
Japan's stock market is performing strongly in 2026, driven by corporate reforms, a cautious Bank of Japan, and a weak yen. Investors can choose between the iShares MSCI Japan ETF (EWJ), which is unhedged and offers broad exposure, and the WisdomTree Japan Hedged Equity Fund (DXJ), which hedges currency risk and favors exporters benefiting from a weak yen. For European exposure, the SPDR EURO STOXX 50 ETF (FEZ) provides focused access to the Eurozone's largest blue-chip companies, excluding the UK and Switzerland, and benefits from monetary easing and fiscal stimulus. Choosing between these funds depends on investors' views on the yen and preference for Eurozone-focused versus broader developed market exposure.