ETFGI Reports The ETFs Industry In Japan Gathered Net Inflows Of US$358 Million In January 2023

ETFGI, a leading independent research and consultancy firm covering trends in the global ETFs ecosystem, reported today that ETFs industry in Japan gathered net inflows of US$358 million during January. Assets invested in the ETFs industry in Japan increased by 5.1% from US$454 billion at the end of December to US$477 billion during January, according to ETFGI's January 2023 Japanese ETFs and ETPs industry landscape insights report, an annual paid-for research subscription service. (All dollar values in USD unless otherwise noted.)

Highlights

ETFs industry in Japan gathered net inflows of US$358 million in January
2nd month of consecutive net inflows.
Assets invested in the ETFs industry in Japan increased by 5.1% to reach $477 Bn at end of January.
The Bank of Japan BofJ held $285 Bn in ETFs at the end of January.

“The S&P 500 increased by 6.28 % in January. Developed markets excluding the US increased by 8.27% in January. Italy (up 14.52%) and the Netherlands (up 14.47%) saw the largest increases amongst the developed markets in January. Emerging markets increased by 6.66% during January. Mexico (up 16.53%) and Czech Republic (up 16.46%) saw the largest increases amongst emerging markets in January.” According to Deborah Fuhr, managing partner, founder and owner of ETFGI.

Japanese ETF and ETP asset growth as at the end of January 2023

ETFs industry in Japan had 273 products, with 306 listings, assets of $477 Bn, from 17 providers listed on 3 exchanges at the end of January.

Equity ETFs gathered net inflows of $1.17 Bn during January, higher than the $121 Mn in net inflows equity products reported in January 2022. Fixed income ETFs reported net outflows of $104 Mn during January, lower than the $264 Mn in net inflows fixed income products reported in January 2022. Commodities ETFs reported net outflows of $2 Mn during January, less than the $89 Mn in net outflows commodities products reported in January 2022.

At the end of January 2023, the Bank of Japan held ETFs assets of $285 Bn. During January 2023, the Bank of Japan did not purchase any ETF assets.

Substantial inflows can be attributed to the top 20 ETFs by net new assets, which collectively gathered $2.25 Bn during January. Daiwa ETF NIKKEI 225 (1320 JP) gathered $727 Mn, the largest individual net inflow.

Top 20 ETFs by net new assets January 2023: Japan

Name	Ticker	Assets (US$ Mn) Jan-23	NNA (US$ Mn) YTD-22	NNA (US$ Mn) Jan-23
Daiwa ETF NIKKEI 225	1320 JP	27,552.00	726.94	726.94
NEXT FUNDS Nikkei 225 Double Inverse Index Exchange Traded Fund - Acc	1357 JP	1,174.15	269.16	269.16
iShares Core TOPIX ETF	1475 JP	6,864.20	199.17	199.17
NEXT FUNDS Tokyo Stock Exchange REIT Index ETF	1343 JP	3,457.51	119.63	119.63
NEXT FUNDS TOPIX Banks Exchange Traded Fund	1615 JP	771.69	108.33	108.33
Rakuten ETF-Nikkei 225 Double Inverse Index - Acc	1459 JP	259.38	106.57	106.57
iShares Core Nikkei 225 ETF	1329 JP	7,274.17	94.59	94.59
Simplex - Nikkei Average Bear Double Exchange Trade Fund - Acc	1360 JP	312.94	90.71	90.71
iShares MSCI Japan High Dividend ETF	1478 JP	389.61	66.78	66.78
iShares JPX Nikkei 400 ETF	1364 JP	2,142.84	62.53	62.53
Daiwa ETF Tokyo Stock Exchange REIT Index - Acc	1488 JP	1,476.06	57.56	57.56
Daiwa ETF Japan Nikkei225 Inverse Index	1456 JP	146.41	55.97	55.97
Simplex Nikkei225 Bear -1x ETF	1580 JP	109.22	42.78	42.78
MAXIS NIKKEI225 ETF	1346 JP	13,517.08	39.94	39.94
Listed Index Fund 225	1330 JP	27,267.13	39.55	39.55
Global X MSCI SuperDividend Japan ETF	2564 JP	219.86	39.51	39.51
iShares 20 Year US Treasury Bond JPY Hedged ETF	2621 JP	181.50	38.64	38.64
MAXIS J-REIT ETF - Acc	1597 JP	1,266.26	32.94	32.94
iShares Japan REIT ETF	1476 JP	2,357.93	28.14	28.14
MAXIS J-REIT Core ETF	2517 JP	341.03	26.70	26.70

Investors have tended to invest in Equity ETFs during January.