iShares JPX-Nikkei 400 ETF

iShares JPX-Nikkei 400 ETF (JPXN) holds about 390 Japanese stocks picked for the JPX-Nikkei 400 index. That index screens companies on return on equity, operating profit, size and corporate governance. The screen sets it apart from other Japan funds. But its 0.48% expense ratio is well above Franklin FTSE Japan ETF's 0.09%. With about $134 million in net assets as of June 30, 2026, it is also small next to similar funds.

• Over the year to Oct 27, 2026, JPXN returned +20.2%, 2nd of 7 among similar funds.
• Its 5-year annualized return was +9.8% and its 10-year +8.7%.
• In the 2020 COVID crash it fell 25.1% and regained its old high 2.8 months after the low.
• Its worst full calendar year was 2008 (-27.9%); its best was 2025 (+26.1%).
• The deepest fall in its price history was 55.5% (May 9, 2006 to Mar 9, 2009), recovered by May 30, 2017.

As of Jun 30, 2026, the fund held 390 securities; the ten largest made up 21.3% of assets.

• Over the three months to Jun 30, 2026, investors withdrew a net $15.0M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +5.95%, +3.64%, -0.18%.

JPXN tracks the JPX-Nikkei 400 Net Total Return Index. The index comes from Japan Exchange Group, JPX Market Innovation & Research and Nikkei Inc. It draws from stocks whose main market is the Tokyo Stock Exchange's Prime, Standard or Growth market. It picks 400 companies using four things. The first is trading value over the past three years. The second is market value at the end of June. The third is a score that blends three-year average return on equity (profit earned on shareholders' money), cumulative operating profit and market value. The fourth is governance and disclosure standards. The index provider sets the weightings, and the list can include large, mid and small companies.

BlackRock Fund Advisors manages the fund with representative sampling. That means it buys a group of stocks meant to match the index's overall profile, not necessarily every member. As of June 30, 2026, the fund held 390 issuers. It must keep at least 80% of net assets in index stocks. It may use derivatives, and it held a tiny TOPIX futures position of about 0.02% of assets. It may lend up to one-third of its assets. Portfolio turnover, the share of holdings replaced over a year, was 12%.

The stocks trade in yen, but the fund's value is figured in dollars. So a weaker yen can cut returns even when Japanese shares rise.

• JPXN charges 0.48% a year, versus an average of 0.34% for the similar funds below (5th of 7, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $49 in the first year and $604 over 10 years (assuming a 5% annual return).

It adds Japanese stocks that a US-focused portfolio may lack, but it has had deep past drops and swings with the yen.

JPXN could add Japanese companies, from chip-equipment makers such as Tokyo Electron to banks such as Mizuho, to a portfolio built mostly on US stocks. Its drops have been deep. Based on price history, it fell 53.2% in the 2008 crisis and took about 73 months to recover. Its worst calendar year was 2008, at -27.9%. Its deepest drop, 55.5% from May 2006 to March 2009, took about 99 months to recover. It lost 25.1% in the 2020 crash and recovered in about three months. It lost 26.8% in 2022 and recovered in about 15 months. Selling to fund spending in such stretches would lock in losses. The trailing yield was 2.67% as of October 27, 2026, paid twice a year. The 0.48% expense ratio sits above the 0.34% peer average. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.