Key Highlights

  • IJP tracks the MSCI Japan Net TR index and is one of the larger Japan-focused funds examined here, with net Assets of $1.54 billion.
  • The fund has traded on ASX since 10 October 2007, carries a management fee of 0.50 percent, and reported 11,533,934 units on issue.
  • The portfolio is broadly diversified across 174 companies, with the top ten holdings representing only 30.07 percent of total assets.

The iShares MSCI Japan ETF (ASX:IJP) seeks to achieve its objective by tracking the performance of the MSCI Japan Net TR Index in Australian dollars, providing broad-based exposure to companies domiciled in Japan. Admitted to ASX trading on 10 October 2007, IJP is among the longest-established funds within the Equity Japan category and carries a management fee of 0.50 percent per annum.

The fund reported net assets of $1.54 billion and 11,533,934 units on issue, making it one of the larger funds by scale among the Japanese and broader Asian equity vehicles examined here. Risk metrics show a Beta of 1.02 and a Standard Deviation of 14.37, both figures suggesting a portfolio profile closely aligned with broader market movements and comparatively moderate historical variability. The fund's Turnover ratio was recorded at 1.28 percent, consistent with its passive index-tracking structure.

Sector Composition and Portfolio Diversification

IJP's sector allocation is led by Industrials at 22.92 percent, close to the category average of 26.14 percent, followed by Technology at 21.51 percent, nearly matching the category's 21.63 percent. Financial Services stands at 19.10 percent, above the category average of 17.84 percent, while Consumer Cyclical at 11.61 percent and Communication Services at 9.33 percent sit close to and above their respective category figures of 11.72 percent and 7.52 percent.

Geographic exposure is entirely concentrated in Japan at 100.00 percent, matching the category average precisely. The fund held 99.84 percent of assets in equities and 0.16 percent in cash, with no bond exposure reported.

Holdings, Returns and Distributions

Reflecting its broad index-based structure, IJP's top ten holdings account for only 30.07 percent of total assets across 174 companies, indicating a comparatively diversified profile. Mitsubishi UFJ Financial Group is the largest position at 4.63 percent, followed by Toyota Motor Corp at 3.53 percent and Sumitomo Mitsui Financial Group at 2.98 percent. Tokyo Electron, Advantest Corp, Recruit Holdings, Hitachi, Sony Group, Mizuho Financial Group and SoftBank Group complete the remaining top ten names.

The fund declared a final distribution of $2.094 per unit, producing an annual distribution Yield of 5.02 percent, with an ex-date of 1 July 2026 and payment date of 13 July 2026.

Key Takeaways

IJP offers investors broad, index-based access to the Japanese equity market through a diversified portfolio of 174 companies, with sector exposure closely aligned to its category and a scale that positions it among the larger Japan-focused funds examined here. The fund distinguished itself through positive total returns across every measured time frame, from one month through to three years, alongside a comparatively elevated distribution yield.