FTSE Russell has licensed the FTSE Blossom Japan Index to Daiwa Asset Management as the basis for the Daiwa ETF FTSE Blossom Japan Index, which has listed on the Tokyo Stock Exchange and is part of a new range of ESG-focused exchange traded funds (ETFs).
The ETF is also the first to track the FTSE Blossom Japan Index, which was launched in July this year. Daiwa Asset Management is one of the largest providers of ETFs in Japan and currently has 35 ETFs with around JPY5.4 trillion in assets under management (as of 21 September).
The new FTSE Blossom Japan Index is constructed using FTSE Russell’s ESG Ratings data model, which draws on existing international ESG standards, including the UN Sustainable Development Goals. The inclusion thresholds are aligned with the globally established FTSE4Good Index Series. The index can be used to assist in the integration of ESG considerations into a diversified strategy. The index does not deviate significantly from the index characteristics of its traditional market capitalisation weighted benchmark. To minimise industry bias, the index has been designed using an industry-neutral weighting approach to match the industry weights in the underlying FTSE Japan Index.
Evan Ong, Managing Director, Asia ETP and listed derivatives strategy and business development, FTSE Russell, says: “We are delighted that Daiwa Asset Management has selected the FTSE Blossom Japan Index for its ESG ETF. We continue to see a growing interest to integrate ESG considerations into passive investments, which we believe will help increase corporate transparency and performance”.
