EWJ

iShares MSCI Japan ETF (EWJ) is an exchange-traded fund that seeks to track the performance of the MSCI Japan Index, which consists of large- and mid-cap companies in the Japanese equity market. The ETF is managed by BlackRock and trades under the ticker EWJ on NYSE Arca.

Classified as an international equity ETF focused exclusively on Japan, EWJ aims to reflect, before fees and expenses, the performance of the securities included in its benchmark index.

The fund follows a passive management strategy, maintaining a portfolio designed to replicate the composition and weighting of the MSCI Japan Index through direct investment in eligible securities.

The MSCI Japan Index is weighted by free-float-adjusted market capitalization, assigning greater weight to companies with larger market value within the Japanese market. The index undergoes periodic reviews, including additions, removals, and rebalancing, which are reflected in the ETF’s holdings.

Diversification and sector exposure

EWJ provides broad exposure to the Japanese equity market, including companies across sectors such as:

• Industrials.

• Information technology.

• Consumer discretionary.

• Financials.

• Health care.

• Materials.

The composition reflects the predominant sector structure of Japan’s equity market.

Structure and costs

EWJ shares trade on the secondary market, while creation and redemption occur through authorized participants, a mechanism designed to help keep the ETF’s market price aligned with its net asset value (NAV).

The fund charges a management fee and does not apply a performance fee. EWJ distributes income periodically, primarily in the form of dividends received from the underlying portfolio companies.

History and evolution of the ETF

iShares MSCI Japan ETF was launched in 1996 during a period of increasing global market integration and growing demand for exposure to developed economies outside the United States.

In recent years, EWJ has reflected significant developments in the Japanese market, including prolonged accommodative monetary policy, notable movements in the Japanese yen, and corporate governance reforms. 

The recent strength in Japanese equities has been associated with structural reforms, corporate earnings recovery, and renewed interest from foreign investors.