This is an actively managed Japanese equity ETF in which the manager directly selects stocks from Japan-listed companies. Rather than mechanically replicating an index, it decides its holdings and weightings through in-house research.

It suits investors who want concentrated exposure to the Japanese market and prefer active stock selection over index tracking.

It is an ETF managed by Lazard using an active (actively managed) approach.

The fund builds its portfolio by selecting, from among Japan-listed companies, the stocks that meet the manager's research criteria. Instead of replicating an index, it adjusts weightings actively based on factors such as valuation and earnings growth, and it aims to outperform the market.

• Active stock selection approach
• Concentrated exposure to the Japanese market

Assets under management (AUM) stand at $83.3M, and the expense ratio is 0.60% per year.

Unlike passive Japan ETFs that track an index, the manager's discretion has a large effect on performance, and fees are correspondingly higher than those of passive funds.

Performance varies with the direction of the Japanese stock market and the results of stock selection, and the fund tends to be sensitive to the value of the yen and to global risk appetite. Because of its active management, it can move differently from the index.

Fund flows shift with investor interest in the Japanese market and the direction of the yen. As a relatively small category, liquidity may be more limited than that of large index-based ETFs.

Its strength is the potential to outperform through active stock selection, while its weaknesses are the fee burden and its dependence on the management team.

For investors who want the same Japanese equity exposure, passive alternatives that track an index include EWJ, BBJP, and FLJP. These hold broad Japanese indexes as they are, without stock selection, and tend to have lower fees. DXJ and HEWJ, which apply currency hedging during periods of yen weakness, are also worth considering. Meanwhile, the three funds compared in the table, FEOE, GEME, and FWD, differ in investment region and theme, but they share one thing in common: they are active ETFs in which the manager selects stocks instead of tracking an index.

These are the points to review before investing in this ETF. Because it is an active Japanese equity ETF that selects stocks rather than tracking an index, it is advisable to check the fee level, the management approach, and the yen-dollar exchange rate exposure before making an investment decision.

If its stock selection underperforms the market, the fund may lag index-based ETFs, and movements in the yen and the Japanese economy directly affect performance. Because its size is modest, liquidity should also be checked.

This is an active ETF worth considering for investors who want to approach the Japanese market through active stock selection. If cost and simple index exposure are the priority, passive alternatives such as EWJ and BBJP may be more suitable.