Summary

• Japan’s broad market equities are trading at a strong equity risk premium of 4.9%, significantly higher than the S&P 500 Index at 3.0%, while delivering superior earnings per share growth, positioning investors to capture both valuation upside and earnings momentum through strategies like the WisdomTree Japan Opportunities Fund, which had an even higher figure at 6.7%.
• Despite macro risks such as energy shocks and global uncertainty, Japan’s surge in shareholder returns, ¥18–20 trillion in annual buybacks alongside rising dividends, signals a structural governance shift that OPPJ systematically targets through its shareholder yield and corporate reform exposures.
• Warren Buffett’s expansion from trading houses to Tokio Marine underscores Japan’s evolution into a globally integrated, capital efficient market, reinforcing the case for investors to consider this multi-faceted opportunity via OPPJ's blend of focusing on Berkshire’s Japan investments, value opportunities, corporate governance improvement and thematic growth allocations.

By Christopher Gannatti, CFA

Japan is emerging as one of the most compelling opportunities in global equities today.

What makes this moment different is not a single catalyst, but a convergence of forces. Valuations remain meaningfully discounted