EWJ tracks the MSCI Japan Index, which holds large and mid-cap Japanese companies across industrial, automotive, technology, financial and consumer sectors, weighted by market capitalization. Returns for US investors are affected by changes in the yen against the US dollar, since currency exposure is not hedged. Japan has a different market structure from the US, with large exporters, banks and trading companies, and corporate governance reforms have been a theme for investors. As a single-country fund, EWJ is less diversified than regional funds.
