How to invest in Japan using ETFs
How do I invest in Japanese stocks?
The easiest way to invest in the whole Japanese stock market is to invest in a broad market index. This can be done at low cost by using ETFs.
On the Japanese stock market you'll find 7 indices which are tracked by ETFs. Besides these indices 6 alternative indices on small and mid caps or equity strategies can be considered.
A speciality for ETFs on Japan is the large number of currency hedged ETFs that are available. In total there are 9 currency hedged indices tracked by 16 ETFs.
Performance of Japanese stocks (MSCI Japan)
1 month: -1.49%
1 year: 15.61%
3 years: 10.90%
5 years: 30.52%
Indices in comparison
The best indices for ETFs on Japan
For an investment in the Japanese stock market, there are 7 indices available which are tracked by 27 ETFs. On the FTSE Japan index there are 3 ETFs. On the JPX-Nikkei 400 index there are 3 ETFs. On the MSCI Japan index there are 11 ETFs. On the MSCI Japan IMI index there are 2 ETFs. On the Nikkei 225® index there are 4 ETFs. On the Solactive GBS Japan Large & Mid Cap index there are 2 ETFs. On the TOPIX® index there are 2 ETFs. The total expense ratio (TER) of ETFs on these indices is between 0.05% p.a. and 0.51% p.a..
| Index | Investment focus | Number of ETFs | Number of constituents | Short description |
|---|---|---|---|---|
FTSE Japan | Japan | 3 ETFs | 515 (31.08.23) | The FTSE Japan index tracks Japanese large and mid cap stocks. Index factsheet |
JPX-Nikkei 400 | Japan | 3 ETFs | 400 | The JPX-Nikkei 400 index tracks 400 Japanese stocks. The stocks are mainly selected by return on equity and cumulative operating profit. Index factsheet |
MSCI Japan | Japan | 11 ETFs | 198 (30.09.24) | The MSCI Japan index tracks leading Japanese stocks. Index factsheet |
MSCI Japan IMI | Japan | 2 ETFs | 1,088 (31.08.23) | The MSCI Japan IMI index tracks stocks from Japan. It covers securities across large, mid and small cap size segments. Index factsheet |
Nikkei 225® | Japan | 4 ETFs | 225 | The Nikkei 225® index tracks the 225 most actively traded stocks on the first section of the Tokyo Stock Exchange. Index factsheet |
Solactive GBS Japan Large & Mid Cap | Japan | 2 ETFs | 330 (31.08.23) | The Solactive GBS Japan Large & Mid Cap index tracks large and mid-cap securities from Japan. Index factsheet |
TOPIX® | Japan | 2 ETFs | 2,159 (31.08.23) | The TOPIX® index tracks a broad selection of Japanese stocks listed on the TSE First Section segment of Tokyo Stock Exchange. Index factsheet |
| ETF ISIN | Fund size in m EUR | TER in % | Use of profits | Fund domicile | Replication method | |
|---|---|---|---|---|---|---|
| iShares Core MSCI Japan IMI UCITS ETFIE00B4L5YX21 | 4,982 | 0.12% p.a. | Accumulating | Ireland | Optimized sampling | |
| Amundi MSCI Japan UCITS ETF AccLU1781541252 | 3,219 | 0.12% p.a. | Accumulating | Luxembourg | Full replication | |
| Vanguard FTSE Japan UCITS ETF DistributingIE00B95PGT31 | 2,050 | 0.15% p.a. | Distributing | Ireland | Full replication | |
| Xtrackers MSCI Japan UCITS ETF 1CLU0274209740 | 1,926 | 0.12% p.a. | Accumulating | Luxembourg | Full replication | |
| Xtrackers Nikkei 225 UCITS ETF 1DLU0839027447 | 1,427 | 0.09% p.a. | Distributing | Luxembourg | Full replication | |
| Amundi Prime Japan UCITS ETF DR (D)LU1931974775 | 1,219 | 0.05% p.a. | Distributing | Luxembourg | Full replication | |
| iShares MSCI Japan UCITS ETF (Dist)IE00B02KXH56 | 1,102 | 0.12% p.a. | Distributing | Ireland | Optimized sampling | |
