Japan's Tokyo Stock Exchange (TSE) is to list its 100th exchange traded fund (ETF), the Listed Index Fund Nikkei China Related 50, on 10 March 2011.
The addition of the new listing, managed by Japanese investment management firm Nikko Asset Management, completes the exchange's goal of attaining 100 ETFs by the end of the 2010 fiscal year, 31 March 2011.
The TSE has been working to build up its ETF market, which has been largely dominated by retail investors since its launch in July 2001.
The exchange recently unveiled its 98th and 99th ETFs, the Listed Index Fund World Equity (MSCI ACWI) ex-Japan and the Listed Index Fund Australian REIT (S&P/ASX200 A-REIT), which are to be added on 8 March and March 9 respectively.
Yasuyuki Konuma, the TSE listing department's director of business development, has stated that the exchange is keen to increase institutional usage.
In contrast to the US, where ETF trading accounts for some 20-30% of the transaction volume of the exchange, ETFs only account for about 1% of transaction volume at the TSE. “Activity on the TSE is heavily based on Japanese equities in terms of trading value,” Konuma told theTRADEnews.com. “We would like to increase trading of the ETFs. We need more involvement by the Japanese institutions.”