Mitsubishi UFJ to introduce low-cost S&P 500 and Nasdaq 100 ETFs

Feb 19th, 2021 | By | Category: ETF and Index News

Japanese asset manager Mitsubishi UFJ Kokusai is set to launch two new low-cost ETFs providing exposure to key US equity indices, the S&P 500 and Nasdaq 100.

Mitsubishi UFJ introduces low-cost S&P 500 & Nasdaq 100 ETFs

Mitsubishi UFJ is to offer the lowest-cost S&P 500 and Nasdaq 100 ETFs in Japan.

The funds are due to begin trading on the Tokyo Stock Exchange on 25 February 2021 and will don the firm’s MAXIS brand.

The MAXIS S&P 500 US Equity JPY Hedged ETF (2630 JP) will track the bellwether S&P 500 while mitigating currency risk between the yen and the US dollar.

Similar to the firm’s unhedged S&P 500 ETF, which debuted a year ago, the new fund will come with an expense ratio of just 0.078%, making it the cheapest Tokyo-listed ETF offering this type of exposure.

BlackRock Japan and Nikko Asset Management also offer JPY-hedged S&P 500 ETFs, both priced at 0.15%. The largest is Nikko’s Listed Index Fund US Equity S&P 500 Currency Hedge (2521 JP) with ¥38.1 billion ($360 million) in assets under management.

The MAXIS Nasdaq 100 ETF, meanwhile, is due to list with hedged (2632 JP) and unhedged (2631 JP) share classes and will come with an expense ratio of 0.20%, also a record low for Japan.

The fund’s closest competitor is Nikko’s Listed Index Fund US Equity Nasdaq 100 Currency Hedge (2569 JP) which houses ¥14.7bn (140m) and costs 0.25%.

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