Bringing you live news and features since 2006 

Nikko AM to list yen-hedged ETF linked to S&P 500 Index

RELATED TOPICS​

Nikko Asset Management (Nikko AM) is to launch a new ETF linked to the S&P 500 Index with a currency hedge for the yen. The ETF is due to launch on 31 July and be listed on the Tokyo Stock Exchange on 3 August.

The Listed Index Fund US Equity (S&P500) Currency Hedge provides a yen hedge on the US dollar–denominated value of the S&P 500, a core US equity index and Nikko AM says it will be the first Japan-listed ETF of its kind.
 
The company’s current ETF offerings include the Listed Index Fund US Equity (S&P500), which is linked to a yen-converted S&P 500.
 
The new ETF was developed in response to requests from institutional investors who want exposure to US equities that is not vulnerable to currency fluctuations. The price fluctuations of the new ETF and that of the existing unhedged offering differ greatly. Nikko AM says the two funds have a low correlation, which makes the new ETF effective for investors seeking diversification in their investment portfolio.
 
Listed Index Fund US Equity (S&P500) Currency Hedge is a cash creation/cash redemption type ETF, in which cash payments are made into the fund at its creation or time of subscription and payouts are made at the time of redemption or cancellation. Compared to an in-kind type of ETF that pays out cash equities at the time of creation and receives cash equities at the time of exchange, this type of instrument is convenient for financial institutions and other institutional investors because the minimum cash requirements at the time of creation and redemption are relatively low and there are relatively few days when transactions can’t be executed.
 
Nikko AM has proactively developed various types of ETFs to meet the needs of investors and will continue to build a diversified and robust portfolio of investment products that provide clients with a broad range of opportunities.
 

Latest News

European ETFs raised USD47.8 billion in Q1, a 15 per cent increase compared to the same period in 2023, according..
LSEG Lipper’s March report finds that globally equity ETFs (+EUR113.2 billion) enjoyed the highest estimated net inflows for the month,..
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..

Related Articles

Kristen Mierzwa, FTSE Russell
Index Investments Group (IIG), a division within index provider FTSE Russell, has extended its range of indices through two new...
ETFs
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.  ...
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