Japan – Excellent choice for both a holiday destination and an investment opportunity.

The US has long been the poster child of global markets, powered by innovation, scale, and liquidity. But in 2025, that dominance is starting to feel less certain. With Trump back in office and trade tensions flaring up once again, the investment landscape is shifting. It is no longer enough to rely on just one engine of growth.

For years, Japan has not been top of mind for global investors, given its past reputation for an economy plagued by deflation and low growth. However, that narrative is changing, and we believe Japan stands out as one of the most attractive long-term opportunities on the global stage.

The macro backdrop looks more sustainable than it has in decades. Inflation – long missing from the Japanese economy – has returned in a healthy way, helping to lift wages and support domestic demand. At the same time, corporate governance reforms are picking up pace. These reforms, now in their third year, are gaining traction with more companies stepping up capital spending, boosting dividends, and announcing share buybacks. Another underappreciated shift is Japan’s growing role in the semiconductor supply chains. These structural changes do not happen overnight, but they are laying the groundwork for a stronger, more resilient market in the years ahead.

Recommended Products

Investors seeking passive and diversified exposure to Japan can consider the Xtrackers Nikkei 225 UCITS ETF 1D (LSE:XDJP). With a low expense ratio of 0.09%, the ETF tracks the performance of the Japanese stock market, specifically the 225 stocks listed on the Tokyo Stock Exchange First Section.

The fund has broad sector exposure, with the biggest weights in technology, consumer discretionary, and industrials. These are areas closely tied to the domestic recovery and Japan’s role in global supply chains. Through this ETF, you are effectively investing in household names like Fast Retailing (Uniqlo’s parent company), Sony, and Nintendo.

*Returns in figure are in product currency terms

If you are seeking an active investment strategy, we recommend the Eastspring Investments – Japan Dynamic AS SGD and the Janus Henderson Horizon Japanese Smaller Companies A2 USD. The Eastspring fund takes a value-driven approach and invests across a range of company sizes, while the Janus Henderson fund focuses on identifying the most attractive opportunities within Japan’s small-cap universe. Both funds are available for investment via cash or the Supplementary Retirement Scheme (SRS).

	Xtrackers Nikkei 225 UCITS ETF 1D	Eastspring Investments – Japan Dynamic AS SGD	Janus Henderson Horizon Japanese Smaller Companies A2 USD
Benchmark	Nikkei 225 Index	MSCI Japan Index	Russell/Nomura Small Cap Index
Product Currency	GBP	SGD	USD
YTD Return	2.0%	3.4%	9.6%
3Y Annualised Return	9.9%	10.4%	4.6%
5Y Annualised Return	5.2%	12.4%	5.3%
Source: Bloomberg Finance L.P. Returns in SGD terms. Data as of 9 July 2025

LOW FLAT FEE on ETFs via FSMOne

FSMOne is the first in the industry to offer a low, flat fee for ETF investments. When you invest in US-listed ETFs through FSMOne, you’ll pay just a flat USD 3.80 processing fee — regardless of whether you invest $1,000 or $100,000.

Low flat fee of S$3.80 for SGX, US$3.80 for US exchanges, and HK$38 for HKEX

FSMOne ETF Regular Savings Plan

For investors who prefer a dollar cost averaging approach, FSMOne’s ETF Regular Savings Plan (RSP) is a great option. Choose from over 250 ETFs — including the Xtrackers Nikkei 225 UCITS ETF 1D (LSE:XDJP) — and invest regularly with 0% processing fees. You can get started with as little as SGD 50 a month.

Click here to learn more about our ETF Regular Savings Plan and explore the full list of available ETFs.

FSMOne’s 0% Sales Charge and 0% Redemption fees for Unit Trusts

FSMOne is the first in the industry to offer permanently 0% sales charge and 0% redemption fees for unit trusts. Unlike investing via banks or other platforms, 100% of your money goes into investing in unit trusts, and you can receive 100% of your proceeds when you sell your unit trusts.

Open an FSMOne Account – It’s instant with just a few clicks

Click here to open your free account and start investing globally and profitably today.

Call us at +65 6557 2853 or send us an email to clienthelp@fundsupermart.com if you have encountered any difficulties in getting started.

Declaration:
For specific disclosure, at the time of publication of this report, IFPL (via its connected and associated entities) and the analyst who produced this report hold a NIL position in the abovementioned securities.

Disclaimer

Investment products involve risk, including the possible loss of the principal amount invested. Past performance is not indicative of future performance and yields may not be guaranteed.

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