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Northern Trust Global Investments (NTGI), the asset management arm of Northern Trust Bank, today announced the launch of the first dedicated ETF to be based on the Tokyo Stock Exchange REIT Index. NETS™ Tokyo Stock Exchange REIT Index Fund (Japan) commenced trading on the NYSE Arca Exchange today under the ticker symbol JRE, granting U.S. investors the opportunity to invest in the Japanese real estate market via an ETF.
NETS™, or Northern Exchange Traded Shares™, are designed to provide ETF-based exposure to important markets around the world using the world's best recognized benchmarks. The REIT index is composed of all REITs listed on the Tokyo Stock Exchange, which is the largest J-REIT market in Japan.
Tomoyoshi Uranishi, Senior Executive Officer of the Tokyo Stock Exchange, Inc., said: "Following the listing of an Exchange Traded Fund based on the TOPIX this April, the TSE is delighted with the NYSE Arca's listing of an Exchange Traded Fund based on the Tokyo Stock Exchange REIT Index. The REIT index is composed of all REITs listed on the TSE, which is the largest J-REIT market in Japan. This ETF enhances convenience for non-Japanese investors by increasing the number of tools for investing in Japanese real estate at their disposal. We anticipate that the cross-border flow of capital between Japan and the rest of the world will be enhanced even further, through this listing."
Peter K. Ewing, head of NTGI's ETF business, said: "This latest launch extends the NETS™ product line to include a key benchmark for another important asset class. Japanese real estate represents over 10% of investment opportunities in the global real estate market."
Lisa M. Dallmer, SVP, Global Index and Exchange Traded Products, NYSE Euronext said: "We welcome NETS™ Tokyo Stock Exchange REIT Index Fund to NYSE Arca. As the world's leading, most international exchange group listing NETS funds, offering our venue to NETS and the NETS product strategy brings investors another opportunity to look beyond home-country bias and extend their portfolio to international investing."
NETS™, like many other ETFs, offer certain advantages over mutual funds, including lower expense ratios, higher liquidity (in the form of intraday trading and pricing), reduced portfolio turnover and the ability to sell ETF shares short. NETS™, which are available to both institutional and individual investors alike, may be purchased via U.S. brokerage accounts and through registered investment advisors (RIAs). (ETFs are subject to trading expenses which may affect the expense benefits depending on the frequency of trades.)
