ETF of the Day - Playing Japan Rally with Financials

Interested in the Japanese market as the country's stocks break out to new highs amid more Central Bank intervention?

Other than the 2 ETFs that have been discussed in the news: iShares Japan ETF (EWJ) and WisdomTree Japan Hedged Equity ETF (DXJ), there is another option for investors willing to think outside the box.

The iShares MSCI Far East Financials Sector ETF (FEFN) has high exposure to the Japanese financials (63%) and the top holdings are Japanese banks. There is a total of 82 stocks in the ETF and the current 12-month yield is 3.12%.

I believe Japan will keep the pressure on the Yen and push their currency even lower and in turn it will be a positive for Japanese equities and in particular the financials.

The one issue I have with FEFN is the low volume and larger than average bid/ask spread, but as a longer-term play I feel it could be an option for investors willing to take above average risk for the devaluation of the Yen investment play.