Global X provides low-cost Japan exposure with ETF launch

ETF provider Global X has announced the launch of the Japan TOPIX 100 ETF (ASX: J100), providing access to Japan’s largest companies under a low-cost structure.

Launched on the ASX today, J100 is the only ETF in Australia tracking the TOPIX 100 Total Return Index, providing investors access to the top 100 companies in Japan across a number of sectors, including industrials, consumer discretionary, financials, and information technology.

With Japan being the home of many globally established companies, the fund includes big names such as Toyota, Sony, Nintendo and Canon, while the firm said it also capturing others at the forefront of long-term megatrends such as AI, semiconductors, robotics, automation and nuclear energy.

Promising low-cost access to the market, J100 has a management fee of 0.4 per cent per annum, with semi-annual distribution.

As the US becomes increasingly oversaturated, Global X said that this new market provides an opportunity for investors to capitalise on Japanese companies’ whose earnings per share growth have kept pace with the US.

After decades of deflationary stagnation, Global X senior product and investment strategist Marc Jocum said investors should be eyeing opportunities in Japan as it enters a period of sustainable earnings growth.

“After a 36-year recovery since its 1989 share market peak, Japan is finally finding its stride again, powered by corporate reform, a sharper focus on delivering value to shareholders and deep integration across global supply chains and megatrends like AI. Japan now stands on firmer footing, with renewed optimism emerging across the Land of the Rising Sun,” Jocum said.

“Tracking the top 100 names in Japan’s marquee index, J100 is the lowest cost ETF in Australia to capture the core of Japan’s equity market and provide access to a basket of blue-chip, high-quality names.”

This launch marks Global X’s 48th ETF, with the firm now managing over $14 billion in assets.

Jocum added: “Our ‘beyond borders’ approach to ETFs provide a world-class opportunity for investors looking to build out their portfolio exposure beyond Australia and the US.”