Asset Management One launches low-cost Japan REIT ETF on Tokyo Stock Exchange

Aug 15th, 2019 | By | Category: Alternatives / Multi-Asset

Japan-based Asset Management One has launched a new ETF on the Tokyo Stock Exchange (TSE), providing low-cost exposure to locally listed real estate companies.

One AM launches Japanese REIT ETF on Tokyo Stock Exchange

The fund provides broad exposure to REITs listed on Tokyo Stock Exchange.

The One ETF Tokyo Stock Exchange REIT Index (2556 JP) tracks the Tokyo Stock Exchange REIT Index, a free-float market capitalization-weighted index based on all real estate investment trusts (REITs) listed on the TSE.

The index covers a range of REIT sectors with the largest exposures to office REITs, diversified REITs, industrial REITs, and retail REITs.

It currently has 62 constituents, the largest of which are Nippon Building Fund (7.7%), Japan Real Estate Investment (6.9%), Nomura Real Estate Master Fund (5.4%), Japan Retail Fund (4.5%), and United Urban Investment (4.1%).

The ETF may provide a suitable solution for income-seeking investors as REITs typically distribute over 90% of their taxable income to investors as dividends.

It joins a crowded field of REIT ETFs listed on the TSE with a further twelve funds tracking the same index or a derivative of it, such as a smaller ‘core’ subset.

The ETF has come to market with a management fee of just 0.16%, in line with the iShares Core Japan REIT ETF (1476 JP) and the Daiwa ETF Tokyo Stock Exchange REIT Index ETF (1488 JP).

Most other TSE-listed REIT ETFs come with management fees between 0.20% and 0.30%.

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