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

The Xtrackers Nikkei225 UCITS ETF1D (XETRA:XDJP) is designed to track the Nikkei Stock Average Index, a benchmark that represents the performance of Japans stock market, specifically the 225 most liquid stocks listed on the Tokyo Stock Exchanges First Section. The indexs composition is periodically reviewed to ensure it remains representative of the Japanese market, with a focus on liquidity and sector balance.

The Nikkei 225 index is a price-weighted index that has a long history of reflecting the Japanese economys performance. The index has undergone significant changes over the years, with a current composition that is heavily weighted towards large-cap stocks in the consumer goods, automotive, and technology sectors. The indexs liquidity assessment involves evaluating stocks based on their trading volume and price fluctuations over the preceding five years, ensuring that the index remains a reliable benchmark for the Japanese market.

To replicate the Nikkei 225 index, the Xtrackers Nikkei225 UCITS ETF1D employs a physical replication strategy, where the fund holds a substantial number of the indexs constituent stocks in the same proportion as their weighting in the index. This approach is managed by Deutsche Asset Management (UK) Limited, which ensures that the funds holdings are aligned with the indexs composition.

Analyzing the funds technical data, we can observe that the current price is 23.87, with a 20-day simple moving average (SMA) of 23.85, indicating a relatively stable short-term trend. The 50-day SMA is 23.08, while the 200-day SMA is 24.16, suggesting a potential resistance level. The average true range (ATR) is 0.31, or 1.28%, indicating moderate volatility. Given the current price is near the 20-day SMA, and the 52-week high and low are 25.67 and 20.49, respectively, we can forecast that the price will likely continue to consolidate around the current level in the short term.

Combining the technical analysis with fundamental data, we note that the funds assets under management (AUM) are approximately 157.79 billion EUR, indicating a significant presence in the market. Considering the Nikkei 225 indexs historical performance and the current economic environment, we can forecast that the XDJP ETF will likely follow the indexs trend. If the Japanese economy continues to recover, and the Nikkei 225 index breaks through its 52-week high, the XDJP ETF could potentially reach new highs, driven by the underlying stocks performance.