After Reviewing Every International Developed Market ETF These 3 Cover Japan and Europe Better Than Anything Else

The article argues that three ETFs best capture developed-market opportunities outside the U.S.: EWJ for broad Japan exposure, DXJ for a currency-hedged Japan trade, and FEZ for concentrated Eurozone blue chips. The key market driver is currency: a weak yen has made DXJ dramatically outperform EWJ, while Japan’s corporate governance reforms and cautious BOJ support equities. On Europe, FEZ is presented as a focused bet on Eurozone megacaps such as ASML, benefiting from ECB easing, German fiscal spending, and improving earnings prospects. The piece’s main takeaway is that investors should choose between unhedged versus hedged Japan exposure based on their yen view, and use FEZ for a cleaner Eurozone allocation rather than broader Europe funds that dilute the thesis.