(HJAP) HSBC MSCI Japan Climate - Ratings and Ratios

The HSBC MSCI Japan Climate Paris Aligned UCITS ETF (XETRA:HJAP) is an exchange-traded fund that tracks the Morningstar Japan TME NR JPY index, providing investors with exposure to Japanese large-cap equities while aligning with climate goals set by the Paris Agreement.

By investing in this ETF, investors gain access to a diversified portfolio of Japanese companies that are screened for their climate-related performance, ensuring alignment with the Paris Agreements objectives. The funds underlying index is designed to minimize the carbon footprint of the portfolio while maintaining a risk profile similar to that of the broader Japanese market.

Analyzing the ETFs technical data, we observe a current price of 13.60, slightly above its 20-day simple moving average (SMA) of 13.51, indicating a potential short-term uptrend. The 50-day SMA at 13.17 is below the current price, further supporting this bullish signal. However, the 200-day SMA at 13.70 may act as a resistance level in the long term. The Average True Range (ATR) of 0.16, or 1.15%, suggests moderate volatility.

Considering the fundamental data, the Assets Under Management (AUM) stand at 10.52 million EUR, indicating a relatively small but still viable fund size. This could potentially impact liquidity, but the ETFs listing on XETRA, a major European exchange, helps mitigate this concern.

Forecasting based on both technical and fundamental data, we can anticipate that HJAP may continue its short-term uptrend, potentially testing the 52-week high of 14.39. However, investors should be cautious of the potential resistance at the 200-day SMA. Long-term investors may view the current price as an opportunity to accumulate positions, anticipating that the funds climate-aligned strategy will attract more capital in the future, potentially driving up the price. Conversely, a decline below the 50-day SMA could signal a reversal, warranting a more cautious approach.