Big in Japan

ETFs are booming in Japan, hitting record assets, despite short term fluctuations that saw outflows through June. Assets in ETFs in Japan now total USD648 billion, reflecting a 13.2 per cent increase year to date, according to data from ETFGI.

This year we are launching our inaugural APAC ETF awards with our Japanese event. Vote now for your favourite issuers, drawn from data provided by Trackinsight, and service providers on the Japanese market using this link.

We spoke with Andrew Jamieson of Citi this week on the planned launch of their Citi Velocity platform, designed to support UCITS ETF launches with HANetf, the firm in which they also confirmed an investment last week. Jamieson observes a technology transfer in the asset management community, moving from mutual funds to ETFs. “All asset managers will have to have an ETF capability,” he says. “ETFs are no longer passive products or a quirky niche offering – rather this will become core for all asset managers and all of them are now scrambling to deliver an ETF solution.”

More booming ETF news comes from India’s Zerodha Fund House whose report on the growth of ETFs in India reveals that the remarkable expansion of ETFs has been fuelled by multiple factors, most notably the entry of new fund houses that focus exclusively on passive investment strategies. These firms are tapping into a growing appetite for simplified and cost-efficient investment products among retail investors, writes Ketaan Ram Kataria in our piece.

Vishal Jain, CEO of Zerodha Fund House, says: “This study reflects a new era for Indian ETFs, characterised by surging retail participation and expanding product diversity. As a result, we are seeing stronger volumes and increased investor confidence in passive investing.”

Beverly Chandler, Managing Editor

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