Industry Distribution:

• Industry: 25%
• Financial Services: 20%
• Technology: 15%

TOP 3 Markets:

• Japan: 60%
• USA: 20%
• Europe: 10%

The WisdomTree Japan Hedged Equity Fund (DXJ) mainly invests in Japanese companies operating in various industries, with a focus on industry, financial services, and technology. The largest market share comes from Japan itself, followed by the USA and Europe. This geographical diversification allows the fund to benefit from economic dynamics in different regions while minimizing currency risk through hedging strategies.

WisdomTree Trust - WisdomTree Japan Hedged Equity Fund (ARCA:DXJ) is an exchange-traded fund (ETF) and not a company that manufactures physical products.

This ETF invests in Japanese stocks and aims to provide investors with a hedge against exchange rate risks between the Japanese Yen and the US Dollar. As a financial fund, it does not produce physical products and therefore has no production facilities.

Current Strategy: Currency hedging and targeted investments in Japanese stocks

Focus on: Export-oriented companies and sectors with growth potential

WisdomTree Trust pursues a strategy with the WisdomTree Japan Hedged Equity Fund (DXJ) that aims to provide investors with access to Japanese stocks while simultaneously hedging the currency risk from the yen. This strategy is particularly attractive for investors who want to benefit from the performance of Japanese companies without being exposed to yen fluctuations.

Future growth is sought through a focus on export-oriented companies in Japan that could benefit from a weaker domestic currency. Additionally, the fund invests in sectors considered to be growth-oriented, such as technology and industry, to benefit from global demand and technological innovations.

The strategy also includes adjusting portfolio weights based on macroeconomic trends and Japan's economic development to optimize opportunities and minimize risks.

Main Imported Raw Materials: Oil, natural gas, coal, metals

Main Supplier Countries: Saudi Arabia, Australia, USA, Chile

Japan is heavily dependent on raw material imports as it has limited natural resources. The most important imported raw materials include oil, natural gas, and coal, which are mainly sourced from countries such as Saudi Arabia, Australia, and the USA. These raw materials are crucial for energy supply and industrial production in Japan.

Metals like copper and other industrial metals are often imported from Chile and other resource-rich countries. These materials are essential for the manufacturing industry, especially in the electronics and automotive production sectors, which are key sectors of the Japanese economy.

Market share: 5% (estimated, 2025)
Assets under management (AUM): 8 billion USD (2025)
Expense ratio: 0.48% (2025)

The WisdomTree Japan Hedged Equity Fund (DXJ) provides investors with access to Japanese stocks while hedging the currency risk of the Yen against the US Dollar. This represents a significant competitive advantage as many investors seek such hedged products during times of currency fluctuations.

The fund has differentiated itself from other ETFs through its specific strategy focusing on dividend growth and currency hedging. This strategy has helped it secure a stable market share and build a substantial AUM.

The expense ratio of 0.48% is competitive compared to similar funds, making it attractive to cost-conscious investors. Overall, the DXJ offers a solid competitive advantage in the Japan ETF space through its specialized investment strategy and cost structure.

Institutional Investor Share: approximately 70% (estimated, 2025)

Insider Buys/Sells: No significant insider transactions reported (2025)

The institutional investor share in the WisdomTree Japan Hedged Equity Fund is estimated to be around 70%. This reflects the interest of institutional investors looking for diversified international investment opportunities while hedging currency risks.

Regarding insider transactions, no significant buys or sells are known in 2025. This could indicate that there are no major changes in insiders' confidence in the fund's future performance.

Market share of DXJ: Estimate 3-5% (2025)

Top competitors and their market shares:

1. iShares MSCI Japan ETF (EWJ) - Estimate 10-12%
2. JPMorgan BetaBuilders Japan ETF (BBJP) - Estimate 8-10%
3. Xtrackers MSCI Japan Hedged Equity ETF (DBJP) - Estimate 6-8%
4. Franklin FTSE Japan ETF (FLJP) - Estimate 5-7%
5. Invesco CurrencyShares Japanese Yen Trust (FXY) - Estimate 4-6%

The WisdomTree Japan Hedged Equity Fund (DXJ) has a moderate market share compared to its competitors. The main advantage of DXJ lies in its currency hedging, which allows investors to invest in Japanese stocks without being exposed to the risk of exchange rate fluctuations. This can be seen as a certain moat, especially for investors seeking protection against currency risks.

However, some competitors, such as the iShares MSCI Japan ETF (EWJ), have a larger market share and offer broader diversification without currency hedging. This could be more attractive to investors who are counting on long-term currency gains or do not want to incur additional hedging costs.

Overall, DXJ has a specific advantage due to its currency hedging, but the moat is not as pronounced as with some larger ETFs that offer broader market presence and diversification.

Fund assets: $4.5 billion (2025) Annual return (last 3 years): 8.2% Management fee: 0.48%

The WisdomTree Japan Hedged Equity Fund (DXJ) offers investors the opportunity to invest in Japanese stocks while minimizing currency risk by hedging the yen against the US dollar. This is particularly attractive for investors who are interested in the growth prospects of the Japanese economy but want to avoid the risk of currency fluctuations.

In recent years, the fund has achieved an average annual return of 8.2%, indicating a solid performance of the underlying Japanese stocks. The management fee of 0.48% is competitive compared to other international funds, making the fund attractive from a cost perspective as well.

Additionally, the fund benefits from Japan's economic recovery and structural reforms that support the country's growth potential. Hedging against currency risks provides additional protection in a volatile foreign exchange market.

Overall, the DXJ could be a good investment for investors interested in a diversified international investment strategy, especially if they expect a positive development in the Japanese economy.

Dividend Yield: 2.5% (estimate for 2025)

The WisdomTree Japan Hedged Equity Fund (DXJ) is known for its regular dividend payouts. Historically, the fund has achieved a dividend yield of around 2.5%. These payouts are relatively reliable as they are based on the dividends of the Japanese companies included in the fund.

The fund follows a strategy aimed at minimizing currency risks, which supports the stability of the payouts. Therefore, investors can expect a stable dividend yield in the future as well, unless significant economic changes occur in Japan or the global market.