WisdomTree has launched the WisdomTree Japan Dividend Growth Fund (JDG) on the NYSE Arca. JDG seeks to provide exposure to dividend-paying stocks of companies with growth characteristics that are incorporated in Japan.
The fund has a net expense ratio of 0.43 per cent.
With the goal of ending deflation and stimulating economic growth in Japan, Prime Minster Shinzo Abe has aggressively enacted his economic policies – known as Abenomics. After quickly launching two of the "three arrows": authorising stimulus spending and a quantitative easing program, the attention has turned to the third arrow: long-term structural reforms. Encompassed in Abe's third arrow is the goal of reforming the way Japanese companies operate by encouraging more competitive corporate practices
Abe's reform initiatives are designed to encourage companies to be better stewards of their financial capital. To this end, Japanese firms have been improving their quality metrics – most notably return on equity (ROE).
Jeremy Schwartz, WisdomTree Director of Research, says: "By focusing on Japanese companies that rank high on a combination of quality and growth factors – we believe the WisdomTree Japan Dividend Growth Fund (JDG) provides a tool to potentially benefit from the renewed focus on investor-friendly practices and shareholder returns. As companies focus on higher ROE, an increase in dividend growth may follow suit in the next few years."