Japan-based Nomura Asset Management has decided to take advantage of the country’s significantly low interest rates with its latest ETF set to launch.
The Next Nomura Shareholder Yield 70 ETF (2529) is comprised of the 70 most proactive Tokyo-listed companies which seek to provide shareholder returns through dividends and share buybacks. It will list on the Tokyo Stock Exchange on 19 April.
As Japan’s interest rates near zero percent, investors are actively seeking high dividend ETFs. This is a result of investors struggling to gain earnings from fixed income ETFs such as government bonds.
Many companies within Japan have been increasing shareholder yield through total dividend payments and share repurchase amounts since the fall in Japan’s interest rates. Therefore Nomura is launching the ETF in its bid to cater for the growing demand in high dividend ETFs.
Tracking the Nomura Japan Equity High Dividend 70 Index, the ETF’s current management fee is 0.28%. This will expand Nomura’s Next Fund range to 62.