The European-listed JPX-Nikkei 400 UCITS ETF offers exposure to the JPXNikkei 400 TR Index, which aims to set itself as a new benchmark for the Japanese equity market.
In recent years, Japanese companies have typically held large cash reserves and delivered low shareholder returns relative to other developed markets. This is in part a reflection of the Japanese government’s growth strategy which has aimed to revitalise the country’s equity market.
The JPX-Nikkei 400 Index seeks to provide a broad exposure, across large and small cap companies listed on the Tokyo stock exchange.
“This index has strong investor appeal,” chief development officer Michael John Lytle explained.
He added that there are signs that some companies are modifying their behaviour to ensure inclusion in the index.
CEO Ted Hood said: “Japan is an important component of the global equity market.”
The product is denominated in JPY and will trade on Xetra in EUR and on the London Stock Exchange in both USD and GBP. It is registered for sale in Austria, Finland, France, Germany, Ireland, Italy (for institutional investors only), Luxembourg, the Netherlands, Norway (for institutional investors only), Switzerland (for institutional investors only), Sweden and the UK.
