Nomura launches shareholder yield ETF in Japan

Apr 25th, 2019 | By | Category: Equities

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Nomura Asset Management has launched the Next Nomura Shareholder Yield 70 ETF (2529 JP) on Tokyo Stock Exchange.

Nomura launches high dividend ETF in Japan

The fund provides exposure to Tokyo-listed equities of firms that are providing a high level of shareholder return through dividends and share buybacks.

The fund offers passive exposure to Japanese equities that are providing a high level of return through dividends and share buybacks.

The ETF tracks the in-house Nomura Shareholder Yield 70 Index which selects its constituents from the universe of Tokyo-listed stocks that rank in the top 85% by market capitalization and in the top 500 by average daily trading value over the past 60 days. Firms operating within the financials sector are excluded.

The methodology selects 70 stocks with the highest “net shareholder yield” based on actual dividends and share buybacks over the past three years. Constituents are weighted by float-adjusted market capitalization and capped at 2%. Reconstitution occurs on an annual basis in February.

The ETF comes with a management fee of 0.28%.

According to Nomura, the fund was created to meet growing demand in Japan for high dividend strategies as investors adjust to the persistent environment of long-term interest rates effectively at zero percent.

The fund complements the Next Nomura Japan Equity High Dividend 70 ETF (1577 JP) which was introduced in 2013 and has grown its assets under management to ¥84.7 billion ($760 million). It is linked to the Nomura Japan Equity High Dividend 70 Index which selects 70 Tokyo-listed stocks based solely on dividend yield. The fund’s management fee is 0.32%.

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