BoJ Owns 60% Of The Assets Invested In Japanese ETFs And ETPs – ValueWalk Premium
Japanese ETFs And ETPs

BoJ Owns 60% Of The Assets Invested In Japanese ETFs And ETPs

ETFGI reports Bank of Japan owns 60% of the assets invested in ETFs and ETPs listed in Japan at the end of November 2021

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LONDON — December 31, 2021 — ETFGI, a leading independent research and consultancy firm covering trends in the global ETFs/ETPs ecosystem, reported today that Bank of Japan owns 60% of the assets invested in ETFs and ETPs listed in Japan at the end of November.    ETFs and ETPs listed in Japan suffered net outflows of US$3.51 billion during November, bringing year-to-date net inflows to US$19.12 billion. Assets invested in the Japanese ETFs/ETPs industry have decreased by 3.7%, from US$555 billion at the end of October to US$535 billion, according to ETFGI's November 2021 Japanese ETFs and ETPs industry landscape insights report, an annual paid-for research subscription service. (All dollar values in USD unless otherwise noted.)

Highlights

  • Bank of Japan owns 60% of the assets invested in ETFs and ETPs listed in Japan at the end of November.
  • Assets of $535 Bn invested in ETFs and ETPs listed in Japan at the end of November 2021.
  • ETFs and ETPs listed in Japan suffered net outflows of $3.51 billion during November.
  • YTD net inflows are $19.12 Bn which are significantly below the $65.47 Bn gathered YTD in 2020.  
  • $16.85 Bn in net inflows gathered in the past 12 months.
  • Assets increased 0% YTD in 2021, going from US$535 billion at end of 2020, to US$535 billion.
  • 1st month of net outflows after 2 consecutive months of net inflows

“Due to the growing threat of a new COVID variant Omicron, the S&P 500 declined 0.69% in November, however, the index is up 23.18% year to date. Developed markets, excluding the US, experienced a fall of 4.94% in November. Israel (down 1.03%) and the US (down 1.47%) experienced the smallest losses among the developed markets in November, while Luxembourg suffered the biggest loss of 16.90%. Emerging markets declined 3.53% during November. United Arab Emirates (up 8.15%) and Chile (up 5.51%) gained the most, whilst Turkey (down 13.72%) and Poland (down 11.95%) witnessed the largest declines.” According to Deborah Fuhr, managing partner, founder and owner of ETFGI.

Japan ETF and ETP asset growth as at the end of November 2021

Japanese ETFs And ETPs

At the end of November 2021, the Japanese ETF/ETP industry had 240 ETFs/ETPs, with 273 listings, assets of US$535 Bn, from 18 providers listed on 3 exchanges.

Equity ETFs/ETPs listed in Japan had net outflows of $3.47 Bn during November, bringing net inflows for the year to end of November to $21.92 Bn, lower than the $60.58 Bn in net inflows equity products had in the same period in 2020. Fixed income ETFs/ETPs listed in Japan gathered net inflows of $99 Mn during November, bringing net inflows YTD 2021 to $1.06 Bn, higher than the $629 Mn in net inflows fixed income products reported YTD in 2020. Commodities ETFs /ETPs listed in Japan saw net outflows of $107 Mn during November 2021, taking net outflows YTD in 2021 to $1.08 Bn, much lower than the $1.31 Bn in net inflows commodities products attracted in the same period last year.

Bank of Japan’s ownership of ETFs listed in Japan

Japanese ETFs And ETPs

At the end of November 2021, the Bank of Japan held ETFs/ETPs assets of $324 Bn. During November 2021, the Bank of Japan did not make any purchases of ETFs.

Substantial inflows can be attributed to the top 20 ETFs by net new assets, which collectively gathered $1.38 Bn during November. The One ETF TOPIX – Acc (1473 JP) gathered $339 Mn largest individual net inflow.
Top 20 ETFs by net new assets November 2021: Japan

Name Ticker Assets
(US$ Mn)
Nov-21
NNA
(US$ Mn)
YTD-21
NNA
(US$ Mn)
Nov-21
One ETF TOPIX – Acc 1473 JP 3,420.11 665.50 399.09
iShares S&P 500 ETF – Acc 1655 JP 567.43 328.43 191.32
MAXIS TOPIX ETF 1348 JP 20,896.67 2,389.39 160.10
Daiwa ETF TOPIX 1305 JP 65,129.22 2,227.44 89.17
iFree ETF-Nikkei 225 Quarterly Dividend Type 2624 JP 455.19 350.46 83.48
NEXT FUNDS Tokyo Stock Exchange REIT Index ETF 1343 JP 3,711.58 54.89 78.17
iShares Core Japan Government Bond ETF 2561 JP 275.03 182.71 41.83
MAXIS S&P500 US Equity ETF 2558 JP 212.97 139.89 36.73
iShares Core 7-10 Year US Treasury Bond JPY Hedged ETF 1482 JP 533.98 361.84 33.43
NEXT FUNDS Nikkei 225 Inverse Index ETF 1571 JP 219.58 (935.60) 30.17
NEXT FUNDS Nomura Japan Equity High Dividend 70 ETF 1577 JP 571.29 (50.31) 28.15
Listed Index Fund US Bond (Currency Hedge) – JPY Hdg – Acc 1487 JP 371.51 224.51 26.82
NEXT FUNDS International Bond FTSE WGBI ex Japan Yen-Hedged Exchange Traded Fund 2512 JP 527.12 424.97 25.02
NEXT FUNDS TOPIX Banks Exchange Traded Fund 1615 JP 387.36 110.47 24.35
MAXIS NASDAQ100 ETF 2631 JP 117.86 105.70 23.93
MAXIS S&P500 US Equity ETF – JPY Hedged 2630 JP 168.77 161.65 23.55
MAXIS JPX-Nikkei Index 400 ETF 1593 JP 5,189.58 290.75 23.41
Simplex TOPIX Bear -1x ETF 1569 JP 54.97 (6.63) 20.08
MAXIS J-REIT ETF – Acc 1597 JP 1,476.43 9.09 19.85
iShares US REIT ETF – Acc 1659 JP 158.37 41.44 19.68

Investors have tended to invest in Equity ETFs/ETPs during November.

Contact [email protected] if you have any questions or comments on the press release or ETFGI events, research or consulting services.

Article by ETFGI


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