Top ETFs Track the Nikkei 225 Index: Lowest Fees and alternatives

Exchange-Traded Funds tracking the Nikkei 225 index provide exposure to Japan’s premier blue-chip companies. These instruments are primarily traded on major exchanges like the Tokyo Stock Exchange and NYSE Arca, offering access to leading Japanese corporations. Such funds serve as portfolio internationalization tools, providing exposure to Asia’s second-largest economy.

Nikkei 225 ETFs represent the full breadth of Japan’s corporate landscape, mirroring 225 top-tier stocks across various sectors. The main advantages of Nikkei 225 ETF investing include:

• Japanese market concentration: Direct exposure to leaders in automotive, technology, and consumer goods sectors within a single economy.
• Portfolio diversification: Low correlation with some developed markets provides international allocation benefits.
• Currency exposure management: Choice between JPY-denominated funds and USD-traded ADRs, with select hedged options available.

The dominance of established funds is evidenced by market adoption: Nomura Asset Management’s Nikkei 225 ETF (1320.T) and iShares Nikkei 225 ETF (1321.T) rank among the largest listings in Japan, while MAXIS Nikkei 225 ETF (EWJ) leads non-Japanese listings. Large-cap focused funds represent nearly all Nikkei 225 ETF assets under management. Investing through these ETFs efficiently accesses Japan’s corporate benchmark comprising manufacturers, financial institutions, and consumer-focused enterprises. Certain ETF variations offer distinct strategic benefits.

Using currency-hedged share classes such as Xtrackers’ JPY-Hedged Nikkei 225 ETF (XNJP) mitigates FX volatility, while global listings offer alternative trading hours for international investors.

This explains why Japanese equity allocations feature in most global diversification strategies among institutional portfolios. Although traditional index ETFs are predominant, niche variations provide alternative dividend approaches like the Next Funds Nikkei 225 High Dividend Yield ETF (2035.T). Standard ETFs remain dominant with unhedged JPY versions representing approximately 90% of retail investments, supplemented by USD-traded equivalents and rare hedged alternatives addressing currency risk concerns.

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The following table contains a comprehensive list of the most accessible Nikkei 225 ETFs, primarily traded on Japanese and U.S. exchanges. These include funds with different share classes, such as accumulating and distributing, and various dividend policies, currency and hedging options and fees.