Is DXJ a safe investment?

**DXJ's safety as an investment** appears to be influenced by a combination of factors, including its expense ratio, performance trends, currency hedging mechanism, and the broader geopolitical and market environment. 1. **Expense Ratio**: DXJ has an expense ratio of 0.48%, which is relatively low and suggests efficient management costs. Lower expense ratios typically contribute to higher returns on investment. DXJ Expense Ratio, Top 10 Holdings |code|etf code|etf name|Last Price|Last Change|Holding Code|Holding Name|Holding Weight|Expense Ratio|market_code| |---|---|---|---|---|---|---|---|---|---| |DXJ|DXJ.P|WisdomTree Japan Hedged Equity Fund|120.37|4.705985|8306.T|Mitsubishi Ufj|4.75|0.48|169| |DXJ|DXJ.P|WisdomTree Japan Hedged Equity Fund|120.37|4.705985|7203.T|TOYOTA MOTOR|4.51|0.48|169| |DXJ|DXJ.P|WisdomTree Japan Hedged Equity Fund|120.37|4.705985|8316.T|Sumitomo Mitsui Financial Group|3.04|0.48|169| |DXJ|DXJ.P|WisdomTree Japan Hedged Equity Fund|120.37|4.705985|2914.T|JAPAN TOBACCO|2.93|0.48|169| |DXJ|DXJ.P|WisdomTree Japan Hedged Equity Fund|120.37|4.705985|7267.T|Honda Motor|2.79|0.48|169| |DXJ|DXJ.P|WisdomTree Japan Hedged Equity Fund|120.37|4.705985|7974.T|Nintendo|2.71|0.48|169| |DXJ|DXJ.P|WisdomTree Japan Hedged Equity Fund|120.37|4.705985|8058.T|Mitsubishi|2.63|0.48|169| |DXJ|DXJ.P|WisdomTree Japan Hedged Equity Fund|120.37|4.705985|8411.T|Mizuho Financial|2.52|0.48|169| |DXJ|DXJ.P|WisdomTree Japan Hedged Equity Fund|120.37|4.705985|4502.T|Takeda|2.1399999999999997|0.48|169| |DXJ|DXJ.P|WisdomTree Japan Hedged Equity Fund|120.37|4.705985|8766.T|Tokio Marine|2.1|0.48|169| 2. **Performance Trends**: - DXJ has shown positive performance over various short and medium-term periods, with a 30-day percentage change of 6%, a 60-day percentage change of 11.59%, and a 90-day percentage change of 10.63%. - The ETF's average true range (ATR) over the last 30 days is 1.42, indicating moderate volatility. |code|Ticker|Name|Date|Percentage Change|market_code| |---|---|---|---|---|---| |DXJ|DXJ.P|WisdomTree Japan Hedged Equity Fund|20250723|4.705985|169| |code|Ticker|Name|market_code| |---|---|---|---| |DXJ|DXJ.P|WisdomTree Japan Hedged Equity Fund|169| 3. **Currency Hedging**: DXJ is designed to hedge exposure to fluctuations between the U.S. dollar and the yen. This mechanism can help mitigate currency risks but does not eliminate them entirely. Investors should consider their own currency exposure needs and the potential impact of currency movements on their investment. 4. **Market and Geopolitical Environment**: The ETF's performance is also influenced by broader market conditions and geopolitical factors. For instance, recent news of a "massive" trade deal between the U.S. and Japan could positively impact Japanese equities, including those in DXJ's portfolio. However, global economic and political uncertainties can affect the fund's performance. 5. **Dividend Frequency**: DXJ distributes dividends quarterly, which may be suitable for investors who prefer regular income distributions but could be less attractive for those who need more frequent cash flows. In conclusion, while DXJ offers a relatively low expense ratio and has shown positive performance, investors should consider their risk tolerance, investment horizon, and specific financial goals. The ETF's currency hedging mechanism provides some protection but does not guarantee absolute safety. As with any investment, it's important to conduct a thorough analysis and consider all relevant factors before making investment decisions.