Know your Holdings: Sygnia Itrix MSCI Japan ETF

Japan is a G7 member and the third-largest economy in the world. The Japanese market is characterised by its high brand awareness and demanding consumers.

The Sygnia Itrix MSCI Japan ETF is an exchange-traded fund registered in South Africa to replicate the performance of the MSCI Japan Index. This free-float market capitalisation-weighted index tracks the performance of the large and mid-cap segments of the Japanese equity market.

The MSCI Japan Index comprises 237 constituents, selected based on their liquidity and market capitalisation. The constituents are weighted according to their free-float market capitalisation, which is the total number of shares available to the public for trading, less restricted shares.

Disclaimer: The holdings may not be limited to the logos on the image and may change. The use of logos are for educational purposes only.

As of writing, the top 10 holdings are Toyota Motor, Sony Group, Mitsubishi UFJ Financial Group, Keyence, Tokyo Electron, Mitsubishi, Hitachi, Sumitomo Mitsui Financial Group, Shin Etsu Chemical and Daiichi Sankyo.

Industrials make up the largest portion at 18.8%, followed by Consumer Discretionary at 14.0%, Information Technology at 11.9%, Financials at 8.8%, Health Care at 7.3%, Communication Services at 6.2%, Consumer Staples at 4.7%, and Materials at 4.7%, with the remaining allocation falling under the category of "Other."

What's moving markets.

Japan, like China, is emerging from lockdowns a bit later than other developed markets, suggesting there's room for growth to get back on track. This, along with increasing inflation, is expected to boost real wages, asset values, and pricing power, resulting in more significant economic improvements in Japan compared to the G10 countries. Additionally, Japanese equities have various factors that could potentially increase their value. 

The Tokyo Stock Exchange is making changes to improve corporate governance and returns for shareholders, while Japanese companies are actively working to make their shareholders happier by improving returns and reducing the gap between stock prices and their actual value.

These factors paint a promising picture of Japan's economic rebound and its stock market performance. Read the full market commentary for the first half of 2023 here. 

Dividends 

The Sygnia Itrix MSCI Japan ETF pays dividends bi-annually (twice a year). These dividends are typically distributed between January and July. The last dividend for this year was paid on July 17, 2023.