What does the expense ratio mean for ETF investors?

The expense ratio is the annual fee charged by a fund to cover management and operational costs, expressed as a percentage of your investment. For EWJ, it is 0.49%, while FLJP charges 0.09%. This 0.40 percentage point difference means FLJP costs less to hold annually. Lower fees generally improve net returns, assuming similar performance, as they reduce the drag on investment growth. Investors should consider this ongoing cost when evaluating long-term holdings, as small fee differences can compound significantly over time. This information is for educational purposes and does not constitute financial advice.

How do ETFs track Japanese equity markets?

ETFs track specific indexes by holding the underlying stocks in proportions that mirror the index. EWJ and FLJP both provide exposure to Japanese equities but may track different indexes. The provided data indicates that the specific indexes tracked by both funds are not available, so direct comparison of their tracking methods or underlying composition cannot be made. Generally, tracking accuracy is reflected in how closely the ETF's performance matches its target index. Differences in index construction can lead to varying portfolio compositions even when both funds are marketed for Japan exposure. This information is educational and not investment advice.

What is a dividend yield in an ETF context?

A dividend yield indicates the annual cash payouts from an ETF relative to its price, expressed as a percentage. EWJ offers a 3.62% yield, while FLJP provides a higher 4.06%. This difference of 0.44 percentage points means FLJP currently pays more in distributions per dollar invested. Dividend yields vary based on the fund's holdings and distribution policies. A higher yield does not guarantee total returns, as share prices may fluctuate. Investors should consider yield alongside other factors like fees and tracking. This information is for educational purposes and is not a recommendation to buy or sell.

How do the fees of EWJ and FLJP compare?

EWJ charges an expense ratio of 0.49%, whereas FLJP charges 0.09%, making FLJP 0.40 percentage points cheaper to hold annually. This fee difference could result in FLJP retaining more of its returns for investors, assuming the underlying market performance is identical. Lower expenses are generally preferred in cost-conscious investing as they help maximise net returns over longer time horizons. However, fees are just one element of an ETF comparison. Investors should also consider factors like fund size, tracking index, and distribution yields. This information is educational and does not constitute financial advice.

Which ETF has better liquidity?

EWJ has net assets of $23.1 billion, significantly larger than FLJP's $4.1 billion. Generally, a larger asset base can support better trading liquidity, meaning EWJ may offer tighter bid-ask spreads, especially during normal market conditions. While FLJP's size is still substantial, investors seeking large-scale trading activity might find EWJ more liquid. However, liquidity can vary based on trading volume and market conditions, so these are general observations. It is essential to monitor both assets and actual trading patterns. This comparison is for educational purposes and does not constitute financial advice or a recommendation.

What is the track record of each fund?

EWJ has been operating since March 12, 1996, offering over 30 years of history and performance data for Japanese equities. In contrast, FLJP was launched on November 2, 2017, providing less historical data for evaluation. EWJ's long track record may offer more insight into how it tracks the market over different cycles, while FLJP has a shorter history. When considering an investment, a longer track record can provide more confidence but should be evaluated alongside current expenses, yields, and overall portfolio fit. This information is educational and not investment advice.

Do EWJ and FLJP hold the same top stocks?

The data indicates that EWJ and FLJP do not share any of their top 10 holdings, implying significant differences in their portfolio compositions. Since specific top holdings for either fund are unavailable, a direct comparison of their stock selections cannot be made. This lack of overlap in known top 10 holdings suggests that investors could have varying exposure to different Japanese companies depending on which fund they choose. The index tracking methodology for both is also unavailable, further complicating a detailed comparison. This information is for educational purposes and not investment advice.

What are the key risks of investing in Japan ETFs?

Investing in Japan equity ETFs exposes funds to the performance of the Japanese stock market, which is influenced by economic cycles, government policies, and global trade trends. Currency risk is also present, as fluctuations between the Japanese yen and the investor's home currency can impact returns. While EWJ and FLJP provide diversified access to Japanese equities, they remain subject to these broader market risks. Specific risks such as sector concentration or holdings are not disclosed in the provided data. Investors should consider these general market factors. This information is educational and does not constitute advice.

How does fund size affect investment decisions?

