Spotlight: iShares MSCI Japan ETF (ASX: IJP)
Each month in our ETF Spotlight series, we put the focus on one of the ETFs inside our ETF portfolios or available through InvestSMART Custom.
This time, we're looking at the iShares MSCI Japan ETF (ASX: IJP), which is part of our Custom offering. Here's what you need to know.
About the iShares MSCI Japan ETF (ASX: IJP)
The iShares MSCI Japan ETF (ASX: IJP) gives investors exposure to large and mid-sized companies in Japan, covering around 85% of the country's share market.
According to the website, IJP suits investors looking for capital growth with a medium to high risk/return profile. The minimum suggested investment timeframe is five years. The ETF is not hedged, so investors will also be exposed to currency fluctuations.
Here are a few quick facts about IJP:
- Investment manager: BlackRock
- Inception date: 12 March 1996
- Size: $1.2 billion
- Management fee: 0.50%
- Benchmark: MSCI Japan Index
- InvestSMART rating: 4 stars
- Distribution frequency: Semi-annual
Where is IJP invested?
The ETF is currently invested in about 180 companies. The top 10 holdings, which make up 29.11% of the portfolio, are listed below.
Top 10 holdings
|
Company |
Weight |
|
Toyota Motor Corp |
4.46% |
|
Mitsubishi UFJ Financial Group |
4.32% |
|
Hitachi Ltd |
3.30% |
|
Sony Group Corp |
2.85% |
|
Sumitomo Mitsui Financial Group |
2.69% |
|
Advantest Corp |
2.62% |
|
Tokyo Electron Ltd |
2.48% |
|
Mizuho Financial Group |
2.27% |
|
Softbank Group Corp |
2.18% |
|
Mitsubishi Heavy Industries Ltd |
1.94% |
Source: BlackRock. Holdings as of 31 January 2026.
From a sector perspective, as of 31 January 2026, IJP's holdings include Industrials (25.9%), Financials (17.7%), Consumer Discretionary (15.8%), Information Technology (14.8%) and Communication (7.1%).
What is IJP's management fee?
At 0.50%, IJP is more expensive than SPDR S&P Japan ETF (ASX: J100) at 0.40%, but cheaper than Betashares Japan ETF - Currency Hedged (ASX: HJPN) at 0.56%. It's worth noting, though, that while there is some overlap in holdings, each fund tracks a different index, and HJPN also hedges currency exposure.
How has IJP performed?
IJP has delivered strong performance in recent years, returning 16.8% a year over the three years to the end of January 2026. While the ETF pays distributions semi-annually, most of its returns have come from capital growth.
IJP performance
|
|
1 year |
3 yrs p.a. |
5 yrs p.a. |
10 yrs p.a. |
SI p.a.1 |
|
IJP total return |
16.79% |
16.81% |
9.35% |
8.72% |
2.85% |
|
Benchmark |
16.43% |
17.90% |
10.17% |
9.35% |
3.47% |
Source: BlackRock. Returns for the period ending 31 January 2026. 1Since inception on 12 March 1996.
Key takeouts
IJP provides targeted exposure to the Japanese sharemarket in a single ASX-listed ETF. The management fee is competitive and performance has been strong, especially in recent years. Of course, past performance is not a reliable indicator of future returns.
Want to compare ETFs? Check out our handy online ETF filter tool. It can help you narrow down your options based on filters such as investment category or InvestSMART's star rating. If you'd like help selecting the right InvestSMART ETF portfolio for you, try our free statement of advice quiz. It will show you which one may best suit your goals and investment timeframe.
Frequently Asked Questions about this Article…
The iShares MSCI Japan ETF (ASX: IJP) is an ASX-listed ETF managed by BlackRock that gives investors exposure to large- and mid-sized Japanese companies, covering about 85% of Japan’s share market. It tracks the MSCI Japan Index, was launched on 12 March 1996, has around $1.2 billion in assets and an InvestSMART rating of 4 stars.
As of 31 January 2026 IJP held about 180 companies. The top 10 holdings (29.11% of the portfolio) include Toyota Motor Corp (4.46%), Mitsubishi UFJ Financial Group (4.32%), Hitachi Ltd (3.30%), Sony Group Corp (2.85%), Sumitomo Mitsui Financial Group (2.69%), Advantest Corp (2.62%), Tokyo Electron Ltd (2.48%), Mizuho Financial Group (2.27%), Softbank Group Corp (2.18%) and Mitsubishi Heavy Industries Ltd (1.94%). By sector the fund is weighted to Industrials (25.9%), Financials (17.7%), Consumer Discretionary (15.8%), Information Technology (14.8%) and Communication (7.1%).
IJP’s management fee is 0.50% per year. That’s higher than the SPDR S&P Japan ETF (ASX: J100) at 0.40% but lower than the Betashares Japan ETF - Currency Hedged (ASX: HJPN) at 0.56%. Note that each ETF tracks a different index and HJPN also hedges currency exposure.
IJP is not currency hedged, so investors are exposed to currency fluctuations between the Australian dollar and the Japanese yen. Currency movements can affect overall returns in addition to movements in the underlying Japanese shares.
For the period ending 31 January 2026, IJP returned 16.79% over one year and 16.81% per annum over three years. Five- and ten-year annualised returns were 9.35% and 8.72% respectively, while the since-inception annualised return (from 12 March 1996) was 2.85%. Most of the ETF’s returns in recent years have come from capital growth rather than distributions.
According to the fund information, IJP suits investors seeking capital growth with a medium-to-high risk/return profile. The minimum suggested investment timeframe is five years, reflecting the fund’s exposure to equity market and currency volatility.
IJP pays distributions semi‑annually. While it does distribute income, most of the ETF’s recent returns have come from capital growth rather than distributions.
InvestSMART offers an online ETF filter tool to help you compare ETFs by category or InvestSMART star rating. If you want guidance on which InvestSMART ETF portfolio might suit your goals and timeframe, there is also a free statement of advice quiz available through InvestSMART.
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