How to Trade iShares MSCI Japan ETF (EWJ)

Japan was the world's second-largest economy in the 1980s, fueled by a massive bubble in real estate and equities. The Nikkei reached an ATH of 38,915 on December 29, 1989, before crashing over 80% within three years, leading to the 'Lost Decades' that still impact Japan today.

BlackRock's iShares launched EWJ (iShares MSCI Japan ETF) on March 12, 1996. It was one of the early single-country ETFs providing US investors with easy access to Japanese equities. EWJ remains the most popular Japan ETF with the largest AUM and tightest spreads.

Prime Minister Shinzo Abe announced 'Abenomics' in 2013, consisting of massive monetary easing from the BOJ. This led to a significant weakening of the Yen, causing EWJ to surge as Japanese exporters (Toyota, Sony, Canon) benefited from the weaker currency.

The Tokyo Stock Exchange issued a directive forcing listed companies trading below book value to improve capital efficiency or risk delisting. This led Japanese corporations to increase stock buybacks, dividends, and unwind cross-shareholdings. Warren Buffett's investment in Japanese trading houses further alerted global investors.

The Nikkei 225 surpassed 57,000 in early 2026 following the election of PM Takaichi of the LDP. EWJ achieved a 38.81% return over the past year. Capital inflows reached $1B in a single week in February 2026 as investors diversified from US equities amid tariff uncertainty.