FTSE Russell has licensed the FTSE Blossom Japan Index to Asset Management One (AM-One) as the basis for the One ETF ESG, which has been listed on the Tokyo Stock Exchange and is the first AM-One ETF to track a FTSE Russell index.
ESG is becoming an increasingly popular and important investment theme in Japan. Responding to this trend, AM-One will offer an investment opportunity to both retail and institutional investors through its ETF.
The 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 Asset Management One has selected a FTSE Russell index for this new ESG ETF, which supports demand from investors in Japan to capture ESG investment opportunities. This is the second ESG ETF tracking a FTSE Russell index specifically for the Japanese market. FTSE Russell’s ESG data and indexes are increasingly being used by asset owners and pension funds around the world as we see growing interest in the integration of ESG considerations into passive investments.”