TKOMY), Dai-Ichi Life Insurance Company, and Nomura Holdings (NMR).
Moving average analysis
On October 30, 2015, DXJF closed at $27.45, below its 50-day and 20-day moving averages of $27.39 and $28.33, respectively. The chart below shows that DXJF crossed below its 20-day moving average on October 30, thereby signaling a “sell.”
The 14-day Relative Strength Index (or RSI) for the DXJF ETF was 48.45 as of October 30. The RSI for the DXJF ETF has improved from 38.6 on September 4, 2015, when Chinese markets plunged following the devaluation of the yuan. An RSI figure below 30 is an indication of an oversold stock while an RSI above 70 denotes an overbought stock.