ETFGI, a leading independent research and consultancy firm covering trends in the global ETFs/ETPs ecosystem, reported today that ETFs and ETPs listed in Japan gathered net inflows of USD4.68 billion during February, bringing year-to-date net inflows to USD8.82 billion. Assets invested in the Japanese ETFs/ETPs industry have decreased by 8.3 per cent, from USD398.65 billion at the end of January, to USD365.76 billion, according to ETFGI’s February 2020 Japanese ETFs and ETPs industry landscape insights report, an annual paid-for research subscription service.
At the end of February 2020, the Japan ETFs/ETPs industry had 209 ETFs/ETPs, with 244 listings, from 19 providers listed on two exchanges.
Majority of net inflows in February and year to date have gone into equity products.
“At the end of February, the S&P 500 was down 8.2 per cent as coronavirus cases continued to spread and the potential economic impact weighed on investors and the markets,” says Deborah Fuhr, managing partner, founder and owner of ETFGI. “Outside the US, the S&P Developed ex-US BMI declined nearly 9.0 per cent. The S&P Emerging BMI lost 5.1 per cent during the month. Global equities as measured by the S&P Global BMI ended down 8.1 per cent with 49 of 50 included country indices down, while China gained 0.9 per cent.”
Equity ETFs/ETPs listed in Japan had net inflows of USD4.24 billion during February, bringing net inflows for the year to USD8.14 billion, slightly less than the USD9.48 billion in net inflows equity products had gathered at this point in 2019. Fixed Income ETFs/ETPs listed in Japan suffered net outflows of USD65 million during February 2020, bringing net outflows for the year to USD101 million, while at this point in 2019 Fixed income ETFs had gathered net inflows of USD22 million.
At the end of February 2020, the Bank of Japan held ETFs/ETPs assets of USD270 Bn. During February 2020, the Bank of Japan purchased ETF/ETP assets to the value of USD5.5 billion.
Substantial inflows can be attributed to the top 20 ETFs by net new assets, which collectively gathered USD5.36 billion at end of February, the TOPIX Exchange Traded Fund (1306 JP) gathered USD1.07 billion alone.