Toyota Motor (TM) has taken a nose dive amid a massive recall leading Japan related ETFs lower. Toyota has recalled 2.3 million vehicles in the U.S. to fix a gas pedal problem.
WisdomTree announced that the WisdomTree Japan Total Dividend Fund (DXJ) will begin to hedge Japanese yen exposure. DXJ will provide the same broad exposure to the Japanese equity market but will seek to neutralize fluctuations in the yen against the U.S. dollar.
After four consecutive quarters of declining GDP, Japan’s recession is over. The world’s second largest economy reported that Q2 GDP grew an annualized 3.7% on the strength of exports and government stimulus spending.
U.S. investors have fully embraced the idea of diversifying their portfolios with international equities. However, investing outside the border of the U.S. exposes portfolios to currency fluctuations.