BlackRock Japan launches yen-hedged S&P 500 ETF

Jun 23rd, 2020 | By | Category: Equities

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BlackRock Japan has launched a new ETF on the Tokyo Stock Exchange providing exposure to the S&P 500 Index while hedging currency exposure between the yen and the US dollar.

BlackRock Japan launches yen-hedged S&P 500 ETF on Tokyo Stock Exchange

BlackRock Japan launches yen-hedged S&P 500 ETF on Tokyo Stock Exchange

The iShares S&P 500 JPY Hedged ETF (2563 JP) comes with an expense ratio of 0.08% due to a contractual fee waiver in place until at least June 2021. Its gross expense ratio is 0.15%.

Dividends from the fund are distributed on a semi-annual basis.

The ETF complements BlackRock Japan’s unhedged S&P 500 offering – the iShares S&P 500 ETF (1655 JP) – which houses ¥9.6 billion ($90 million) and also comes with an expense ratio of 0.08%.

Both ETFs invest in the US-listed iShares Core S&P 500 ETF (IVV US) to gain their exposure, with the currency-hedged version additionally entering into currency forward contracts on a monthly basis to hedge exposure between the yen and the US dollar.

Nikko Asset Management also offers a yen-hedged S&P 500 ETF in Japan. The Listed Index Fund US Equity S&P 500 Currency Hedged (2521 JP) houses ¥19.3bn ($180m) and comes with an expense ratio of 0.15%.

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