Japanese ETFs/ETPs Gathering Net New Assets 59% Faster Than Before

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LONDON —  August 11, 2015 — ETFs and ETPs listed in Japan are gathering net new assets 59% percent faster than in prior years according to ETFGI. A record level of US$23.8 billion in net new assets (NNA) was gathered by ETFs and ETPs listed in Japan in the first seven months of 2015, surpassing the prior record of US$15.0 billion gathered in the same period in 2014. At the end of July 2015, the Japanese ETF/ETP industry had 154 ETFs/ETPs, with 209 listings, assets of US$125 Bn, from 21 providers listed on 2 exchanges, according to ETFGI’s preliminary ETF and ETP global insights report for the July 2015.

The S&P 500 index ended up 2% for the month of July and finished the first seven months of 2015 up 3%. Although investors faced uncertainty in China and Greece during July they continued to invest significant net new assets in equity ETFs”, according to Deborah Fuhr, managing partner of ETFGI.

Record levels of NNA have also been gathered by ETFs/ETPs listed globally which have gathered US$199 billion in first seven months of 2015, surpassing the prior record of US$164 billion gathered in the same period in 2014. A record level of US$125.1 billion in net new assets (NNA) was gathered by ETFs and ETPs listed in the United States in the first seven months of 2015, surpassing the prior record of US$115.9 billion gathered in the same period in 2013, and a record level of US$48.4 billion in NNA was gathered by ETFs and ETPs listed in Europe in the first seven months of 2015, surpassing the prior record of US$42.9 billion gathered in the same period in 2014.

Japanese ETFs/ETPs saw net inflows of US$5.9 billion in July

In July 2015, ETFs/ETPs listed in Japan saw net inflows of US$5.9 Bn. Equity ETFs/ETPs gathered the largest net inflows with US$4.3 Bn, followed commodity ETFs/ETPs with US$218 Mn, and fixed income ETFs/ETPs with US$5 Mn in net inflows.

Year to date through end of July 2015, ETFs/ETPs have seen net inflows of US$23.8 Bn. Equity ETFs/ETPs gathered the largest net inflows with US$20.9 Bn, followed by commodity ETFs/ETPs with US$573 Mn, and fixed income ETFs/ETPs with US$45 Mn.

Nomura AM gathered the largest net ETF/ETP inflows in July with US$2.9 Bn, followed by Nikko AM with US$1.7 Bn and Daiwa with US$711 Mn in net inflows.

YTD, Nomura AM gathered the largest net ETF/ETP inflows with US$10.1 Bn, followed by Nikko AM with US$6.0 Bn and Mitsubishi UFJ with US$2.5 Bn in net inflows.

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Note to editors

ETFs are typically open-ended, index-based funds, with active ETFs accounting for less than 1% market share. They can be bought and sold like ordinary shares on a stock exchange and offer broad exposure across developed, emerging and frontier markets, equities, fixed income and commodities. ETFs are used widely by institutional investors and increasingly by financial advisors and retail investors to:

  • equitize cash
  • implement diversified exposure to a market
  • comprise a core or satellite investment
  • be a long term strategic investment
  • implement tactical adjustments to portfolios
  • use as building blocks to create entire portfolios
  • allow investors to hedge the market
  • use as an alternative to futures and other derivative products

Exchange Traded Products (ETPs) are products that have similarities to ETFs in the way they trade and settle but do not use an open-end fund structure. The use of other structures including unsecured debt, grantor trusts, partnerships, and commodity pools by ETPs can, in addition to a significantly different risk profile, create different tax and regulatory implications for investors when compared to ETFs, which are funds.

 

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