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. The extensive scope of the recall has raised questions about Toyota’s futures sales and reputation for quality.
Since the recall announcement, TM declined 16% before partially recovering in yesterday’s trading.
Several exchange traded funds focus on Japanese equities and typically have Toyota Motor as a number one or two holding.
The PowerShares FTSE RAFI Japan Portfolio (PJO) tracks the performance of the largest Japanese equities and has 5.3% of its portfolio allocated to Toyota Motor.
Other Japan ETFs with large Toyota Motor exposure include the SPDR Russell-Nomura PRIME Japan ETF (JPP) (3.5% allocation), MSCI Japan Index Fund (EWJ) (5.8% allocation), and the WisdomTree Japan Total Dividend Fund (DXJ) (3.8% allocation).