2 Best Japan ETFs for Canadian Investors (June 2026)
The best Japan ETFs in Canada include ZJPN.TO (~0.48% MER) and JAPN-B.TO (~0.55%). These ETFs provide exposure to Japanese equities, offering diversification into a major developed market, but returns are influenced by currency movements, economic conditions, and sector concentration.
Japan ETFs are designed for Canadian investors seeking exposure to one of the world’s largest developed markets outside North America. ETFs like ZJPN.TO and JAPN-B.TO provide access to Japanese equities, including global leaders in manufacturing, technology, and automotive industries.
The key advantage of Japan ETFs is diversification into a mature economy with strong export-driven companies. However, investors should consider currency exposure (JPY), economic stagnation risks, and regional concentration.
In this guide, we break down the best Japan ETFs for Canadian investors, comparing fees, diversification, and risk so you can decide how they fit into your TFSA, RRSP, or international portfolio.
At a Glance: Quick Comparison
Side-by-side snapshot of fees, yield, and returns. Data updates daily.
| ETF | MER | AUM | Yield | YTD | 1Y |
|---|---|---|---|---|---|
Top ZJPN.TO BMO Japan Index ETF | — | $673M | 1.20% | +21.76% | +31.85% |
JAPN-B.TO CI WisdomTree Japan Equity Index ETF | — | $1.1B | 2.17% | +21.29% | — |
What Is an ETF?
A Japan ETF in Canada is an exchange-traded fund that invests in Japanese equities, providing exposure to companies listed on the Tokyo Stock Exchange. These ETFs allow Canadian investors to access Japan’s economy without directly buying foreign stocks.
For example, ZJPN.TO (~0.48% MER) provides exposure to Japanese equities with a focus on currency-hedged returns, while JAPN-B.TO (~0.55% MER) offers a similar strategy with active or factor-based elements. ZJP.TO (~0.48% MER) and EWJ (U.S.-listed) are also widely used Japan-focused ETFs.
Japan ETFs are commonly used in TFSAs and RRSPs for geographic diversification. Investors should consider currency risk, economic growth trends, and sector exposure when investing in Japan.
The 2 Best ETFs: Ranked & Reviewed
Detailed breakdown of each pick with live data.
BMO Japan Index ETF
$51.87
+21.76% YTD
NA
Returns
YTD
+21.76%
1Y
+31.85%
3Y
+19.10%
5Y
—
CI WisdomTree Japan Equity Index ETF
$51.15
+21.29% YTD
Pros & Cons
Pros
- Exposure to a major developed economy outside North America
- Diversification across industries like automotive, robotics, and manufacturing
- Access to globally competitive export-driven companies
- Can enhance international diversification in a portfolio
Cons
- Currency fluctuations (JPY/CAD) can impact returns
- Slower economic growth compared to emerging markets
- Market concentration in large industrial and export companies
- Demographic challenges may affect long-term growth
Compare These ETFs Head-to-Head
Drill into a side-by-side breakdown of performance, AUM, and yield.
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Frequently Asked Questions
What is the best Japan ETF in Canada?
ZJPN.TO is one of the most popular Japan ETFs in Canada due to its broad exposure to Japanese equities and currency-hedged structure. Alternatives like JAPN-B.TO offer similar exposure with different strategies and slightly higher fees.
Are Japan ETFs a good investment?
Japan ETFs can be a useful diversification tool for Canadian investors, offering exposure to a major developed market. However, they typically have lower growth compared to emerging markets and are influenced by currency and economic trends.
Should I hedge currency when investing in Japan ETFs?
Hedged ETFs reduce exposure to currency fluctuations between the Japanese yen and Canadian dollar, while unhedged ETFs allow currency movements to impact returns. The choice depends on your investment horizon and tolerance for currency risk.