Japan’s Active ETF Push Faces Hurdles as Investors Flee
- Bourse plans to launch active products amid liquidity worries
- Investors say Japan’s ETF market is too small, lacks appeal
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Japan’s foray into listing actively managed exchange-traded funds next year may do little to boost liquidity for a market faced with foreign outflows, investors say.
The Tokyo Stock Exchange is planning to launch these ETFs in June as a way to stem thinning volumes and remain competitive against global peers, the bourse’s senior manager of equities Kei Okazaki said in an interview last week. The introduction comes after years of internal discussion on how to attract more foreign investors, he added.