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.

0.05% p.a. - 0.51% p.a.
annual total expense ratio (TER) of Japan ETFs
on the Japanese stock market, which are tracked by ETFs
on the Japanese stock market
 
The best indices for Japan ETFs

Performance of Japanese stocks (MSCI Japan)

1 month: 4.81%
1 year: 17.05%
3 years: 16.58%
5 years: 40.27%
 

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 4,952 0.12% p.a. Accumulating Ireland Optimized sampling
Amundi MSCI Japan UCITS ETF AccLU1781541252 3,120 0.12% p.a. Accumulating Luxembourg Full replication
Vanguard FTSE Japan UCITS ETF DistributingIE00B95PGT31 2,159 0.15% p.a. Distributing Ireland Full replication
Xtrackers MSCI Japan UCITS ETF 1CLU0274209740 1,930 0.12% p.a. Accumulating Luxembourg Full replication
Xtrackers Nikkei 225 UCITS ETF 1DLU0839027447 1,712 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 1,100 0.12% p.a. Distributing Ireland Optimized sampling
Vanguard FTSE Japan UCITS ETF AccumulatingIE00BFMXYX26 844 0.15% p.a. Accumulating Ireland Full replication
UBS ETF (LU) MSCI Japan UCITS ETF (JPY) A-disLU0136240974 700 0.12% p.a. Distributing Luxembourg Full replication
iShares MSCI Japan UCITS ETF USD (Acc)IE00B53QDK08 662 0.12% p.a. Accumulating Ireland Full replication
SPDR MSCI Japan UCITS ETFIE00BZ0G8B96 573 0.12% p.a. Accumulating Ireland Optimized sampling
Amundi Japan TOPIX II UCITS ETF EUR DistFR0010245514 446 0.45% p.a. Distributing France Full replication
iShares Nikkei 225 UCITS ETF (Acc)IE00B52MJD48 363 0.48% p.a. Accumulating Ireland Full replication
Amundi MSCI Japan UCITS ETF DistLU2090063673 283 0.12% p.a. Distributing Luxembourg Full replication
Amundi Japan Topix UCITS ETF EURLU1681037609 268 0.20% p.a. Accumulating Luxembourg Unfunded swap
iShares Core MSCI Japan IMI UCITS ETF USD (Dist)IE00BFM15T99 184 0.12% p.a. Distributing Ireland Optimized sampling
Amundi Prime Japan UCITS ETF DR (C)LU2089238385 164 0.05% p.a. Accumulating Luxembourg Full replication
Xtrackers Nikkei 225 UCITS ETF 1CLU2196470426 162 0.09% p.a. Accumulating Luxembourg Full replication
iShares Nikkei 225 UCITS ETF (DE)DE000A0H08D2 157 0.51% p.a. Distributing Germany Full replication
HSBC MSCI Japan UCITS ETF USDIE00B5VX7566 150 0.12% p.a. Distributing Ireland Full replication
Invesco JPX-Nikkei 400 UCITS ETFIE00BPRCH686 118 0.19% p.a. Accumulating Ireland Unfunded swap
Amundi JPX Nikkei 400 UCITS ETF EUR (C)LU1681038912 70 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 56 0.50% p.a. Distributing Germany Full replication
Amundi JPX Nikkei 400 UCITS ETF JPYLU1681039050 39 0.18% p.a. Accumulating Luxembourg Unfunded swap
Invesco MSCI Japan UCITS ETF AccIE00B60SX287 10 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® -0.88% 1.91% -1.58% 14.31% 11.20%
FTSE Japan -1.06% 1.95% -1.80% 14.54% 11.41%
MSCI Japan IMI -0.91% 2.26% -1.50% 14.55% 10.49%
Solactive GBS Japan Large & Mid Cap -1.30% 1.70% -1.92% 14.89% 12.74%
MSCI Japan -1.49% 1.10% -2.24% 15.09% 12.13%
JPX-Nikkei 400 -1.08% 2.15% -0.05% 16.49% 13.78%
Nikkei 225® -0.49% 3.70% -3.20% 19.50% 9.85%
Index   2024
in %
2023
in %
2022
in %
2021
in %
2020
in %
MSCI Japan IMI 10.61% 14.73% -10.97% 9.79% 3.62%
FTSE Japan 10.79% 15.36% -10.69% 9.50% 4.43%
TOPIX® 10.89% 14.53% -10.61% 8.62% 2.48%
MSCI Japan 11.45% 15.56% -11.93% 10.03% 5.15%
Solactive GBS Japan Large & Mid Cap 11.50% 15.34% -10.89% 10.03% 4.67%
JPX-Nikkei 400 12.13% 15.12% -10.31% 8.47% 4.31%
Nikkei 225® 12.32% 17.41% -14.72% 3.60% 13.80%

Source: justETF.com; As of 30.09.24; Calculations in EUR based on the largest ETF of the respective index.

