FLJP: Tariffs A Dark Cloud Over Automotive-Dominated Index
Portfolio Pulse from
The Franklin FTSE Japan ETF (FLJP) is heavily exposed to the automotive and industrial sectors, making it vulnerable to a stronger Yen and potential US tariffs. While the Yen is expected to strengthen due to robust Japanese consumption data, caution is advised against large-cap investments correlated to the Japanese index. Higher rates in Japan could benefit financials and the Yen but negatively impact export-reliant sectors like automotive.
November 18, 2024 | 8:45 pm
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The Franklin FTSE Japan ETF (FLJP) is at risk due to its heavy exposure to the automotive and industrial sectors, which are vulnerable to a stronger Yen and potential US tariffs.
FLJP is heavily weighted in sectors that are sensitive to currency fluctuations and trade policies. A stronger Yen could reduce competitiveness of Japanese exports, and US tariffs could further impact these sectors negatively, leading to potential short-term declines in FLJP's value.
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