ETFGI Reports That Assets Invested In ETFs And ETPs Listed In Japan Reached A Record High Of US$313 Billion At The End Of July 2018

ETFGI, a leading independent research and consultancy firm on trends in the global ETF/ETP ecosystem, reported today that assets invested in ETFs and ETPs listed in Japan reached a record high of US$313 billion at the end of July 2018, surpassing the previous record of US$312 billion set at the end of June 2018. (All dollar values in USD unless otherwise noted.)

Highlights 

• Assets invested in ETFs/ETPs listed in Japan increased by 0.35% during July 2018 to reach a record high of $313 Bn, surpassing the prior record of $312 Bn set in June 2018.
• Year-to-date, assets have increased by 13.5% from $276 Bn at the end of 2017.
• In July 2018, ETFs/ETPs listed in Japan saw net inflows of $4.49 Bn.

According to ETFGI’s July 2018 Japan ETF and ETP industry insights report, an annual paid-for research subscription service, assets invested in ETFs/ETPs listed in Japan increased by 0.35% or $1.09 Bn during the month. Year-to-date, assets have increased by 13.5% from $276 Bn at the end of 2017. At the end of July 2018, the Japanese ETF/ETP industry had 212 ETFs/ETPs, with 246 listings, from 19 providers on 2 exchanges.

Japanese ETF and ETP asset growth as at end of July 2018

In July 2018, ETFs/ETPs listed in Japan saw net inflows of $4.49 Bn. Equity products gathered the largest net inflows with $5.18 Bn, while leveraged ETFs/ETPs experienced the largest net outflows with $823 Mn. Year-to-date through end of July, ETFs/ETPs listed globally have seen net inflows of $43.6 Bn. Equity products gathered the largest net inflows with $43.8 Bn, while leveraged inverse ETFs/ETPs experienced the largest net outflows with $418 Mn.
 
“Investors favoured equities over fixed income and commodities as equity markets have performed positively in July. The S&P 500 gained 3.72%, international markets ex US were up 1.93% and emerging markets up 2.81%. Investors are still concerned about the impact of trade wars and Brexit,” according to Deborah Fuhr, managing partner and a founder of ETFGI.

Investors have tended to invest in core, market cap and lower cost ETFs during 2018, with the TOPIX Exchange Traded Fund (1306 JP) and Daiwa ETF TOPIX (1305 JP) capturing flows of $13.6 Bn and $7.30 Bn, respectively. The majority of net inflows year-to-date can be attributed to the top 20 ETFs by net new assets, which collectively gathered $42.7 Bn.

Top 20 ETFs by YTD net inflows: Japan

Source: ETFGI data sourced from ETF/ETP sponsors, exchanges, regulatory filings, Thomson Reuters/Lipper, Bloomberg, publicly available sources and data generated in-house.Note: This report is based on the most recent data available at the time of publication. Asset and flow data may change slightly as additional data becomes available.