Takaichi Agenda Could Propel These Unique Japan ETFs

Core Insights - Japanese Prime Minister Sanae Takaichi is implementing a post-election agenda that could significantly impact investment opportunities, particularly in legacy Japan ETFs [1] - The agenda emphasizes shareholder rewards, with Japanese companies increasingly engaging in stock buybacks and raising dividends, which aligns with Takaichi's goals [3][4] - The WisdomTree Japan Opportunities Fund (OPPJ) and WisdomTree Asia Defense Fund (WDAF) are highlighted as potential beneficiaries of this agenda [2][6] Group 1: Investment Opportunities - The WisdomTree Japan Opportunities Fund (OPPJ) aims to capture Japan's shareholder yield opportunities, which are becoming more relevant as companies focus on shareholder rewards [3] - Shareholder payouts in Japan have quadrupled over the past decade, with buybacks now surpassing total dividends from ten years ago [4] - OPPJ has significant allocations to Japan's trading houses, with approximately 45% of its weight in stocks that are also part of Warren Buffett's investments, providing greater exposure to these assets [5] Group 2: Defense Spending - Takaichi is prioritizing increased defense spending, which could enhance the relevance of the WisdomTree Asia Defense Fund (WDAF) [6] - Japan is the third-largest country exposure in WDAF, which is timely as several Asian economies, including India and South Korea, are also increasing their defense budgets [7] - South Korea is becoming a key player in defense exports, while India is focusing on transforming procurement into production, reshaping its defense ecosystem [8]