| Vanguard FTSE Japan UCITS ETF AccumulatingIE00BFMXYX26 | 841 | 0.15% p.a. | Accumulating | Ireland | Full replication | |
| UBS ETF (LU) MSCI Japan UCITS ETF (JPY) A-disLU0136240974 | 698 | 0.12% p.a. | Distributing | Luxembourg | Full replication | |
| iShares MSCI Japan UCITS ETF USD (Acc)IE00B53QDK08 | 635 | 0.12% p.a. | Accumulating | Ireland | Full replication | |
| SPDR MSCI Japan UCITS ETFIE00BZ0G8B96 | 576 | 0.12% p.a. | Accumulating | Ireland | Optimized sampling | |
| Amundi Japan TOPIX II UCITS ETF EUR DistFR0010245514 | 430 | 0.45% p.a. | Distributing | France | Full replication | |
| iShares Nikkei 225 UCITS ETF (Acc)IE00B52MJD48 | 312 | 0.48% p.a. | Accumulating | Ireland | Full replication | |
| Amundi MSCI Japan UCITS ETF DistLU2090063673 | 279 | 0.12% p.a. | Distributing | Luxembourg | Full replication | |
| Amundi Japan Topix UCITS ETF EURLU1681037609 | 273 | 0.20% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| Amundi Prime Japan UCITS ETF DR (C)LU2089238385 | 190 | 0.05% p.a. | Accumulating | Luxembourg | Full replication | |
| iShares Core MSCI Japan IMI UCITS ETF USD (Dist)IE00BFM15T99 | 188 | 0.12% p.a. | Distributing | Ireland | Optimized sampling | |
| Xtrackers Nikkei 225 UCITS ETF 1CLU2196470426 | 158 | 0.09% p.a. | Accumulating | Luxembourg | Full replication | |
| HSBC MSCI Japan UCITS ETF USDIE00B5VX7566 | 155 | 0.12% p.a. | Distributing | Ireland | Full replication | |
| iShares Nikkei 225 UCITS ETF (DE)DE000A0H08D2 | 153 | 0.51% p.a. | Distributing | Germany | Full replication | |
| Invesco JPX-Nikkei 400 UCITS ETFIE00BPRCH686 | 117 | 0.19% p.a. | Accumulating | Ireland | Unfunded swap | |
| Amundi JPX Nikkei 400 UCITS ETF EUR (C)LU1681038912 | 68 | 0.18% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| Xtrackers MSCI Japan UCITS ETF 1DLU2581375230 | 63 | 0.12% p.a. | Distributing | Luxembourg | Full replication | |
| Deka MSCI Japan UCITS ETFDE000ETFL300 | 55 | 0.50% p.a. | Distributing | Germany | Full replication | |
| Amundi JPX Nikkei 400 UCITS ETF JPYLU1681039050 | 34 | 0.18% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| Invesco MSCI Japan UCITS ETF AccIE00B60SX287 | 11 | 0.12% p.a. | Accumulating | Ireland | Unfunded swap | |
| Franklin FTSE Japan UCITS ETF (Acc)IE000D0T0BO1 | 7 | 0.09% p.a. | Accumulating | Ireland | Full replication |
| Index | 1 month in % | 3 months in % | 6 months in % | 1 year in % | 3 years in % | |
|---|---|---|---|---|---|---|
| TOPIX® | -2.12% | -4.95% | 0.09% | 16.97% | 12.95% | |
| Solactive GBS Japan Large & Mid Cap | -2.13% | -3.88% | -0.22% | 17.67% | 14.31% | |
| MSCI Japan IMI | -1.50% | -4.16% | 1.10% | 18.33% | 13.31% | |
| FTSE Japan | -1.42% | -4.29% | 0.72% | 18.48% | 14.42% | |
| MSCI Japan | -1.63% | -4.85% | 0.06% | 18.49% | 14.25% | |
| JPX-Nikkei 400 | -2.35% | -5.26% | 0.70% | 19.51% | 15.31% | |
| Nikkei 225® | -0.98% | -1.61% | 3.69% | 23.86% | 13.43% |
| Index | 2024 in % | 2023 in % | 2022 in % | 2021 in % | 2020 in % | |
|---|---|---|---|---|---|---|
| TOPIX® | 8.54% | 14.53% | -10.61% | 8.62% | 2.48% | |
| MSCI Japan IMI | 8.95% | 14.73% | -10.97% | 9.79% | 3.62% | |
| Solactive GBS Japan Large & Mid Cap | 9.12% | 15.34% | -10.89% | 10.03% | 4.67% | |
| FTSE Japan | 9.21% | 15.36% | -10.69% | 9.50% | 4.43% | |
| JPX-Nikkei 400 | 9.50% | 15.12% | -10.31% | 8.47% | 4.31% | |
| MSCI Japan | 9.63% | 15.56% | -11.93% | 10.03% | 5.15% | |
| Nikkei 225® | 11.23% | 17.41% | -14.72% | 3.60% | 13.80% |
Source: justETF.com; As of 31.10.24; Calculations in EUR based on the largest ETF of the respective index.
