(XNJP) Xtrackers Nikkei 225 1D - Ratings and Ratios

The Xtrackers Nikkei225 UCITS ETF1D is designed to mirror the performance of the Nikkei Stock Average Index, a benchmark that tracks the Japanese stock markets 225 most prominent stocks listed on the Tokyo Stock Exchanges First Section. The indexs composition is periodically reviewed to ensure it remains representative of the market, with a focus on liquidity and sector balance.

The Nikkei225 Index is constructed using a price-weighted methodology, where the stocks with higher prices have a greater influence on the indexs performance. The indexs constituents are reviewed and rebalanced periodically to maintain its relevance and accuracy in reflecting the Japanese stock markets performance. The liquidity assessment involves evaluating the trading volume and price fluctuations of the constituent stocks over the preceding five years.

The Xtrackers Nikkei225 UCITS ETF1D, managed by Deutsche Asset Management (UK) Limited, employs a replication strategy to track the Nikkei225 Index. This involves holding a representative sample of the indexs constituent stocks in proportion to their weighting in the index. The funds assets under management (AUM) stand at approximately 211.4 billion JPY, indicating a significant presence in the market.

From a technical analysis perspective, the ETFs current price is 3948.00, with short-term and long-term moving averages indicating a potential bullish trend. The 20-day SMA is at 3903.35, while the 50-day SMA is at 3751.58, suggesting a positive crossover. The 200-day SMA is at 3901.98, indicating a strong support level. The Average True Range (ATR) is 37.48, representing a daily volatility of 0.95%. Given the current technical setup, we can expect the ETF to continue its upward trajectory, with potential resistance at the 52-week high of 4310.74.

Combining the technical analysis with fundamental data, we forecast that the Xtrackers Nikkei225 UCITS ETF1D will continue to perform in line with the Nikkei225 Index, driven by the Japanese stock markets underlying trends. With the indexs focus on liquidity and sector balance, we expect the ETF to remain a reliable proxy for investors seeking exposure to the Japanese equity market. As the Japanese economy continues to evolve, the ETF is likely to benefit from the countrys structural reforms and growth initiatives, potentially driving the ETFs price towards the 52-week high.