At a glance
FLJH charges 0.09% a year, below the 0.46% average of the 2 funds most like it (the cheapest of 3). It has $171.8M in assets, the 3rd largest of that group; it paid 2.48% of its price in distributions over the past 12 months, semiannual. Over the past year it returned +21.1% with distributions reinvested (S&P 500: +11.5%), the weakest of those 3 funds; over three years it returned +27.4% a year. At its worst it fell 29.1% in the 2020 crash (S&P 500: 33.7%) and 14.4% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 6 months and 8 months after the lows. Its ten largest positions make up 24.9% of the fund, out of 475 in all.
The short version
Franklin FTSE Japan Hedged ETF (FLJH) tracks the FTSE Japan RIC Capped Hedged to USD Index. The index holds about 476 large and mid-sized Japanese companies and uses monthly currency contracts to offset most of the effect of yen moves against the dollar. Its 0.09% expense ratio is well below the 0.45% and 0.48% charged by the two most similar hedged Japan funds. It is also much smaller than both and has trailed them over one and three years.
Price history
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FLJH +21.1% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| FLJH official prospectus, to Dec 31, 2025 | — | +29.25% | — | +19.58% | — | +13.51% |
| FTSE Japan Index-NR (JPY) index, same period | — | +25.30% | — | +6.59% | — | +6.66% |
| FTSE Japan Capped Hedged Index-NR index, same period | — | +29.20% | — | +19.57% | — | +13.55% |
| FLJH price data to Oct 27, 2026 | +21.8% | +21.1% | +27.4% | +20.7% | — | +14.2% |
- Over the year to Oct 27, 2026, FLJH returned +21.1%, 3rd of 3 among similar funds.
- Its 5-year annualized return was +20.7%.
- In the 2020 COVID crash it fell 29.1% and regained its old high 6.4 months after the low.
- Its worst full calendar year was 2018 (-14.9%); its best was 2023 (+36.2%).
- The deepest fall in its price history was 31.7% (Jan 23, 2018 to Mar 16, 2020), recovered by Nov 9, 2020.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +21.8% | — |
| 2025 | +25.4% | +29.25% |
| 2024 | +25.9% | +26.07% |
| 2023 | +36.2% | +35.04% |
| 2022 | -2.6% | -1.47% |
| 2021 | +12.7% | +12.78% |
| 2020 | +10.7% | +9.44% |
| 2019 | +20.3% | +20.52% |
| 2018 | -14.9% | -13.96% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 21.4% over that stretch · deepest drop along the way 29.1%, back to its old high 6.4 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 3.6% over that stretch · deepest drop along the way 14.4%, back to its old high 8.4 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.2900 | |
| 2025 | $1.4700 | -7.0% |
| 2024 | $1.5800 | -76.4% |
| 2023 | $6.7000 | +3.6% |
| 2022 | $6.4700 | +1478.0% |
| 2021 | $0.4100 | -67.5% |
| 2018 | $1.2600 |
What's inside
As of Jun 30, 2026, the fund held 475 securities; the ten largest made up 24.89% of assets.
| Holding | Weight | |
|---|---|---|
| MITSUBISHI UFJ FINANCIAL GROUP INC | 3.40% | |
| TOKYO ELECTRON LTD | 3.31% | |
| KIOXIA HOLDINGS CORP | 2.94% | |
| TOYOTA MOTOR CORP | 2.82% | |
| ADVANTEST CORP | 2.27% | |
| SUMITOMO MITSUI FINANCIAL GROUP INC | 2.23% | |
| SOFTBANK GROUP CORP | 2.18% | |
| MURATA MANUFACTURING COMPANY LTD | 1.93% | |
| HITACHI LTD | 1.92% | |
| SONY GROUP CORP | 1.89% | |
| MIZUHO FINANCIAL GROUP INC | 1.77% | |
| KEYENCE CORP | 1.49% | |
| RECRUIT HOLDINGS CO LTD | 1.49% | |
| FAST RETAILING COMPANY LTD | 1.47% | |
| MITSUBISHI CORP | 1.34% |
By country
Japan 97.51%By asset type
Stocks 97.51%What changed recently
- Over the three months to Jun 30, 2026, investors added a net $17.7M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +7.64%, +6.91%, +1.40%.
