The eye-popping gains in U.S. technology stocks have made the S&P 500 the envy of the world. But another market has quietly logged similar returns over the past decade, is cheaper, and is primed for further gains: Japan.
Japan’s benchmark Nikkei 225 NIK 0.29% has returned 217% over the past decade in yen terms—118% for U.S. dollar–based investors who were unhedged. That isn’t far from the S&P 500’s 237% gain, yet Japan hasn’t drawn nearly the same attention from investors.
The Nikkei’s recent record high— surpassing a level last hit in 1989, before the country’s asset bubbles burst and the economy sank into a deflationary spiral—leaves investors wondering if it’s too late to get in. The short answer is no.
JPMorgan Japan Small Cap Growth & Income (LONJSGI), targets Japan income without compromising on Japanese growth opportunities. This Japan income investing opportunity gives investors access to a diverse and fast growing sector managed by local managers.