Fund size can impact investment decisions through liquidity and stability. EWJ's $23.1 billion in assets may offer more stability and tighter bid-ask spreads due to higher trading volumes. FLJP, with $4.1 billion, is still substantial and likely provides reasonable liquidity for most retail investors. The choice may depend on an investor's specific trading needs and whether they prioritise the potential benefits of a larger fund size. It is important to remember that fund size alone does not guarantee better performance or lower volatility. This information is for educational purposes and is not a recommendation.

What is the practical difference in holding costs?

EWJ's expense ratio of 0.49% is higher than FLJP's 0.09%, resulting in an annual holding cost difference of 0.40 percentage points. For example, on a theoretical $10,000 investment, this would mean paying $49 to hold EWJ versus $9 for FLJP. These costs are deducted from fund assets and reduce net returns. Over time, this cost differential can compound significantly. Investors should consider these ongoing expenses alongside other factors like yields and liquidity when making decisions. This information is for educational purposes and does not constitute investment advice.

EWJ vs FLJP

Two funds, one decision: we compare cost, performance and what each ETF actually holds in October 2026.

This comparison examines EWJ and FLJP for Japan stock exposure, detailing expense ratios of 0.49% and 0.09%, dividend yields of 3.62% and 4.06%, net assets, and shared holdings. Note that top holdings, sector weights, and index tracking specifics are currently not available. Educational content, not financial advice.

This comparison examines EWJ and FLJP for Japan stock exposure, detailing expense ratios of 0.49% and 0.09%, dividend yields of 3.62% and 4.06%, net assets, and shared holdings. Note that top holdings...

Fund Snapshot

Key Fund Metrics

EWJ

Metric

FLJP

0.49%

Expense Ratio

0.09%

3.62%

Dividend Yield

4.06%

$23.15B

Net Assets

$4.06B

174

Holdings

481

Mar 12, 1996

Inception Date

Nov 2, 2017

–

Index Tracked

–

Japan Stock

Fund Category

Japan Stock

FLJP costs about $40.00 less per year for every $10,000 invested.

Shared Top Holdings

These funds do not share any of their top holdings.

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Investment Analysis

EWJ

Pros

The fund has operated since March 1996, providing a long historical record of tracking Japanese equity markets.
With net assets of $23.1 billion, the large fund size may help reduce bid-ask spreads in normal market conditions.
The reported dividend yield of 3.62% indicates a meaningful income component for investors seeking regular cash distributions.

Considerations

The expense ratio of 0.49% is relatively high for a broad Japan equity ETF and increases annual holding costs.
Top holdings are not available, so concentration within the largest Japanese companies cannot be assessed from the supplied data.
Sector weights are not available, preventing an evaluation of diversification across industries or exposure to specific sector trends.

FLJP

Pros

The expense ratio of 0.09% is substantially lower than the comparator and may improve net returns through reduced annual fees.
With net assets of $4.1 billion, the fund has a sizeable asset base that may support reasonable trading liquidity.
The reported dividend yield of 4.06% is higher than the comparator and may attract investors focused on income generation.

Considerations

The fund’s inception date in November 2017 provides less historical tracking evidence than an ETF launched in 1996.
Issuer information is not available, so aspects of fund governance or service quality cannot be verified from the supplied data.
Top holdings and sector weights are not available, limiting any assessment of index concentration or geographic diversification.

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About EWJ and FLJP

EWJ (EWJ)

FLJP (FLJP)

The Franklin FTSE Japan ETF offers investors a straightforward way to gain exposure to the Japanese equity market. Designed for those interested in diversifying their portfolios beyond domestic stocks, this fund holds a broad basket of companies operating within Japan. With a low expense ratio of 0.09%, it aims to provide cost-efficient access to major sectors such as automotive, technology, and financial services. The ETF typically generates income through dividends, currently showing a yield of 4.06%. While investing in foreign markets can enhance diversification, it also introduces specific risks, including currency fluctuations and differing economic cycles. As with any investment, the value of shares can go down as well as up, and returns are not guaranteed.

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EWJ vs FLJP

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Investment Analysis

EWJ

Pros

Considerations

FLJP

Pros

Considerations

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Frequently asked questions

Fund Snapshot

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