What it really costs
- FLJH charges 0.09% a year, versus an average of 0.46% for the similar funds below (1st of 3, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $9 in the first year and $116 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| FLJH | $9 | $29 | $51 | $116 |
In a retirement portfolio
It is a single-country stock fund that has had drops of nearly a third, so it fits better as a smaller slice of a portfolio than as its foundation.
FLJH could add Japanese stocks to a portfolio built mostly on US stocks. Because of the currency hedge, its returns follow Japanese share prices more than swings in the yen. The hedge does not cushion stock-market falls. The fund fell 29.1% between February 19 and March 16, 2020, and was back at its peak about 6.4 months later. It dropped 14.4% in early 2022 but ended that calendar year down just 1.47%. Its worst calendar year was 2018 (-13.96%). Its deepest drop was 31.7%, from January 2018 to March 2020, and it did not fully recover until November 2020. The fund launched in 2017, so it has no 2008 record. Anyone who had to sell during a stretch like that would lock in losses.
The trailing yield was 2.48% as of October 27, 2026, paid twice a year. Costs are low: in the SEC's standard example, $10,000 invested would cost $116 over 10 years. Past results don't predict future ones. A plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want Japanese large- and mid-cap stocks with yen swings mostly hedged, at 0.09% a year versus 0.45%–0.48% for DBJP and DXJ.
- People who expect the yen may weaken against the dollar, since the hedged index is designed to beat an unhedged one when that happens.
- Investors comfortable with dividends paid twice a year; the trailing yield was 2.48% as of October 27, 2026.
Look elsewhere if
- Investors who want yen exposure as a diversifier, since the hedge lowers returns compared with unhedged funds when the yen rises against the dollar.
- Those who prefer a large, heavily traded fund; FLJH had about $172 million in net assets as of June 30, 2026, versus $7.08 billion for DXJ.
- Anyone uneasy with single-country risk: the fund fell 31.7% from January 2018 to March 2020 and did not fully recover until November 2020.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
Net assets from each fund's latest N-PORT or annual report where available. Returns through Oct 27, 2026.Questions investors ask
What does currency hedged mean for FLJH?
It means FLJH tries to remove most of the effect of yen-versus-dollar moves on its returns. Each month the fund uses forward or futures contracts to sell the yen value of its holdings ahead of time, copying the hedge built into its index. If the yen weakens, the hedged fund should beat an unhedged Japan fund. If the yen strengthens, it should lag. The hedge is reset only monthly, so it is not perfect.
What's the difference between FLJH and DBJP?
The biggest difference is cost. FLJH charges 0.09% a year and the Xtrackers MSCI Japan Hedged Equity ETF (DBJP) charges 0.45%. Both hedge the yen, and their holdings overlap by about 80%. DBJP follows an MSCI index rather than a FTSE one. As of October 27, 2026, DBJP returned 26.5% over one year and 28.7% a year over three years, versus 21.1% and 27.4% for FLJH. DBJP is also larger. WisdomTree's DXJ, at 0.48%, is another hedged option.
Does FLJH pay dividends?
Yes. FLJH pays dividends twice a year. Over the 12 months to October 27, 2026, it paid $1.13 per share, a trailing yield of 2.48%. Because payments come only twice a year and depend on the dividends Japanese companies pay, the income is lumpy. It may not suit someone who needs steady monthly cash flow from one holding.
How has FLJH performed since launch?
FLJH has done well in recent years, though it has had losing years. According to its prospectus, as of December 31, 2025, it returned 29.25% over one year, 19.58% a year over five years and 13.51% a year since its 2017 launch. Those figures closely match its index. It lost 13.96% in 2018 and 1.47% in 2022. Based on price, it was up 21.8% for 2026 through October 27.
Is FLJH a good investment for retirement?
FLJH may fit a retirement portfolio as a smaller satellite holding rather than a core one. It offers low-cost, currency-hedged exposure to Japanese stocks, with a 0.09% expense ratio and dividends paid twice a year. However, it holds stocks from just one country and fell 31.7% from January 2018 to March 2020. Its three-year volatility was 20% as of October 27, 2026. Investors drawing on savings may want to weigh how a drop like that would affect their withdrawals.