WisdomTree Japan Hedged Equity Fund (DXJ)

DXJ: Japanese Equities Remain Attractive; Positive Carry Enhances The Appeal

WisdomTree Japan Hedged Equity Fund ETF is rated a buy, offering currency-neutral exposure to Japanese equities with positive carry from hedging operations while underlying Japanese equities remain attractive. DXJ provides incremental yield by hedging USD/JPY exposure, benefiting from current interest rate differentials, and mitigating currency risk for USD-based investors. Japanese equities remain moderately valued, with structural reforms improving ROE and capital efficiency, though recent price appreciation has narrowed the valuation gap.