Japan: Weekly ETF and CEF Performance

Japanese ETFs trading in the U.S. mostly traded to the upside again last week, led by a 2.9% rise by the Japan Smaller Cap Fund, Inc. (JOF) closed-end fund. However, Japan continues to lag further behind the double-digit gains year-to-date across the board in Asia.

The Tokyo Stock Exchange was closed Monday (7/16) in observation of Marine Day, also known as Ocean or Beach Day.

According to data from the Nikkei Shimbun, as of Friday's close, the N225 components have a price-to-book ratio of 2.07, ttm p/e of 20.78, f/p/e of 19.55 and a dividend yield of 1.07% (expected) and 1.0% ttm.

See the chart below of the N225 as of Friday's close.

See the chart below for last week's and ytd returns of the 10 Japanese ETFs (including 2 CEFs) trading in the U.S.

Click to enlarge chart

Disclosure: The author does not own shares of any funds mentioned in this article.

Vanguard's Pacific Stock ETF (VPL) added 1.5%, extending its lead over rival Japan ETFs (ytd +9.3%). It was helped by its exposure to Hong Kong [iShares Hong Kong (EWH)], Australia (EWA) and Singapore (EWS).

iShares MSCI Japan Index (EWJ), the most actively traded country-based ETF, rose 1.0%, and is now up 4.0% for the year.

Japan Smaller Capitalization Fund, Inc. (JOF) gained 2.9%, reducing its ytd loss to 2.5%.

Japan Equity Fund, Inc. (JEQ), also a closed-end fund, rose 1.6%, increasing its ytd return to 2.5%.

The yen has strengthened slightly against the US$ in recent trading.

See CurrencyShares Japanese Yen Trust (FXY) ETF year-to-date chart (as of Monday's close):

For your reference, here's a list of the 10 funds surveyed in this weekly summary.

iShares MSCI Japan Index (EWJ)
iShares S&P/TOPIX 150 (ITF)
Japan Equity Fund, Inc. (JEQ)
Japan Smaller Capitalization Fund, Inc. (JOF)
SPDR Russell/Nomura Prime Japan (JPP)
SPDR Russell/Nomura SmallCap Japan (JSC)
Vanguard Pacific Stock (VPL)
WisdomTree JP High-Yielding Equity (DNL)
WisdomTree JP SmallCap Dividend (DFJ)
WisdomTree JP Total Dividend (DXJ)