Broker: iFAST Financial Pte Ltd
Date of Report: 21 May 2026
Excerpt from iFAST Financial Pte Ltd report
Report Summary
- Top Pick: Xtrackers Nikkei 225 UCITS ETF 1D (LSE: XDJP)
- Action: Maintain exposure to Japanese equities through XDJP. It is recommended as the most cost-efficient instrument for broad Nikkei 225 access.
- Main Ideas:
- Japanese equities are up about 20% YTD, driven by strong export growth, especially in semiconductors.
- Key structural drivers: Bank of Japan (BOJ) policy normalisation, ongoing corporate governance reform (only 15–20% complete), and diversified exposure to global AI infrastructure.
- XDJP stands out among Nikkei 225 ETFs for its lowest expense ratio (0.09%), smallest tracking difference (-0.39% over 2 years), and highest liquidity.
- Top holdings like Advantest, Tokyo Electron, and Fanuc provide direct exposure to Japan’s leadership in semiconductors, AI, robotics, and advanced manufacturing.
- Implications:
- Investors seeking direct, cost-effective, and liquid access to Japanese equities should focus on XDJP for broad Nikkei 225 exposure and to benefit from Japan’s structural growth drivers.
above is an excerpt from a report by iFAST Financial Pte Ltd. Clients of iFAST Financial Pte Ltd can be the first to access the full report from the iFAST Financial Pte Ltd website : https://secure.fundsupermart.com/fsmone/policies/328125/investment-account-terms-&-conditions
