Bringing you live news and features since 2006 

Japan flag

Source launches first European-listed ETF to track JPX-Nikkei 400 index


Source has launched the Source JPX-Nikkei 400 UCITS ETF, which provides exposure to the JPX-Nikkei 400 TR Index, a new benchmark for the Japanese equity market.

In recent history Japanese companies have typically held large cash reserves and delivered low shareholder returns relative to other developed markets. 
The JPX-Nikkei 400 Index provides broad exposure, across the large-cap, small-cap, growth and innovation segments of the Tokyo Stock Exchange. However, unlike other benchmarks, it focuses on companies with the potential to generate shareholder value. 
Developed by Nikkei and the Japan Exchange Group, the index selects stocks on the basis not only of size, but also return on equity, operating profit and corporate governance.
“This index has strong investor appeal,” says Michael John Lytle, chief development officer at Source. “It comprises companies that use their capital efficiently and meet global standards of corporate governance.” 
Since its launch in January 2014, the JPX-Nikkei 400 Index has already been adopted as a benchmark by major institutional investors, such as Japan’s Government Pension Investment Fund.
“There are also signs that some companies are modifying their behaviour to ensure inclusion in the index,” Lytle says. “We have seen an increase in share buybacks and dividend payments, and more companies appointing external directors.”
“Source is delighted to be providing European investors with exposure to the JPX-Nikkei 400 TR Index,” says Source CEO Ted Hood. “Japan is an important component of the global equity market and, as such, we aim to deliver the highest quality exposure. It is interesting to see a benchmark that is not solely focused on market capitalisation gain such rapid acceptance.”
The Source JPX-Nikkei 400 UCITS ETF is denominated in JPY and will trade on Xetra in EUR and on the London Stock Exchange in both USD and GBP. It is registered for sale in Austria, Finland, France, Germany, Ireland, Italy (for institutional investors only), Luxembourg, the Netherlands, Norway (for institutional investors only), Switzerland (for institutional investors only), Sweden and the UK.

Latest News

Morningstar has published a review of the European ETF market for the first quarter 2024, which finds that it gathered..
ETF data consultant ETFGI reports that assets invested in the global ETF industry reached a new record of USD12.71 trillion..
Calastone has published an ETF white paper which examines several of the processes that take place across the lifecycle of..
Adapting product lines to fit into changing methodologies and meet shifting demand is essential to remaining relevant in the industry..

Related Articles

US ETF issuers of active ETFs are facing an increase in fees from the big custodian firms, such as Charles...
Taylor Krystkowiak, Themes ETFs
Themes ETFs opened its doors in December 2023, with an introductory suite of 11 ETFs – seven thematic and four...
Konrad Sippel, Solactive
At the end of March, financial index specialist, Solactive, published its 2024 annual report on future trends.  ...
Lorraine Sereyjol-Garros, BNP Paribas
Following changes to the French Monetary and Financial Code and of the French market authority AMF’s General Regulation, it is...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by