The Bank of Japan's $430 Billion ETF Habit

The video discusses the role of ETFs globally and specifically in Japan, where the Bank of Japan (BOJ) uses them to influence the market. The BOJ holds a significant portion of Japan's ETF market, and any unwinding of these holdings could lead to market volatility both domestically and globally. The BOJ has various tools at its disposal to adjust its policies, including altering its bond and ETF purchase programs. The potential policy changes and their implications are explored.

What might happen to the market if the Bank of Japan reduces its ETF purchases?

What is the current cap on the Bank of Japan's ETF purchases?