 

The cheapest Japan ETFs
by total expense ratio (TER)

Show all

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 717 0.64% p.a. Accumulating Ireland Optimized sampling
Xtrackers MSCI Japan UCITS ETF 4C - EUR HedgedLU0659580079 462 0.40% p.a. Accumulating Luxembourg Full replication
iShares MSCI Japan USD Hedged UCITS ETF (Acc)IE00BCLWRG39 366 0.64% p.a. Accumulating Ireland Optimized sampling
Amundi Japan Topix UCITS ETF Daily Hedged EUR (C)LU1681037864 217 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 134 0.40% p.a. Distributing Luxembourg Full replication
UBS ETF (LU) MSCI Japan UCITS ETF (hedged to EUR) A-accLU1169822266 96 0.15% p.a. Accumulating Luxembourg Full replication
Amundi Japan TOPIX II UCITS ETF EUR Hedged DistFR0011475078 92 0.45% p.a. Distributing France Full replication
Amundi JPX Nikkei 400 UCITS ETF Daily Hedged EUR (C)LU1681039134 78 0.18% p.a. Accumulating Luxembourg Unfunded swap
Amundi MSCI Japan UCITS ETF EUR Hedged DistLU2133056387 77 0.20% p.a. Distributing Luxembourg Full replication
Vanguard FTSE Japan UCITS ETF EUR Hedged AccumulatingIE00BFMXYY33 35 0.20% p.a. Accumulating Ireland Full replication
SPDR MSCI Japan EUR Hedged UCITS ETFIE00BZ0G8C04 26 0.17% p.a. Accumulating Ireland Optimized sampling
Amundi Japan Topix UCITS ETF Daily Hedged USDLU1681037948 23 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) -2.24% -8.48% -4.75% 14.52% 57.32%
MSCI Japan (USD Hedged) -2.92% -9.22% -5.65% 15.24% 57.30%
TOPIX® (EUR Hedged) -1.43% -4.68% -2.10% 19.11% 42.89%
FTSE Japan (EUR Hedged) -1.89% -5.15% -2.80% 19.26% 43.07%
MSCI Japan (EUR Hedged) -2.10% -5.35% -2.87% 19.95% 43.63%
MSCI Japan (CHF Hedged) -2.57% -4.00% -0.46% 20.00% 57.83%
JPX-Nikkei 400 (EUR Hedged) -1.74% -4.62% -0.88% 21.33% 46.21%
Nikkei 225® (EUR Hedged) -1.21% -3.74% -4.22% 24.36% 41.09%
JPX-Nikkei 400 (GBP Hedged) 0.79% -1.33% 3.71% 29.40% 59.22%
Index   2024
in %
2023
in %
2022
in %
2021
in %
2020
in %
MSCI Japan (CHF Hedged) 12.11% 37.10% -0.50% 17.31% 7.23%
TOPIX® (USD Hedged) 15.35% 29.78% 4.65% 20.97% -2.82%
MSCI Japan (USD Hedged) 15.59% 29.82% 3.52% 21.61% 1.43%
TOPIX® (EUR Hedged) 15.82% 31.38% -3.85% 10.62% 5.41%
FTSE Japan (EUR Hedged) 15.86% 31.48% -4.65% 12.62% -
MSCI Japan (EUR Hedged) 16.27% 31.73% -5.32% 12.06% 7.56%
JPX-Nikkei 400 (EUR Hedged) 17.27% 32.10% -3.84% 10.69% 7.10%
Nikkei 225® (EUR Hedged) 17.40% 33.87% -8.38% 5.24% 16.20%
JPX-Nikkei 400 (GBP Hedged) 25.31% 36.76% -7.67% 19.12% 2.57%

Source: justETF.com; As of 30.09.24; 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 2,021 0.20% p.a. Accumulating Ireland Full replication
iShares MSCI Japan ESG Screened UCITS ETF USD (Acc)IE00BFNM3L97 1,251 0.15% p.a. Accumulating Ireland Optimized sampling
iShares MSCI Japan SRI UCITS ETF USD (Acc)IE00BYX8XC17 648 0.20% p.a. Accumulating Ireland Full replication
L&G Japan Equity UCITS ETFIE00BFXR5T61 407 0.10% p.a. Accumulating Ireland Full replication
iShares MSCI Japan ESG Screened UCITS ETF USD (Dist)IE00BFNM3M05 374 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 253 0.58% p.a. Distributing Ireland Optimized sampling
iShares MSCI Japan SRI UCITS ETF USD (Dist)IE00BGDQ0V72 105 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 1.57% 7.14% 2.75% 12.49% 4.54%
MSCI Japan ESG Screened -1.59% 0.81% -2.67% 14.39% 9.93%
MSCI Japan Select ESG Screened -1.49% 0.97% -2.36% 14.43% 9.95%
MSCI Japan SRI Select Reduced Fossil Fuels -1.03% 4.18% 3.06% 14.46% 1.82%
Solactive Core Japan Large & Mid Cap -1.12% 2.01% -1.27% 15.49% 12.44%
MSCI Japan Low Carbon SRI Leaders -1.28% 4.55% 3.60% 21.24% 8.06%
Index   2024
in %
2023
in %
2022
in %
2021
in %
2020
in %
MSCI Japan Small Cap 9.31% 9.08% -7.21% 5.38% -2.01%
MSCI Japan SRI Select Reduced Fossil Fuels 9.43% 9.24% -13.25% 9.63% 6.47%
MSCI Japan ESG Screened 10.12% 15.61% -12.25% 9.68% 5.86%
MSCI Japan Select ESG Screened 10.75% 14.80% -12.22% 9.08% 4.79%
Solactive Core Japan Large & Mid Cap 11.77% 15.56% -11.13% 9.94% 4.81%
MSCI Japan Low Carbon SRI Leaders 14.18% 14.13% -15.64% 7.27% 8.93%

Source: justETF.com; As of 30.09.24; Calculations in EUR based on the largest ETF of the respective index.