ETFGI, a leading independent research and consultancy firm on trends in the global ETF/ETP ecosystem, reported today that assets invested in ETFs and ETPs listed in Japan reached a record high of US$313 billion at the end of July 2018, surpassing the previous record of US$312 billion set at the end of June 2018. (All dollar values in USD unless otherwise noted.)
Highlights
- Assets invested in ETFs/ETPs listed in Japan increased by 0.35% during July 2018 to reach a record high of $313 Bn, surpassing the prior record of $312 Bn set in June 2018.
- Year-to-date, assets have increased by 13.5% from $276 Bn at the end of 2017.
- In July 2018, ETFs/ETPs listed in Japan saw net inflows of $4.49 Bn.
According to ETFGI’s July 2018 Japan ETF and ETP industry insights report, an annual paid-for research subscription service, assets invested in ETFs/ETPs listed in Japan increased by 0.35% or $1.09 Bn during the month. Year-to-date, assets have increased by 13.5% from $276 Bn at the end of 2017. At the end of July 2018, the Japanese ETF/ETP industry had 212 ETFs/ETPs, with 246 listings, from 19 providers on 2 exchanges.
Japanese ETF and ETP asset growth as at end of July 2018
In July 2018, ETFs/ETPs listed in Japan saw net inflows of $4.49 Bn. Equity products gathered the largest net inflows with $5.18 Bn, while leveraged ETFs/ETPs experienced the largest net outflows with $823 Mn. Year-to-date through end of July, ETFs/ETPs listed globally have seen net inflows of $43.6 Bn. Equity products gathered the largest net inflows with $43.8 Bn, while leveraged inverse ETFs/ETPs experienced the largest net outflows with $418 Mn.
“Investors favoured equities over fixed income and commodities as equity markets have performed positively in July. The S&P 500 gained 3.72%, international markets ex US were up 1.93% and emerging markets up 2.81%. Investors are still concerned about the impact of trade wars and Brexit,” according to Deborah Fuhr, managing partner and a founder of ETFGI.
Investors have tended to invest in core, market cap and lower cost ETFs during 2018, with the TOPIX Exchange Traded Fund (1306 JP) and Daiwa ETF TOPIX (1305 JP) capturing flows of $13.6 Bn and $7.30 Bn, respectively. The majority of net inflows year-to-date can be attributed to the top 20 ETFs by net new assets, which collectively gathered $42.7 Bn.
Top 20 ETFs by YTD net inflows: Japan
Name | Ticker | Assets (US$ Mn) Jul-18 |
ADV (US$ Mn) Jul-18 |
NNA (US$ Mn) YTD 2018 |
TOPIX Exchange Traded Fund | 1306 JP | 71,947 | 41.5 | 13,624 |
Daiwa ETF TOPIX | 1305 JP | 34,763 | 4.5 | 7,297 |
Listed Index Fund TOPIX | 1308 JP | 31,819 | 5.2 | 5,071 |
Nikkei 225 Exchange Traded Fund | 1321 JP | 51,809 | 59.5 | 4,417 |
Daiwa ETF NIKKEI 225 | 1320 JP | 23,043 | 15.3 | 1,481 |
MAXIS TOPIX ETF | 1348 JP | 9,356 | 2.1 | 1,453 |
NEXT FUNDS JPX-Nikkei Index 400 ETF | 1591 JP | 6,219 | 2.4 | 1,258 |
Listed Index Fund 225 | 1330 JP | 26,152 | 18.3 | 1,207 |
MAXIS NIKKEI225 ETF | 1346 JP | 12,545 | 8.0 | 1,053 |
NEXT FUNDS Nikkei 225 Leveraged Index ETF | 1570 JP | 3,159 | 1,177.3 | 1,001 |
iShares Core TOPIX ETF | 1475 JP | 1,711 | 2.0 | 746 |
iShares Japan REIT ETF | 1476 JP | 1,326 | 0.4 | 734 |
Listed Index Fund J-REIT | 1345 JP | 1,945 | 0.6 | 611 |
iShares Core Nikkei 225 ETF | 1329 JP | 4,556 | 3.3 | 590 |
MAXIS JPX-Nikkei Index 400 ETF | 1593 JP | 2,687 | 0.4 | 513 |
NZAM ETF J-REIT Index | 1595 JP | 1,419 | 0.2 | 476 |
One ETF TOPIX | 1473 JP | 1,352 | 0.1 | 349 |
Listed Index Fund JPX-Nikkei Index 400 | 1592 JP | 1,530 | 0.1 | 299 |
Daiwa ETF JPX-Nikkei 400 | 1599 JP | 1,707 | 0.3 | 272 |
One ETF Nikkei 225 | 1369 JP | 3,104 | 0.5 | 267 |
Source: ETFGI data sourced from ETF/ETP sponsors, exchanges, regulatory filings, Thomson Reuters/Lipper, Bloomberg, publicly available sources and data generated in-house.Note: This report is based on the most recent data available at the time of publication. Asset and flow data may change slightly as additional data becomes available.