Money is flying out of a once-popular bet on Japan.
The WisdomTree Japan Hedged Equity ETF (DXJ), which combines a long position on Japanese stocks with a short position on the Japanese yen, has seen major outflows this year. On net, $2.7 billion worth of the DXJ has been redeemed this year, which is the largest amount of redemptions suffered by any ETF, according to data from ETF.com.
"We saw all of this hot money come in, and now we're watching the reverse, as all of it floods out," Eddy Elfenbein, editor of the "Crossing Wall Street" blog, said Monday on CNBC's "Trading Nation."
Elfenbein added a warning: "Just because a great trade goes all the way back to square one, doesn't mean it's a great trade again. I would stay away from this ETF."