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

The Xtrackers Nikkei225 UCITS ETF1D (XDJP) is designed to track the Nikkei Stock Average Index, a benchmark representing the performance of Japans stock market, specifically the 225 most liquid stocks listed on the Tokyo Stock Exchanges First Section.

The Nikkei Stock Average Index is reviewed periodically to ensure it remains representative of the Japanese market, with a focus on liquidity and sector balance. The index constituents are selected based on their trading volume and price fluctuations over the preceding 5 years, aiming to maintain long-term continuity and reflect changes in industry structure.

The XDJP ETF attempts to replicate the Nikkei Stock Average Index by holding a substantial number of the indexs constituent shares in the same proportion as the index. The fund is managed by Deutsche Asset Management (UK) Limited.

From a performance perspective, key metrics to consider include the ETFs tracking error, which measures its ability to replicate the indexs performance. A lower tracking error indicates a more effective replication. Additionally, the ETFs expense ratio, which is not provided, is an essential metric to evaluate its cost-effectiveness. The AUM of 157791.66M EUR indicates a substantial investor base, which can contribute to liquidity and potentially lower trading costs.

To further evaluate XDJP, one could examine its dividend yield, which can provide insight into its income-generating potential. The ETFs historical returns, including its performance during different market conditions, can also be analyzed to assess its potential for long-term growth. Furthermore, comparing XDJPs performance to that of its peers and the broader Japanese market can help investors determine its relative attractiveness.