Be wary of fund outflows and carry transaction failures from Japanese stock ETF with yen hedging
2024/8/13 8:11 JST (some excerpts)
Wisdom Tree's “DXJ” is the biggest spill since 2018 on a weekly basis
The movement to withdraw funds spreads due to additional interest rate hikes by the Bank of Japan, appreciation of yen, and depreciation of Japanese stocks
There is a growing movement to withdraw funds from exchange-traded funds (ETFs) that invest in Japanese stocks while hedging the volatility of yen exchange rates among investors who are frightened by the effects brought about by the failure of yen carry trade.
According to Bloomberg's aggregated data, the “Wisdom Tree Japan Hedged Equity Fund (DXJ)” recorded a fund outflow of over 400 million dollars (about 59 billion yen) last week, which is the largest since 2018. Also, it was shown in IHS Markit data that the short sale ratio has risen to a high level since May.
Wisdom Tree's “DXJ” is the biggest spill since 2018 on a weekly basis
The movement to withdraw funds spreads due to additional interest rate hikes by the Bank of Japan, appreciation of yen, and depreciation of Japanese stocks
There is a growing movement to withdraw funds from exchange-traded funds (ETFs) that invest in Japanese stocks while hedging the volatility of yen exchange rates among investors who are frightened by the effects brought about by the failure of yen carry trade.
According to Bloomberg's aggregated data, the “Wisdom Tree Japan Hedged Equity Fund (DXJ)” recorded a fund outflow of over 400 million dollars (about 59 billion yen) last week, which is the largest since 2018. Also, it was shown in IHS Markit data that the short sale ratio has risen to a high level since May.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