The best Japan ETFs
by 1 year return
| 1 | Xtrackers Nikkei 225 UCITS ETF 1C | 23.88% |
| 2 | Xtrackers Nikkei 225 UCITS ETF 1D | 23.86% |
| 3 | iShares Nikkei 225 UCITS ETF (Acc) | 23.39% |
The cheapest Japan ETFs
by total expense ratio (TER)
| 1 | Amundi Prime Japan UCITS ETF DR (C) | 0.05% p.a. |
| 2 | Amundi Prime Japan UCITS ETF DR (D) | 0.05% p.a. |
| 3 | Franklin FTSE Japan UCITS ETF (Acc) | 0.09% p.a. |
Japan ETFs with hedged currency risk
Currency hedged investing in Japanese stocks is popular. In total, you can consider 9 currency hedged Japan indices tracked by 16 ETFs. The total expense ratio (TER) of ETFs on Japan indices with currency hedge is between 0.15% p.a. and 0.64% p.a..
| Index | Investment focus | Number of ETFs | Number of constituents | Short description |
|---|---|---|---|---|
| FTSE Japan (EUR Hedged) | Japan | 1 ETF | The FTSE Japan (EUR Hedged) index tracks Japanese large and mid cap stocks. Currency hedged to Euro (EUR). Index factsheet | |
| JPX-Nikkei 400 (EUR Hedged) | Japan | 2 ETFs | 400 | The JPX-Nikkei 400 Daily (EUR Hedged) index tracks 400 Japanese stocks. The stocks are mainly selected by return on equity and cumulative operating profit. Daily Currency hedged to Euro (EUR). Index factsheet |
| JPX-Nikkei 400 (GBP Hedged) | Japan | 1 ETF | 400 | The JPX-Nikkei 400 (GBP Hedged) index tracks 400 Japanese stocks. The stocks are mainly selected by return on equity and cumulative operating profit. Currency hedged to British Pound (GBP). Index factsheet |
| MSCI Japan (CHF Hedged) | Japan | 1 ETF | 272 (30.11.22) | The MSCI Japan (CHF Hedged) index tracks leading stocks on the Japanese market. Currency hedged to Swiss Francs (CHF). Index factsheet |
| MSCI Japan (EUR Hedged) | Japan | 5 ETFs | 237 (30.11.22) | The MSCI Japan (EUR Hedged) index tracks leading stocks on the Japanese market. Currency hedged to Euro (EUR). Index factsheet |
| MSCI Japan (USD Hedged) | Japan | 2 ETFs | 272 (30.11.22) | The MSCI Japan (USD Hedged) index tracks leading stocks on the Japanese market. Currency hedged to US Dollar (USD). Index factsheet |
| Nikkei 225® (EUR Hedged) | Japan | 1 ETF | 225 | The Nikkei 225® (EUR Hedged) index tracks the 225 most actively traded stocks on the first section of the Tokyo Stock Exchange. Currency hedged to Euro (EUR). Index factsheet |
| TOPIX® (EUR Hedged) | Japan | 2 ETFs | The TOPIX® (EUR Hedged) index tracks Japanese stocks on the TSE First Section segment of the Tokyo Stock Exchange, which comprises the largest market capitalisations. Currency hedged to Euro (EUR). | |
| TOPIX® (USD Hedged) | Japan | 1 ETF | The TOPIX® (USD Hedged) index tracks Japanese stocks on the TSE First Section segment of the Tokyo Stock Exchange, which comprises the largest market capitalisations. Currency hedged to US-Dollar (USD). |
| ETF ISIN | Fund size in m EUR | TER in % | Use of profits | Fund domicile | Replication method | |
|---|---|---|---|---|---|---|
| iShares MSCI Japan EUR Hedged UCITS ETF (Acc)IE00B42Z5J44 | 705 | 0.64% p.a. | Accumulating | Ireland | Optimized sampling | |
