It is a passive country ETF that tracks an index of undervalued Japanese large- and mid-cap stocks, selected based on price relative to book value, price relative to forward earnings, and dividend yield. It diversifies broadly across Japanese value stocks.

It suits country- and style-diversified investors who want low-cost, diversified exposure to value stocks in the Japanese market.

It is an ETF managed by iShares using a passive (index-tracking) approach.

The ETF tracks an index that screens Japanese stocks for undervaluation using three measures (price relative to book value, price relative to forward earnings, and dividend yield) and holds them in proportion to market capitalization. The index is rebalanced every quarter and follows the performance of Japanese large- and mid-cap value stocks as a whole.

• Exposure to Japanese value stocks selected with three value metrics
• Diversification across the Japanese value style at a low fee

Assets under management (AUM) stand at $767.7M, and the total expense ratio is 0.15% per year.

Unlike broad Japan ETFs, it leans toward the value style, so performance can diverge between periods when value stocks lead and periods when growth stocks lead.

The Japanese stock market is influenced by the yen exchange rate, the global economy, and the trend of improving corporate governance. Value stocks tend to show relative strength during periods of rising interest rates or economic recovery, but they can lag in growth-led markets.

Inflows tend to arrive when interest in Japanese equities and preference for the value style are rising, and fund flows can shift when the yen strengthens or risk aversion intensifies.

Its strength is diversified exposure to Japanese value stocks at a low fee, while its weaknesses are single-country concentration, currency exposure and style bias.

This ETF is distinguished by its focus on Japanese value stocks. To invest broadly across the Japanese market, you can also compare EWJ, a flagship Japan ETF, DXJ, which holds Japanese stocks with yen currency hedging, and BBJP, for low-cost Japan exposure. They differ in style, currency hedging and fees, so it is best to choose according to your investment goals.

Here are the points to review before investing in EWJV. As a Japan value ETF, it is important to check currency exposure, style bias, country concentration and the fee level in advance.

Because it is concentrated in a single country, it depends heavily on the Japanese economy and the yen exchange rate, and its value-style bias means it can lag relatively in growth-led markets. Investors holding won also bear the impact of yen exchange rate fluctuations.

It is a passive ETF suited to investors who want low-cost, diversified exposure to value stocks in the Japanese market. To invest across Japan as a whole, a broad Japan ETF may be the better fit, while EWJV can be an alternative for those who want to focus on the value style.