ETFGI Reports ETFs And ETPs In Japan Gathered Net Inflows Of US$6.58 Billion During July 2020

ETFGI, a leading independent research and consultancy firm covering trends in the global ETFs/ETPs ecosystem, reported today that ETFs and ETPs listed in Japan gathered net inflows of US$6.58 billion during July, bringing year-to-date net inflows to US$51.54 billion significantly more than the US$26.44 billion gathered at this point in 2019 and significantly more than the net inflows of US$36.72 billion gathered in all of 2019. Assets invested in the Japanese ETFs/ETPs industry have decreased by 1.2%, from US$420.41 billion at the end of June, to US$415.33 billion at the end of July taking assets to the third highest level on record, according to ETFGI's July 2020 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

• The Bank of Japan held $304 Bn or 73% of all ETFs/ETPs assets in Japan at the end of July.
• YTD net inflows are $51.54 Bn significantly more than the $26.44 Bn gathered at this point in 2019 and significantly more than the net inflows of $36.72 Bn gathered in all of 2019.
• Assets of $415.33 Bn invested in ETFs and ETPs listed in Japan is the third highest on record.

“The S&P 500 gained 5.6% in July, aided by the U.S. Federal Reserve stimulus and strong earnings.   International markets also gained, with Developed Ex-U.S. and Emerging up 3.0% and 8.5%, respectively. In the developed markets Scandinavian countries benefited most, led by Norway (up 10.8%) and Sweden (up 10.1%); while Japan (down 2.0%) was the sole negative performer among developed countries. Dollar weakness contributed toward the positive momentum in Emerging markets where 19 of 25 countries gained, led by Brazil (up 14.4%) and Pakistan (up 13.4%), while Taiwan (up 12.1%) neared an all-time high.” According to Deborah Fuhr, managing partner, founder and owner of ETFGI.

At the end of July 2020, the Japanese ETF/ETP industry had 210 ETFs/ETPs, with 244 listings, assets of US$415 Bn, from 19 providers on 2 exchanges.

Japan ETF and ETP asset growth as at the end of July 2020

Equity ETFs/ETPs listed in Japan had net inflows of $6.80 Bn during July, bringing net inflows for the year to July 2020 to $46.71 Bn, much higher than the $27.36 Bn in net inflows equity products had in the year to July 2019. Leveraged ETFs/ETPs listed in Japan saw net outflows of $341 Mn during July, bringing net inflows for the year to July 2020 to $1.96 Bn, higher than the $3.75 Bn in net outflows leveraged products reported in the year to July 2019.
 

Fixed Income ETFs/ETPs listed in Japan saw net inflows of $35 Mn during July 2020, taking net inflows for the year to July 2020 to $120 Mn, higher than the $113 Mn in net inflows Fixed Income products attracted in the year to July 2019.

The Bank of Japan held $304 Bn or 73% of all ETFs/ETPs assets in Japan at the end of July.   During July 2020, Bank of Japan purchased ETF/ETP assets to the value of $6 Bn.

Substantial inflows can be attributed to the top 20 ETFs by net new assets, which collectively gathered $6.90 Bn during July, the TOPIX Exchange Traded Fund (1306 JP) gathered $2.34 Bn alone.

Top 20 ETFs by net new assets July 2020: Japan

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