Vanguard FTSE Japan USD

The Vanguard FTSE Japan USD is an exchange-traded fund (ETF) designed to provide investors with exposure to large and mid-sized companies listed in Japan. The primary objective of this fund is to track the performance of the FTSE Japan Index through a passive, indexing approach. It achieves this by either fully replicating the index—investing in all its constituent stocks in matching proportions—or, when necessary, employing a sampling methodology to maintain representative coverage. The ETF's base currency is the US dollar, though it invests in securities denominated in Japanese yen, making currency movements a factor in performance outcomes. The fund may also utilize derivatives for risk management or to enhance returns, and engages in securities lending to generate additional income. By reinvesting income back into the fund, it offers an accumulating structure, instead of paying out dividends. Vanguard FTSE Japan USD plays a significant role for investors seeking broad, diversified exposure to Japanese equity markets within a single, cost-efficient vehicle, making it useful for portfolio diversification across global equity markets.