DXJS Profile
The WisdomTree Japan Hedged SmallCap Equity Fund is meticulously crafted to provide investors with targeted exposure to the Japanese equity market while mitigating currency risk. Under normal market conditions, the fund invests at least 80% of its total assets in the securities that comprise its underlying index, as well as in other investments that have economic characteristics substantially similar to those of the index’s components. This strategic allocation ensures that the fund aligns closely with its investment objectives.
The index tracked by the fund is a dividend-weighted index that focuses on Japanese small-cap equities. It is designed to capture the performance of small-cap companies in Japan, which are typically characterized by growth potential and value opportunities. A key feature of this index is its hedging strategy, which aims to neutralize the impact of fluctuations in the Japanese yen relative to the U.S. dollar. This currency-hedging mechanism helps to reduce the volatility that can arise from exchange rate movements, providing investors with a more stable investment experience.
By concentrating on dividend-weighted securities, the index prioritizes companies that have a strong track record of paying dividends. This approach not only seeks to deliver potential income through dividends but also focuses on small-cap companies with robust growth prospects. The fund’s strategy involves investing in a broad range of small-cap stocks that meet these criteria, thereby enhancing its ability to capture emerging opportunities within Japan’s dynamic small-cap sector.
Operating as a non-diversified fund, the WisdomTree Japan Hedged SmallCap Equity Fund maintains a concentrated focus on the selected index and its constituent securities. This concentrated approach allows the fund to closely mirror the index’s performance while benefiting from the currency-hedging strategy. Investors gain access to a curated selection of small-cap Japanese equities with minimized currency risk, aligning with their goal of capturing growth potential in the Japanese market without exposure to yen fluctuations.
|