| Xtrackers MSCI Japan UCITS ETF 4C - EUR HedgedLU0659580079 | 455 | 0.40% p.a. | Accumulating | Luxembourg | Full replication | |
| iShares MSCI Japan USD Hedged UCITS ETF (Acc)IE00BCLWRG39 | 379 | 0.64% p.a. | Accumulating | Ireland | Optimized sampling | |
| Amundi Japan Topix UCITS ETF Daily Hedged EUR (C)LU1681037864 | 221 | 0.48% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| Xtrackers Nikkei 225 UCITS ETF 2D EUR HedgedLU1875395870 | 172 | 0.19% p.a. | Distributing | Luxembourg | Full replication | |
| iShares MSCI Japan CHF Hedged UCITS ETF (Acc)IE00B8J37J31 | 168 | 0.64% p.a. | Accumulating | Ireland | Optimized sampling | |
| Xtrackers MSCI Japan UCITS ETF 2D USD hedgedLU0927735406 | 140 | 0.40% p.a. | Distributing | Luxembourg | Full replication | |
| UBS ETF (LU) MSCI Japan UCITS ETF (hedged to EUR) A-accLU1169822266 | 95 | 0.15% p.a. | Accumulating | Luxembourg | Full replication | |
| Amundi Japan TOPIX II UCITS ETF EUR Hedged DistFR0011475078 | 88 | 0.45% p.a. | Distributing | France | Full replication | |
| Amundi MSCI Japan UCITS ETF EUR Hedged DistLU2133056387 | 79 | 0.20% p.a. | Distributing | Luxembourg | Full replication | |
| Amundi JPX Nikkei 400 UCITS ETF Daily Hedged EUR (C)LU1681039134 | 76 | 0.18% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| Vanguard FTSE Japan UCITS ETF EUR Hedged AccumulatingIE00BFMXYY33 | 29 | 0.20% p.a. | Accumulating | Ireland | Full replication | |
| SPDR MSCI Japan EUR Hedged UCITS ETFIE00BZ0G8C04 | 25 | 0.17% p.a. | Accumulating | Ireland | Optimized sampling | |
| Amundi Japan Topix UCITS ETF Daily Hedged USDLU1681037948 | 24 | 0.48% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| Invesco JPX-Nikkei 400 EUR Hedged UCITS ETFIE00BVGC6645 | 9 | 0.19% p.a. | Accumulating | Ireland | Unfunded swap | |
| Amundi JPX Nikkei 400 UCITS ETF Daily Hedged GBPLU1681039308 | 5 | 0.18% p.a. | Accumulating | Luxembourg | Unfunded swap |
| Index | 1 month in % | 3 months in % | 6 months in % | 1 year in % | 3 years in % | |
|---|---|---|---|---|---|---|
| TOPIX® (USD Hedged) | 5.15% | -2.38% | -0.40% | 23.83% | 68.99% | |
| TOPIX® (EUR Hedged) | 2.09% | -2.33% | 0.34% | 24.97% | 48.24% | |
| MSCI Japan (USD Hedged) | 5.84% | -2.18% | -0.36% | 25.49% | 69.51% | |
| MSCI Japan (CHF Hedged) | 2.75% | -1.39% | 3.00% | 26.10% | 60.94% | |
| FTSE Japan (EUR Hedged) | 2.42% | -2.41% | 0.35% | 26.11% | 49.74% | |
| MSCI Japan (EUR Hedged) | 2.69% | -2.04% | 0.37% | 26.58% | 49.41% | |
| JPX-Nikkei 400 (EUR Hedged) | 1.91% | -2.72% | 0.90% | 27.63% | 51.33% | |
| Nikkei 225® (EUR Hedged) | 2.84% | 0.23% | 3.01% | 31.63% | 48.49% | |
| JPX-Nikkei 400 (GBP Hedged) | 0.02% | -1.68% | 3.67% | 34.86% | 58.77% |
| Index | 2024 in % | 2023 in % | 2022 in % | 2021 in % | 2020 in % | |
|---|---|---|---|---|---|---|
| MSCI Japan (CHF Hedged) | 15.20% | 37.10% | -0.50% | 17.31% | 7.23% | |
| TOPIX® (EUR Hedged) | 18.24% | 31.38% | -3.85% | 10.62% | 5.41% | |
