The iShares JPX-Nikkei 400 ETF (JPXN) is an exchange-traded fund designed to track the performance of Japanese companies selected based on profitability, quality, and corporate governance criteria. The ETF is managed by BlackRock and trades under the ticker JPXN on the NYSE Arca.

Classified as a single-country international equity ETF, the fund provides exposure to large-, mid-, and small-cap Japanese companies. Its strategy focuses on businesses that meet specific financial and governance standards established by the benchmark, distinguishing it from traditional market-cap-weighted indexes.

The ETF follows a passive management approach and seeks to replicate the performance of the JPX-Nikkei Index 400, a benchmark composed of 400 Japanese companies selected based on factors such as return on equity (ROE), profitability, liquidity, and corporate governance standards.

Diversification and sector exposure

JPXN provides exposure primarily associated with:

• Japanese companies.

• Technology.

• Industrials.

• Consumer discretionary.

• Financial services.

• Healthcare.

• Corporate governance.

• Japanese equity market.

The portfolio includes companies across multiple sectors of the Japanese economy, including industrial manufacturers, technology firms, automobile companies, financial institutions, and consumer-oriented businesses.

The ETF's performance reflects the Japanese equity market while emphasizing companies with stronger operational efficiency and corporate governance practices.

Structure and costs

JPXN shares trade on the secondary market on the NYSE Arca during regular trading hours. Share creation and redemption occur through authorized participants, a mechanism intended to help align the ETF's market price with its net asset value (NAV).

The fund charges a management fee as outlined in its prospectus and does not apply a performance fee. Dividends received from portfolio holdings may be distributed periodically to shareholders according to the fund's distribution policy.

History and evolution of the ETF

The iShares JPX-Nikkei 400 ETF was launched in 2014, shortly after the introduction of the JPX-Nikkei Index 400, which was created to encourage stronger corporate governance and improved capital efficiency among Japanese companies.

Since inception, the fund has provided international investors with access to Japanese companies selected on the basis of financial quality and governance characteristics rather than market capitalization alone.

In recent years, Japan's corporate governance reforms, Bank of Japan monetary policy, the country's economic outlook, and global demand for Japanese industrial and technology products have continued to shape the performance of the companies represented in the ETF's portfolio.

Additional Information

iShares JPX-Nikkei 400 ETF (United States) is an exchange-traded fund (ETF), with assets under management totaling $135.65 million.

Over the past 12 months, iShares JPX-Nikkei 400 ETF recorded a return of 27.67%, with its price trading between $81.46 and $102.14 during the same period.

The ETF is traded under the ticker JPXN.