Nomura Asset Management has announced the launch of the first cross-listed exchange-traded funds (ETFs) between Japan and Taiwan, thereby broadening investor access across both markets.
Nomura to Launch First Cross-Listed ETFs in Japan and Taiwan
The company announced that the ETFs will debut on the Tokyo Stock Exchange and the Taiwan Stock Exchange on 18 September.
The move is expected to give investors in Japan and Taiwan easier mutual access to each other’s capital markets while diversifying investment opportunities.
In Japan, Nomura will introduce the “NEXT FUNDS TIP FactSet Taiwan Innovative Technology 50 Index Exchange Traded Fund” (code: 412A, nickname: NF Taiwan Tech 50 ETF).
The fund will track the TIP FactSet Taiwan Innovative Technology 50 Index, which selects companies that generate most of their revenues from the technology sector.
Nomura explained that eligible stocks are chosen based on factors including research and development activity, stock price momentum and profitability, before narrowing down to the top 50 by market capitalisation.
At the same time, Nomura Asset Management Taiwan will list the “NEXT FUNDS – Nomura TOPIX Feeder ETF” (code: 009812) in Taipei.
The fund is designed to track the performance of the TOPIX Total Return Index, providing Taiwan investors with exposure to the largest ETF in Japan, the NEXT FUNDS TOPIX ETF.
Nomura Asset Management, which listed its first ETF in Japan in 1995, manages more than ¥40 trillion ($265 billion) in ETFs as of July, accounting for 43% of Japan’s ETF market by assets under management and the largest share in Asia.
