ETFGI reports ETFs and ETPs in Japan gathered net inflows of US$6.58 billion during July 2020

 

LONDONAugust 27, 2020 — ETFGI, a leading independent research and consultancy firm covering trends in the global ETFs/ETPs ecosystem, reported today that ETFs and ETPs listed in Japan gathered net inflows of US$6.58 billion during July, bringing year-to-date net inflows to US$51.54 billion significantly more than the US$26.44 billion gathered at this point in 2019 and significantly more than the net inflows of US$36.72 billion gathered in all of 2019. Assets invested in the Japanese ETFs/ETPs industry have decreased by 1.2%, from US$420.41 billion at the end of June, to US$415.33 billion at the end of July taking assets to the third highest level on record, according to ETFGI's July 2020 Japanese ETFs and ETPs industry landscape insights report, the monthly report which is part of an annual paid-for research subscription service. (All dollar values in USD unless otherwise noted.)

Highlights

  • The Bank of Japan held $304 Bn or 73% of all ETFs/ETPs assets in Japan at the end of July.
  • YTD net inflows are $51.54 Bn significantly more than the $26.44 Bn gathered at this point in 2019 and significantly more than the net inflows of $36.72 Bn gathered in all of 2019.
  • Assets of $415.33 Bn invested in ETFs and ETPs listed in Japan is the third highest on record.

The S&P 500 gained 5.6% in July, aided by the U.S. Federal Reserve stimulus and strong earnings.   International markets also gained, with Developed Ex-U.S. and Emerging up 3.0% and 8.5%, respectively. In the developed markets Scandinavian countries benefited most, led by Norway (up 10.8%) and Sweden (up 10.1%); while Japan (down 2.0%) was the sole negative performer among developed countries. Dollar weakness contributed toward the positive momentum in Emerging markets where 19 of 25 countries gained, led by Brazil (up 14.4%) and Pakistan (up 13.4%), while Taiwan (up 12.1%) neared an all-time high.” According to Deborah Fuhr, managing partner, founder and owner of ETFGI.

 

At the end of July 2020, the Japanese ETF/ETP industry had 210 ETFs/ETPs, with 244 listings, assets of US$415 Bn, from 19 providers on 2 exchanges.

 

Japan ETF and ETP asset growth as at the end of July 2020

 

Equity ETFs/ETPs listed in Japan had net inflows of $6.80 Bn during July, bringing net inflows for the year to July 2020 to $46.71 Bn, much higher than the $27.36 Bn in net inflows equity products had in the year to July 2019. Leveraged ETFs/ETPs listed in Japan saw net outflows of $341 Mn during July, bringing net inflows for the year to July 2020 to $1.96 Bn, higher than the $3.75 Bn in net outflows leveraged products reported in the year to July 2019.
Fixed Income ETFs/ETPs listed in Japan saw net inflows of $35 Mn during July 2020, taking net inflows for the year to July 2020 to $120 Mn, higher than the $113 Mn in net inflows Fixed Income products attracted in the year to July 2019.

 

 

The Bank of Japan held $304 Bn or 73% of all ETFs/ETPs assets in Japan at the end of July.   During July 2020, Bank of Japan purchased ETF/ETP assets to the value of $6 Bn.

Substantial inflows can be attributed to the top 20 ETFs by net new assets, which collectively gathered $6.90 Bn during July, the TOPIX Exchange Traded Fund (1306 JP) gathered $2.34 Bn alone.

Top 20 ETFs by net new assets July 2020: Japan

Name

Ticker

Assets
(US$ Mn)
 Jul-20

NNA
(US$ Mn)
 YTD-20

NNA
(US$ Mn)
 Jul-20

TOPIX Exchange Traded Fund

1306 JP

107390.42

17686.44

2343.69

Daiwa ETF TOPIX

1305 JP

50579.51

8434.22

874.59

Listed Index Fund TOPIX

1308 JP

49353.05

9323.57

772.49

Listed Index Fund 225

1330 JP

27281.84

1061.51

549.31

MAXIS TOPIX ETF

1348 JP

14586.69

2898.01

381.07

iShares Core Nikkei 225 ETF

1329 JP

5446.43

(555.99)

278.20

NEXT FUNDS Nikkei 225 Double Inverse Index Exchange Traded Fund - Acc

1357 JP

3427.19

848.08

243.70

iShares Core TOPIX ETF

1475 JP

3579.80

1012.38

240.81

Nikkei 225 Exchange Traded Fund

1321 JP

57287.92

2058.03

223.58

NEXT FUNDS JPX-Nikkei Index 400 Exchange Traded Fund

1591 JP

7952.18

848.07

133.20

One ETF TOPIX - Acc

1473 JP

2213.80

553.05

116.94

One ETF Nikkei 225

1369 JP

2801.75

695.40

116.56

MAXIS NIKKEI225 ETF

1346 JP

12888.70

(291.95)

104.87

iShares Japan REIT ETF

1476 JP

2084.18

126.69

86.69

Listed Index Fund TOPIX Ex-Financials

1586 JP

168.04

(103.94)

84.38

NEXT FUNDS Tokyo Stock Exchange REIT Index ETF

1343 JP

3098.34

370.02

83.93

Daiwa ETF NIKKEI 225

1320 JP

26076.02

937.90

81.61

MAXIS JPX-Nikkei Index 400 ETF

1593 JP

3791.71

254.14

68.55

NZAM ETF TOPIX

2524 JP

690.49

370.29

58.36

Kokusai S&P500 VIX Short-Term Futures Index ETF - Acc

1552 JP

183.02

(359.94)

57.99

 


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

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