Japanese asset manager Mitsubishi UFJ Kokusai AM has launched a new ETF providing broad exposure to Japan’s equity market while tilting in favour of sectors and companies with lower carbon emissions. The MAXIS Carbon Efficient Japan Equity ETF (2560 JP), which has listed on the Tokyo Stock Exchange, is linked to the S&P/JPX Carbon Efficient Index and comes with an expense ratio of 0.125%.

By Jesper Koll, Senior Advisor to WisdomTree.

2020 is poised to be a great year for Japan. My main scenario is straightforward: exports get lifted by the re-acceleration of Chinese demand; and domestic demand surprises on the upside because of strong business investment, fiscal support and a steadfast rise in the purchasing power of Japanese employees.

Assets under management in ETFs (and ETPs) globally have risen above $6 trillion as of the end of November 2019, according to data from ETF industry research firm ETFGI. Total AUM rose 2.5% during the month, from $5.96tn to $6.12tn, driven by a combination of strong net inflows and healthy market performance. The industry attracted net inflows of $75.3 billion in November, the fourth-highest monthly net inflow on record.

Tokyo-based Sumitomo Mitsui DS Asset Management is set to launch a new ETF providing low-cost exposure to the broad Japanese equity market. The SMDAM TOPIX ETF (2557 JP) is scheduled to start trading on the Tokyo Stock Exchange (TSE) on 16 December 2019 and will come with a management fee of just 0.07%.

Lyxor has rolled out a euro-hedged share class for its Lyxor JPX-Nikkei 400 (DR) UCITS ETF on Xetra. The share class (JPNE GY) hedges currency risk between the Japanese yen and the euro on a daily basis.

State Street Global Advisors (SSGA) has cross-listed the SPDR Gold MiniShares (GLDMSM JP) on Tokyo Stock Exchange. The fund, which was first launched on NYSE Arca in June 2018, provides physically-backed exposure to gold. Rory Tobin, Head of the Global SPDR ETF Business at SSGA, commented, “The SPDR Gold MiniShares ETF offers a cost-effective, efficient, and highly liquid solution for investors seeking to access the risk-adjusted returns that physically-backed gold products can bring to a portfolio.”

BlackRock has listed an assortment of new share classes for three iShares ETFs on Euronext Amsterdam.

Vanguard is continuing the roll-out of accumulating share classes on its ETF range with the launch of new capitalising trading lines for five of its European listed ETFs.

New York-based ETF provider Global X has entered into a joint venture with Tokyo-based Daiwa Securities to offer selected US-listed Global X ETFs in Japan. Luis Berruga, CEO at Global X, commented, “This is an incredible and exhilarating time to be involved in the global ETF business. We’ve seen how astonishingly fast this space can evolve as investors have eagerly embraced ETFs over the last decade. In close collaboration with Daiwa, we’ll have the opportunity to extend that experience to a large and growing market that we believe will be well served by our differentiated offerings.”

Asset Management One has launched a new ETF on the Tokyo Stock Exchange (TSE), providing low-cost exposure to locally listed real estate companies. 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. With a management fee of just 0.16%, the fund offers one of the cheapest means for investors to access Japan’s property market.