ETFGI reports Japan ETF assets up 59.2 per cent over 2017

ETF data provider ETFGI reports that assets invested in ETFs and ETPs listed in Japan increased by 59.2 per cent during 2017 to reach a new high of USD275.84 billion at the end of December.

Assets invested in ETFs/ETPs listed in Japan increased by USD102.53 billion during the year and ETFGI reports that according to the Central Bank of Japan, it owns approximately 75 per cent of the assets of ETFs listed in Japan.

Year-to-date, through end of December 2017, ETFs and ETPs listed in Japan saw record net inflows of USD52.62 billion.

December 2017 marked the second consecutive month of net inflows into Japanese-listed ETFs/ETPs, with USD4.00 billion gathered during the month. During 2017 ETFs/ETPs listed in Japan saw record net inflows of USD52.62 billion; 50.4 per cent more than net inflows for 2016, and over double the average for net inflows over the previous five years.

ETFGI writes that the majority of these flows can be attributed to the top 20 ETFs by net new assets, which collectively gathered USD53.28 billion during 2017. The TOPIX Exchange Traded Fund (1306 JP) on its own accounted for net inflows of USD17.23 billion.

Similarly, the top 10 ETPs by net new assets collectively gathered USD219.51 million year-to-date during 2017 and Japanese-listed Equity ETFs/ETPs saw net inflows of USD4.15 billion in December, bringing net inflows for 2017 to USD54.29 billion. Fixed Income ETFs and ETPs experienced net outflows of USD2.00 million in December, growing net inflows for 2017 to USD95.00 billion.

ETFGI writes that investors have tended to invest in lower cost and core ETFs in 2017 with the TOPIX Exchange Traded Fund (1306 JP) accumulating net inflows of USD17.23 billion.

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Beverly Chandler
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