Mirae Asset Enters Japanese ETF Market... Lists 2 Types Including Logistics REITs

"Will Fully Enter the World's 3rd Largest Japanese ETF Market"

[Asia Economy Reporter Minwoo Lee] Mirae Asset Global Investments is listing two types of exchange-traded funds (ETFs) related to logistics-focused publicly offered real estate investment trusts (REITs) and high-dividend stocks on the Japanese stock market.

Mirae Asset Global Investments announced on the 26th that it will list two ETFs, 'Global X Logistics J-REITs' and 'Global X MSCI High Dividend Japan,' on the Tokyo Stock Exchange. This is through Global X, a U.S. ETF management company acquired by Mirae Asset in 2018, and 'Global X Japan,' a joint venture established last September with Japan's Daiwa Securities Group. These are the first ETFs listed by Global X Japan, marking the beginning of full-scale business operations.

The 'Global X Logistics J-REITs' ETF is the first sector-specific REIT ETF listed in Japan. It invests in logistics-related REITs expected to benefit from the activation of e-commerce due to the COVID-19 pandemic. As of the end of last month, Japan's REIT market is the second largest in the world at approximately 13 trillion yen (about 145 trillion won), with 63 products currently listed.

Initially, the core asset group includes 10 logistics REITs accounting for 90% of the portfolio. The rest of the portfolio consists of five REITs holding logistics-related assets, with plans to gradually expand the core asset group. The underlying index used is the Tokyo Stock Exchange REIT Logistics Focus Index.

The 'Global X MSCI High Dividend Japan' ETF invests in Japanese high-dividend stocks that pay stable and high dividends. It also includes some REITs with low correlation to the market and high-dividend stocks to achieve diversification. The underlying index, the MSCI Japan High Dividend Select 25 Index, consists of 23 high-dividend stocks and 2 REITs. Since the index was calculated from the end of November 2010 to the end of June, it has shown a cumulative return of 128%, with 76% of that return coming from dividend income.

Meanwhile, according to global ETF research firm ETFGI, as of the end of June, the Japanese ETF market is valued at $414.9 billion (approximately 493 trillion won). A total of 178 products are listed. It accounts for 6.8% of the global ETF market, ranking third after the U.S. (69.4%) and Europe (15.3%). Equity ETFs make up 97.7% of the market. The market is mainly composed of institutional investors such as the Bank of Japan (BOJ).

Yoon Jooyoung, Chief Investment Officer (CIO) of Global X Japan, said, "Starting with this listing, we will introduce Global X's innovative products through Daiwa Securities Group's local network, contributing not only to financial exports but also to activating local individual investor participation." He added, "For domestic investors, it can serve as an investment alternative by investing in global income assets while also providing exposure to yen investments."