ETFGI Reports Assets Invested In ETFs and ETPs Listed In Japan Reached A Record US$556 Billion At The End Of May 2021

ETFGI, a leading independent research and consultancy firm covering trends in the global ETFs and ETPs ecosystem, reports assets invested in ETFs and ETPs listed in Japan reached a record US$556 billion at the end of May. ETFs and ETPs listed in Japan gathered net inflows of US$3.25 billion during May, bringing year-to-date net inflows to US$13.42 billion. Assets invested in the Japanese ETFs/ETPs industry have increased by 1.7%, from US$545 billion at the end of April, to US$556 billion, according to ETFGI's May 2021 Japanese ETFs and ETPs industry landscape insights report, the monthly report which is part of an annual paid-for research subscription service. (All dollar values in USD unless otherwise noted.)

Highlights

• Record $556 Billion invested in ETFs and ETPs listed in Japan at the end of May.
• Bank of Japan owns $322 Billion or 60% of total assets invested in Japanese ETFs and ETPs.
• ETFs/ETPs listed in Japan attracted $13.42 Bn in year-to-date net inflows.

“The S&P 500 gained 0.7% in May and 12.62% YTD, with positive figures for four consecutive months. Developed markets ex-U.S. gained 3.11% in May. Austria 8.29% and Luxembourg 8.12% were the leaders for the month while New Zealand lost the most at 3.92%. Emerging markets were up 2.58% at the end of May. Hungary (up 15.54%) and Poland (up 13.98%) were the leaders, whilst Egypt (down 3.86%), Chile (down 3.64%), and Malaysia (down 2.79%) were down the most.” According to Deborah Fuhr, managing partner, founder and owner of ETFGI.

The Japanese ETF/ETP industry had 235 ETFs/ETPs, with 269 listings, assets of $556 Bn, from 20 providers on 2 exchanges at the end of May 2021.

Japan ETF and ETP asset growth as at the end of May 2021

Equity ETFs/ETPs listed in Japan had net inflows of $3.74 Bn during May, bringing net inflows for the year to May 2021 to $16.59 Bn, lower than the $36.10 Bn in net inflows equity products had YTD in 2020. Fixed income ETFs/ETPs listed in Japan gathered net inflows of $89 Mn during May, bringing net inflows for the year to May 2021 to $501 Mn, much greater than the $71 Mn in net outflows fixed income products reported YTD in 2020. Commodities ETFs /ETPs listed in Japan suffered net outflows of $142 Mn during May 2021, taking net outflows for the year to May 2021 to $622 Mn, much lower than the $2.14 Bn in net inflows commodities products attracted in the same period last year.

The Bank of Japan reported owning $322 Bn in ETFs at the end of May. During May 2021, the Bank of Japan did not make ant ETF/ETP purchases.

Substantial inflows can be attributed to the top 20 ETFs by net new assets, which collectively gathered $4.55 Bn during May, the MAXIS NIKKEI225 ETF (1346 JP) gathered the largest net inflows $644 Mn.

Top 20 ETFs by net new assets May 2021: Japan

Investors have tended to invest in Equity ETFs/ETPs during May.