BOJ May Not Bless Active ETFs as Nomura Launches First Fund

Japan is set to launch its first actively managed ETF on September 7th, with six new ETFs from issuers Simplex, Nomura, and Mitsubishi UFJ. Japan leads in Asia Pacific with over 500 billion in assets under management, but recent ETF purchases by the Bank of Japan have been minimal. Globally, active ETFs have gained popularity, with significant inflows and success stories like JPMorgan's Equity Premium Income ETF. This year has seen a surge in ETF launches, including mutual fund conversions to ETFs, indicating a growing interest in active management strategies.

What is significant about Japan's upcoming ETF launch on September 7th?

• Japan is launching ETFs with the highest assets under management globally.

• The launch includes ETFs from only one issuer.

• It is the first time Japan is launching any ETFs.

• It marks Japan's first actively managed ETFs.

Which factor has contributed to the success of the JPMorgan Equity Premium Income ETF?

• It is exclusively available in Japan.

• It has the highest management fees.

• It offers a 10% yield and low cost.

• It is the only ETF to beat the S&P 500.

How have actively managed ETFs performed compared to passive ones in the US market?

• Active ETFs have seen less interest than passive ones.

• Active equity ETFs have surpassed passive equities in flows.

• Passive ETFs have outperformed active ones in terms of yield.

• There is no significant difference in performance.

What trend is observed in the conversion of mutual funds to ETFs?

• Mutual funds are converting to bond ETFs.

• Many mutual funds are converting to actively managed ETFs.

• There is a decline in mutual fund conversions.

• Mutual funds are converting to passive ETFs.

What was notable about the iShares Climate ETF launch in Japan?

• It was the first ETF to be launched in Japan.

• It was the largest ETF launch in Japan.

• It was the smallest ETF launch in Japan.

• It was launched exclusively by the Bank of Japan.