| FTSE Japan (EUR Hedged) | 18.66% | 31.48% | -4.65% | 12.62% | - | |
| MSCI Japan (EUR Hedged) | 19.40% | 31.73% | -5.32% | 12.06% | 7.56% | |
| JPX-Nikkei 400 (EUR Hedged) | 19.50% | 32.10% | -3.84% | 10.69% | 7.10% | |
| Nikkei 225® (EUR Hedged) | 20.73% | 33.87% | -8.38% | 5.24% | 16.20% | |
| TOPIX® (USD Hedged) | 21.30% | 29.78% | 4.65% | 20.97% | -2.82% | |
| MSCI Japan (USD Hedged) | 22.34% | 29.82% | 3.52% | 21.61% | 1.43% | |
| JPX-Nikkei 400 (GBP Hedged) | 25.33% | 36.76% | -7.67% | 19.12% | 2.57% |
Source: justETF.com; As of 31.10.24; Calculations in EUR based on the largest ETF of the respective index.
Alternative investment opportunities
Japan indices on small and mid caps or equity strategies
Alternatively, you may invest in indices on small and mid caps or equity strategies. In total, you can invest in 6 alternative indices on Japan tracked by 8 ETFs. The total expense ratio (TER) of ETFs on these alternative indices is between 0.10% p.a. and 0.58% p.a..
| Index | Investment focus | Number of ETFs | Number of constituents | Short description |
|---|---|---|---|---|
| MSCI Japan ESG Screened | Japan Social/Environmental | 2 ETFs | 232 (30.11.22) | The MSCI Japan ESG Screened index tracks Japanese companies. The index excludes companies that are involved in businesses related to thermal coal, controversial weapons, tobacco and other controversial industries. Index factsheet |
| MSCI Japan Low Carbon SRI Leaders | Japan Social/Environmental | 1 ETF | 113 (30.11.22) | The MSCI Japan Low Carbon SRI Leaders index tracks large- and mid-cap securities from Japan. Only companies with low carbon emissions and a high ESG (environmental, social and governance) rating are considered. The parent index is the MSCI Japan. Index factsheet |
| MSCI Japan SRI Select Reduced Fossil Fuels | Japan Social/Environmental | 2 ETFs | 52 (30.11.22) | The MSCI Japan SRI Select Reduced Fossil Fuels index tracks Japanese stocks considering only companies with very high Environmental, Social and Governance (ESG) ratings relative to their sector peers, to ensure the inclusion of the best of class companies from an ESG perspective and avoiding companies incompatible with values screen or having exposure to fossil fuels through extraction and production activities, power generation activities or reserves ownership. The weight of each company is capped to 5%. Index factsheet |
| MSCI Japan Select ESG Screened | Japan Social/Environmental | 1 ETF | 229 (30.11.22) | The MSCI Japan Select ESG Screened index tracks large and mid-cap securities of the Japanese equity markets. The stocks included are filtered according to ESG criteria (environmental, social and corporate governance). Excluded sectors and companies: weapons, tobacco, thermal coal, oil sands, non-compliance with UN Global Compact. Index factsheet |
| MSCI Japan Small Cap | Japan Small Cap | 1 ETF | 864 (30.09.24) | The MSCI Japan Small Cap index tracks Japanese small cap stocks. Index factsheet |
