Global X launches two ETFs in Japan
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Global X, the exchange traded fund provider owned by South Korea’s Mirae Asset Global Investments, has launched two ETFs in Japan almost a year after it struck a partnership with Tokyo-based Daiwa Asset Management.
The ETF provider, which has its headquarters in New York, listed the Global X Logistics J-Reit ETF and Global X MSCI SuperDividend Japan ETF on the Tokyo Stock Exchange on August 26.
The Global X Logistics J-Reit ETF tracks the TSE Reit Logistics Focus index and is the first ETF in Japan that aims to capture growth in logistics facilities in the country, Global X said.
A Reit, or real estate investment trust, is a company that owns and usually manages a portfolio of income-producing real estate. Many Reits are publicly traded on major stock exchanges.
The new Reit ETF listing brings the total of Reit-focused ETFs that listed on the Tokyo Stock Exchange to 19. Another Reit ETF managed by Nikko Asset Management is scheduled to be listed on September 7.
With its Reit ETF, Global X aims to take advantage of the increased demand for logistics facilities such as warehouses, which have benefited strongly from the coronavirus crisis as consumers shift to online shopping.
Meanwhile, the Global X MSCI SuperDividend Japan ETF invests in high-dividend shares, closely following the MSCI Japan High Dividend Select 25 index.
The launch of the SuperDividend ETF comes as income-focused funds attract renewed attention given the low interest rate environment, Global X said.
In 2019, Japan’s income-oriented equities and mixed-asset strategies attracted the most inflows among locally domiciled funds in Asia.
The ETF listings are the first by Global X in Japan since it agreed a partnership with Daiwa in 2019. The Japanese manager is backed by Daiwa’s retail distribution network and brokerage services, while Global X will provide ETF product design, research and marketing capabilities.
In March, Daiwa was reported to be planning to invest $120m into Global X as part of a move to create thematic ETFs for the Japanese market.
Global X, a specialist in themed investments, had 72 funds at end-2019, with $12.4bn in assets under management. It was wholly acquired by South Korean fund house Mirae Asset Global Investments in 2018.
Global X’s first ETF launch in Japan comes on the heels of a strong first half for Japanese ETFs, buoyed by the Bank of Japan expanding its ETF buying programme.
*Ignites Asia is a news service published by FT Specialist for professionals working in the asset management industry. It covers everything from new product launches to regulations and industry trends. Trials and subscriptions are available at ignitesasia.com.