This is an actively managed ETF that invests most of its net assets in stocks of companies economically tied to Japan. It uses quantitative metrics and qualitative assessment together to select high-quality Japanese companies expected to deliver sustainable growth.

It suits investors who want exposure to the Japanese market but prefer active stock selection to simply tracking an index.

It is an actively managed ETF run by Neuberger Berman.

Focusing on companies economically tied to Japan, the fund selects stocks by combining quantitative metrics such as return on equity and margins with qualitative factors such as management capability and competitive standing within the industry. It also factors into its evaluation process the financial impact that ESG factors have on individual investments.

• Active management combining quantitative and qualitative analysis
• Selection of high-quality growth companies that reflects the financial impact of ESG

Assets under management (AUM) stand at $123.2M, and the total expense ratio is 0.50% per year.

The Japanese stock market has been shaped by the yen exchange rate, the global economy, and the ongoing improvement in Japanese corporate governance. Because the fund is actively managed, its performance depends on the management team's stock selection rather than on an index.

As interest in the Japanese market continues, actively managed Japan ETFs tend to attract capital from investors seeking differentiated stock selection. Fund flows fluctuate with the yen's movements and investor sentiment toward the Japanese market.

Its strengths are active stock selection and a high-quality growth approach, while its drawbacks are higher fees than passive funds, active management risk, and currency exposure.

Among the comparison ETFs shown in the table, products such as FNDF and GSIE cover broad international equities, products such as IGF cover global infrastructure, and products such as GNR and GUNR cover global natural resources. All of them are diversified passive products, a different kind of exposure from a single-market focus on Japan. For investors who want to concentrate on Japanese stocks, products such as EWJ and BBJP, which passively hold a broad range of large-cap Japanese stocks, can be lower-cost direct alternatives. Products such as DXJ, which add currency hedging to seek to benefit from a weaker yen, can also be considered.

Here are the points to review before investing in NBJP. Because it is an actively managed Japan ETF, it is prudent to check the cost burden, the management approach, the concentration in a single Japanese market, and the currency exposure in advance to support sound investment decisions.

Active management results may trail the index, and because the fund concentrates on a single market, Japan, short-term volatility can rise with the yen exchange rate and the Japanese economy. The cost burden is also higher than that of passive funds.

It is a fitting choice for investors who want to approach the Japanese market through active stock selection. If cost is the priority, consider passive Japan ETFs such as EWJ and BBJP. If you value active management and high-quality growth selection, you can consider this ETF.