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Japan Equity ETF (DBJP) Hits New 52-Week High

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Investors seeking momentum may have Xtrackers MSCI Japan Hedged Equity ETF (DBJP - Free Report)  on radar now. The fund recently hit a new 52-week high. Shares of DBJP are up approximately 57% from their 52-week low of $29.38/share.

But could there be more gains ahead for this ETF? Let’s take a look at the fund and the near-term outlook to get a better idea of where it might be headed.

DBJP in Focus

The underlying MSCI Japan US Dollar Hedged Index provides exposure to Japanese equity markets, while at the same time mitigating exposure to fluctuations between the value of the U.S. dollar and Japanese yen. The expense ratio is 0.46% (see all Asia-Pacific (Developed) ETFs here).

Why the move?

Japan stocks are on a tear of late. Japan stocks hit a three-decade high after Trump signed stimulus bill. U.S. President Donald Trump signed a $2.3 trillion financial aid and spending bill which includes unemployment benefits to millions, stimulus checks to households. The deal also averts a partial federal government shutdown. Meanwhile, Europe launched a mass Covid-19 vaccination drive on Sunday. All these developments boosted risk-on sentiments and benefited the fund.

More Gains Ahead?

The fund has a positive weighted alpha of 15.80. So, there is a decent outlook ahead for those who want to ride this surging ETF a shade further.

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