Nikkei ETF

The JPX-Nikkei 400 is a relatively new market index. Established in 2013 it contains 400 publicly traded stocks of large Japanese companies. I am a big fan of new indices, old ones often hold on to some peculiar rules or let themselves be dominated by a few big companies.

The Dow Jones for instance encompasses some old mammoth companies and the Dutch AEX is overweighed in 5 to 10 company stocks. The modern indices have made up their rules and regulations with a view on the ultimate investor.

That is another way of telling that they only want to include the winner-stocks within their indices. The main aim is to let these indices flourish and that is always good news for index investors.

With the composition of the JPX-Nikkei 400 market index they went to great lengths to make sure that the investors’ interests were fully met. The rules are made in a way that an average increase always outperforms that of other Japanese market indices.

It goes without saying that this is precisely the reason that I chose this particular Nikkei ETF for trading the Japanese markets. Of course there is a downside to this Nikkei market index, its short history does not give you ample data to make your decisions upon, but the advantages outweigh this setback.

Lyxor JPX-Nikkei 400 (DR) UCITS ETF

In trading the JPX-Nikkei 400 I opted for an Nikkei ETF of Lyxor. It is quoted in Euro’s at the Paris stock exchange and it is a physical ETF which means they are buying the underlying stocks.

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