Best Japan ETFs (2026)
Which fund to use for Japanese equity exposure — 5 funds ranked on cost, yield, return, risk and ETFValuer's overall grade.
Every figure on this page is recalculated from market data each day, so the ranking reflects current conditions rather than whenever this page was written. Educational content — not financial advice.
Top Picks Right Now
- best risk-adjusted return (Sharpe 2.42)
- lowest volatility at 18.0%
- strongest 3-year return at +123.6%
- scores 71.9 on the overall model (grade B)
Ranked by ETFValuer's overall score. Recalculated every day from live market data — these positions change as the underlying numbers move.
At a Glance
Each superlative is measured within this group of 5 funds, not across the whole market.
All 5 Funds Ranked
| Fund | Category | Cost | Yield | 1Y | 3Y | Volatility | Max DD | Sharpe | AUM | Score | Grade |
|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 DXJWisdomTree Japan Hedged Equity Fund | Single Country - Developed | 0.48% | 0.97% | +48.6% | +123.6% | 18.0% | -22.2% | 2.42 | $7.1B | 76.4 | B+ |
| 2 FLJPFranklin FTSE Japan ETF | Single Country - Developed | 0.09% | 4.27% | +24.4% | +58.0% | 19.7% | -14.2% | 0.99 | $3.8B | 72.2 | B |
| 3 HEWJiShares Currency Hedged MSCI Japan ETF | Single Country - Developed | 0.49% | 3.71% | +43.8% | +104.6% | 20.0% | -20.9% | 1.94 | $725M | 71.9 | B |
| 4 BBJPJPMorgan BetaBuilders Japan ETF | Single Country - Developed | 0.19% | 4.69% | +23.1% | +56.0% | 20.2% | -14.5% | 0.89 | $17.6B | 70.7 | B |
| 5 EWJiShares MSCI Japan ETF | Single Country - Developed | 0.49% | 0.77% | +24.4% | +56.9% | 20.5% | -14.7% | 0.94 | $22.3B | 69.2 | B |
Max DD is the deepest peak-to-trough fall over the measurement window. Sharpe ratio measures return per unit of volatility — higher is better. Every figure is recalculated daily.
What Makes a Good Fund Here
The decisive choice in Japan is currency, not stock selection. Unhedged funds hand you the yen's moves alongside the equity return; hedged funds strip that out. In periods of sharp yen weakness the two have diverged by double digits, which dwarfs any fee difference.
The ETFValuer score blends trailing return, risk-adjusted return, expense ratio, maximum drawdown, fund size and volatility, each percentile-ranked against the full tracked universe, into a single 0-100 figure graded A+ to F. It is a systematic summary of past data, not a forecast — read it alongside the individual columns rather than instead of them.
Head-to-Head Comparisons
Full metric-by-metric breakdowns for the closest calls in this group.
Frequently Asked Questions
What is the best Japan ETF?
DXJ ranks highest of the 5 Japan funds tracked, with a score of 76.4 (B+). FLJP is the cheapest at 0.09%.
Should I buy a hedged or unhedged Japan ETF?
A currency-hedged fund removes yen exposure, so you get the Japanese market's return in dollar terms. Unhedged funds gain when the yen strengthens and lose when it weakens. Hedging costs a little and is a bet in its own right — neither choice is neutral.
Compare any of these funds directly
Side-by-side metrics, holdings overlap and return correlation for any pair.