FLJH: Japan Without The Yen Risk

Summary I rate the Franklin FTSE Japan Hedged ETF a buy, citing diversified holdings and effective yen risk mitigation. FLJH offers exposure to over 400 Japanese large- and mid-cap stocks, with a weighted average upside potential of 21.5% and a 1.7% dividend yield. Market reforms and Japan’s pivotal role in the global AI/data center supply chain support EPS growth and valuation upside. Key risks include geopolitical tensions and energy import costs, but FLJH’s currency hedge addresses yen depreciation concerns. SweetBunFactory/iStock via Getty Images Introduction Japan equities have been on a steady rise since the end of 2022, as, ironically, the COVID-induced supply chain inflation broke decades of domestic consumer stagnation, and at the same time, the Tokyo Stock Exchange began implementing corporate governance This article was written by Ricardo Fernandez 4.15K Followers Follow My goal, as a Seeking Alpha contributor, is to provide a fundamental view and analysis of companies and funds in a streamlined version of institutional research. The operating and financial forecast, whether my own or based on consensus, drives the valuation and ultimate rating. I like numbers (financial statements) and use words to explain their meaning and potential consequences. For the most part, my selection choices reflect what I believe can offer long-term potential, and I frequently take positions in many ideas for my personal account. I have more than 35 years of experience in the investment field, having worked as a sell &amp buy side analyst and portfolio manager for debt and equity funds. Analyst’s Disclosure: I/we have a beneficial long position in the shares of SNDK either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.