Sumitomo Mitsui Financial Group (SMFG), one of Japan’s largest banks, is listing an ultra-cheap core Japanese equity ETF in a reminder that Japan's ETF market is the world's cheapest.
The SMDAM Topix ETF (2557) will track the Topix, the most famous gauge of Japan’s stock market. It will charge a mere 0.07% a year.
Japan has the cheapest ETF market in the world. Most ETF providers are incumbent asset managers making products for other institutions. One of Japan’s biggest ETF buyers has been the country’s central bank.
SMFG has one other ETF – a Japan REIT tracker, which has US$830 million under management.
Japan’s most expensive core ETF charges 0.11%.
Inception DateTickerFund NameProviderFee (%p.a.)Oct. 20, 20151475iShares Core TOPIX ETFBlackRock Japan0.06May 15, 20091348MAXIS TOPIX ETFMitsubishi UFJ Kokusai Asset Management0.078Sep. 07, 20151473One ETF TOPIXAsset Management One0.078Jan. 09, 20021308Listed Index Fund TOPIXNikko Asset Management0.088Jul. 13, 20011305Daiwa ETF-TOPIXDaiwa Asset Management0.11Jul. 13, 20011306TOPIX ETFNomura Asset Management0.11