ETFGI Reports Assets Invested In ETFs And ETPs Listed In Japan Reached A New High Of $334 Bn At The End Of September 2018

ETFGI, a leading independent research and consultancy firm covering trends in the Global ETF/ETP ecosystem, reported today that assets invested in ETFs and ETPs listed in Japan reached a new high of US$334 billion, following net inflows of US$6.11 billion and market moves during September. Inflows during the month were primarily gathered by ETFs providing exposure to domestic equities, according to ETFGI’s September 2018 Japanese ETF and ETP industry landscape insights report, an annual paid-for research subscription service.  (All dollar values in USD unless otherwise noted.) 

Highlights

• Total Assets in ETFs and ETPs listed in Japan reached a record $334 Bn in September.

• Net new assets gathered by ETFs/ETPs listed in Japan were $6.11 Bn in September.
• Equity-based ETFs/ETPs gathered the largest net inflows, while leveraged ETFs/ETPs continued to see net outflows.

“Developed markets were broadly up during September following positive economic data from the US, Japan and Eurozone, despite the US-China trade dispute and on-going political tension in Europe. Developed Markets ex-US gained 0.68% during the month while the S&P 500’s winning streak tapered off, gaining only 0.57%, with mid to small cap US equities closing down. Developing markets downward trend continued, with EM markets down 1.37% and Frontier markets down 0.18%, bringing year to date declines to 8.08% and 7.56%, respectively.” according to Deborah Fuhr, managing partner and a founder of ETFGI. 

 At the end of September 2018, the Japanese ETF/ETP industry had 212 ETFs/ETPs, with 247 listings, assets of $334 Bn, from 19 providers listed on 2 exchanges. Following net inflows of $6.11 and market moves during the month, assets invested in ETFs/ETPs listed in Japan increased by 4.14%, from $321 Bn in August 2018 to $334 Bn.

 
Growth in Japanese ETF and ETP assets as of the end of September 2018



Equity ETFs/ETPs listed in Japan gathered net inflows of $6.97 Bn in September, bringing net inflows for 2018 to $54.17 Bn, greater than the $49.15 Bn in net inflows at this point last year.

Fixed Income ETFs and ETPs listed in Japan gathered net inflows of $47 Mn in September, growing net inflows for 2018 to $121 Mn, greater than the $76 Mn in net outflows at this point last year.  

Commodity ETFs and ETPs listed in Japan saw net outflows of $19 Mn, bringing net outflows for 2018 to $245 Mn, greater than the $28 Mn in net outflows at this point last year.

September marked the 11^th consecutive month of net inflows into ETFs/ETPs listed in Japan. Equity-based products maintained net inflows for the year, while Commodity-based products saw the 16^th consecutive month of net outflows.
 
The top 20 ETFs by net new assets collectively gathered $8.20 Bn during September. The TOPIX Exchange Traded Fund (1306 JP) gathered $2.47 Bn, the largest net inflow in September. 

Top 20 ETFs by new assets September 2018: Japan
 

The Bank of Japan purchased ¥723.4 Bn in ETFs over September, bringing total holdings to ¥22.44 Tn.

BOJ ETF Purchases in ¥ Tn
 


Investors have tended to invest in core, market cap ETFs in September.