New York-based ETF provider Global X has partnered with Tokyo-based Daiwa Asset Management for a joint venture to respond to Japan’s growing demand for ETF products. The company named Global X Japan will be based in Tokyo and will expand and develop the country’s access to ETFs.
Global X hopes to offer its experience within the significantly more developed US ETF industry which holds over 50% of the global ETF assets. In comparison, half of personal financial assets in Japan is held in cash and the Bank of Japan controls 93.9% of the country’s total assets in ETFs, therefore, both parent companies believe there is room for growth.
Japan has made developments elsewhere in an attempt to develop its ETF market having started a Japan-China ETF Connectivity project.
The joint venture will be headquartered in Tokyo and will offer both US and domestic listed ETFs which Global X and Daiwa believe are suitable for local investors.
Luis Berruga, CEO at Global X, said in a statement: "We've seen how astonishingly fast this space can evolve as investors have eagerly embraced ETFs over the last decade.
“In close collaboration with Daiwa, we'll have the opportunity to extend that experience to a large and growing market that we believe will be well served by our differentiated offerings."