Global X ETFs launches inaugural Japan-listed ETFs in partnership with Daiwa Securities
Global X ETFs has launch the company's first two Global X-branded ETFs listed in the Japanese market. Global X Japan, a joint venture between Global X ETFs and Daiwa Securities, listed the Global X J-REIT Logistics ETF (2565 JP) and the Global X MSCI SuperDividend Japan ETF (2564 JP) on the Tokyo Stock Exchange on 26 August, 2020.
Global X Japan, the joint venture first announced 9 September, 20191, aims to bring Global X’s intelligent investment philosophy to the burgeoning ETF landscape in Japan, leveraging Daiwa’s extensive capabilities and prominent reputation in the country. With nearly half of all personal financial assets in Japan held in cash, the joint venture aims to seize the substantial opportunity to educate local investors on the potential benefits of ETFs.
“Formalising our partnership with Daiwa Securities was an incredibly exciting milestone for Global X as we expand our reach across the globe,” says Luis Berruga, CEO of Global X ETFs. “The launch of these products is another exciting achievement, as we utilise our vast ETF experience to develop innovative products for a large and growing market. We’ve seen first-hand how investors around the world are increasingly looking at ETFs for lower cost, efficient, and differentiated exposures, and we are thrilled to provide these investment solutions to a new audience.”
“We’re delighted that Global X Japan launched its first domestic ETFs,” adds Koichi Matsushita, Deputy President and Head of Asset Management Division at Daiwa Securities Group Inc. “It is our joint hope and belief that the marketplace will be excited by the marriage of Global X’s ETF expertise, and our deep-rooted understanding of Japanese investors’ needs. We’re eager to see the reception to these initial products, and look forward to continuing to develop our partnership as we strive to enrich the landscape of investment options available to our clients.”
The Global X Logistics J-REIT ETF tracks the Tokyo Stock Exchange REIT Logistics Focus Index, made up of REITs involved in logistics, including warehouses, factories, and processing facilities, which see rising utilisation and demand in line with the embrace of online shopping.
The Global X MSCI SuperDividend Japan ETF tracks the MSCI Japan High Dividend Select 25 Index, made up of 25 components (23 common shares and 2 REITs) with high dividend yields. Sector exposure is capped at 20 per cent, and the fund is equal weighted to mitigate sector and security-specific concentration risks.
The two income-focused ETFs seek to provide Japanese investors access to dividend-paying strategies amidst the backdrop of historically low interest rates around the world. Global X’s US-based family of income-paying ETFs currently totals over USD5 billion in assets under management.