Overseas investors cannot directly purchase and manage shares on the Nikkei 225. On the other hand, investors can gain exposure to the index by investing in ETFs whose components are linked to the Index's constituents. A stock or other security can be included in an ETF, which is traded on the stock market. ETFs are subject to day-to-day price changes, just like stocks. The use of exchange-traded funds (ETFs) in margin trading and short-selling are two common forms of speculative trading. The entire market can be traded similarly to how a single stock can be traded. The ETF is a great tool for investors who need to allocate 80 to 20 percent of their portfolio to equities and bonds. Tax-aware investors can also use ETFs to reduce their tax burdens. Due to the ETFs' unique structure, it is possible to redeem huge volumes of ETFs for stocks they track.

The Nikkei is an index that tracks the performance of 225 stocks that are traded on the Tokyo Stock Exchange. The index has grown significantly over the past decade, making it a great place for investors to make money investing in Japan. Investing in Nikkei stocks may be confusing for investors who are not familiar with the market, but here are some things you should know before getting started.