WisdomTree Asset Management Canada (WisdomTree Canada) has introduced two new listed ETFs focused on two Asian countries. Both are listed on the TSX.
The WisdomTree Japan Equity Index ETF (JAPN and JAPN.B) seeks to track, to the extent possible, the price and yield performance of the WisdomTree Japan Equity Index CAD, before fees and expenses. It provides exposure to dividend-paying stocks with Japan and traded on the Tokyo Stock Exchange, particularly those that get less than 80% of their revenue from outside the Japanese market.
“Japan is a market that has been under-owned by investors for decades,” said Jeff Weniger, WisdomTree asset allocation strategist. “However, across developed market economies, it represents a compelling opportunity as the Japanese economy is poised for growth, corporate fundamentals remain strong, valuations are cheap relative to Canada, and the Bank of Japan is likely to remain accommodative.”
Meanwhile, the WisdomTree ICBCCS S&P China 500 Index ETF (CHNA.B) seeks to track, to the extent possible, the price and yield performance of the S&P China 500 Index CAD, before fees and expenses. The fund provides exposure to the S&P China 500 Index CAD, which takes the largest 500 eligible companies from the broader S&P Total China BMI Index. The fund’s underlying index provides significant exposure to listings in mainland China; around 48.5% of the index was invested in China A-shares as of June 30.
“The WisdomTree ICBCCS S&P China 500 Index ETF provides investors with the opportunity to efficiently access diverse sectors in one of the largest and fastest-growing economies in the world," Weniger said. "We expect to see China's economy expand further as the government increases integration efforts with global investors. Chinese equities are certainly an area where index-based concepts are in high demand."
Management fees stand at 0.51% for JAPN, which neutralizes exposure to fluctuations of the Japanese yen relative to the loonie; 0.48% for the non-hedged JAPN.B; and 0.55% for CHNA.B, which is also unhedged.
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