Xtrackers MSCI Japan Hedged Equity ETF(AMEX:DBJP)

DBJP tracks a currency-hedged version of the popular MSCI Japan Index. DBJP hedges out the currency exposure inherent in investing in its underlying equities, which results in pure equity exposure that sidesteps the yen's volatility. The fund enters into forward currency contracts which hedges the JPY to the USD by selling JPY currency forwards at the one-month forward rate published by WM/Reuters. The fund tilts large due to its exclusion of small-caps, but its sector exposure is neutral, providing a comprehensive portfolio with minimal sector tilts. As much as possible DBJP uses full replication indexing, this strategy invests directly in the component securities while also using considerably the same weightings in which they are represented in the index.