Global X Japan surpasses $773.7 mn in AUM 2 years after market entry

[Courtesy of Global X]

Mirae Asset Global Investments Co. announced on Friday its joint venture, Global X Japan, has surpassed 100 billion yen ($773.7 million) in assets under management, a milestone achieved just over two years after its first ETF product was launched, demonstrating its competitiveness in Japan.

Japan’s ETF market, valued at around 60 trillion yen, is dominated by index-tracking ETFs such as TOPIX and Nikkei225 funds, accounting for 85 percent of the total. Since its inception, Global X Japan has focused on thematic, income and core ETFs after their growth potential was recognized.

Global X Japan has continued to strengthen its lineup of thematic and income ETFs to meet the diverse needs of Japanese investors.

“While specialized ETF products such as thematic and income ETFs are still in their infancy in the Japanese market, we are seeing a lot of interest from not only local retailers but also institutions such as large insurers,” said a Global X Japan spokesperson. “Given the size of the Japanese economy, we expect growth to continue.”

Global X Japan was established in September 2019 as a joint venture between Global X, the U.S. ETF management subsidiary of Mirae Asset Global Investments, and Japan’s Daiwa Securities Group. It’s the only specialized ETF manager in Japan.

Global X Japan, which first listed the Global X MSCI SuperDividend Japan ETF on the Tokyo Stock Exchange in August 2020, has introduced a total of 27 ETFs to date. Key products include the Global X Japan Semiconductor ETF, which invests in Japan’s leading semiconductor equipment and materials companies, and the Global X Japan Game & Animation ETF, which invests in the Japanese gaming industry that has strong intellectual property and content competitiveness.

Recently, the company gained traction with the launch of new overseas themed and income products such as the Global X S&P 500 Dividend Aristocrats ETF which invests in the global market, especially in the U.S.

With interest from Japanese investors surging, especially for innovative themes, Global X Japan has been able to rapidly grow its assets under management through local marketing and its own fundraising efforts.

“Global X Japan will continue to strive to diversify our ETF lineup to further strengthen our presence in Japan and provide investors with more choices,” the spokesperson said.