| Solactive Core Japan Large & Mid Cap | Japan Social/Environmental | 1 ETF | 330 (30.11.22) | The Solactive Core Japan Large & Mid Cap index tracks the Japanese market and measures the performance of large and mid-cap publicly traded which satisfy minimum criteria relating to liquidity and size and excludes companies: (a) engaged in pure coal mining; (b) involved in the production of controversial weapons, such as cluster weapons, anti-personnel mines or biological and chemical weapons; or (c) that, for a continuous period of three years, have been classified as being in breach of at least one of the UN Global Compact principles. Index factsheet |
| ETF ISIN | Fund size in m EUR | TER in % | Use of profits | Fund domicile | Replication method | |
|---|---|---|---|---|---|---|
| Xtrackers MSCI Japan ESG UCITS ETF 1CIE00BG36TC12 | 2,003 | 0.20% p.a. | Accumulating | Ireland | Full replication | |
| iShares MSCI Japan ESG Screened UCITS ETF USD (Acc)IE00BFNM3L97 | 1,313 | 0.15% p.a. | Accumulating | Ireland | Optimized sampling | |
| iShares MSCI Japan SRI UCITS ETF USD (Acc)IE00BYX8XC17 | 631 | 0.20% p.a. | Accumulating | Ireland | Full replication | |
| L&G Japan Equity UCITS ETFIE00BFXR5T61 | 409 | 0.10% p.a. | Accumulating | Ireland | Full replication | |
| iShares MSCI Japan ESG Screened UCITS ETF USD (Dist)IE00BFNM3M05 | 367 | 0.15% p.a. | Distributing | Ireland | Optimized sampling | |
| Xtrackers MSCI Japan ESG Screened UCITS ETF 1DIE00BPVLQD13 | 332 | 0.15% p.a. | Distributing | Ireland | Full replication | |
| iShares MSCI Japan Small Cap UCITS ETF (Dist)IE00B2QWDY88 | 273 | 0.58% p.a. | Distributing | Ireland | Optimized sampling | |
| iShares MSCI Japan SRI UCITS ETF USD (Dist)IE00BGDQ0V72 | 103 | 0.20% p.a. | Distributing | Ireland | Full replication |
| Index | 1 month in % | 3 months in % | 6 months in % | 1 year in % | 3 years in % | |
|---|---|---|---|---|---|---|
| MSCI Japan Small Cap | -3.02% | -2.94% | 2.89% | 14.05% | 5.84% | |
| MSCI Japan SRI Select Reduced Fossil Fuels | -2.67% | -4.52% | 3.31% | 17.17% | 2.66% | |
| MSCI Japan Select ESG Screened | -1.71% | -5.11% | -0.09% | 17.52% | 12.10% | |
| MSCI Japan ESG Screened | -1.13% | -4.67% | 0.66% | 18.57% | 13.10% | |
| Solactive Core Japan Large & Mid Cap | -1.21% | -4.05% | 1.56% | 19.74% | 15.60% | |
| MSCI Japan Low Carbon SRI Leaders | -1.07% | -2.33% | 7.23% | 25.74% | 10.22% |
| Index | 2024 in % | 2023 in % | 2022 in % | 2021 in % | 2020 in % | |
|---|---|---|---|---|---|---|
| MSCI Japan Small Cap | 6.01% | 9.08% | -7.21% | 5.38% | -2.01% | |
| MSCI Japan SRI Select Reduced Fossil Fuels | 6.50% | 9.24% | -13.25% | 9.63% | 6.47% | |
| MSCI Japan Select ESG Screened | 8.86% | 14.80% | -12.22% | 9.08% | 4.79% | |
| MSCI Japan ESG Screened | 8.88% | 15.61% | -12.25% | 9.68% | 5.86% | |
| Solactive Core Japan Large & Mid Cap | 10.41% | 15.56% | -11.13% | 9.94% | 4.81% | |
| MSCI Japan Low Carbon SRI Leaders | 12.96% | 14.13% | -15.64% | 7.27% | 8.93% |
Source: justETF.com; As of 31.10.24; Calculations in EUR based on the largest ETF of the respective index.