JAPAN - State Street Global Advisors (SSgA) has exclusively revealed plans to launch global exchange traded fund (ETF) products in Japan to boost the options available to investors.
Koji Yamamoto, president and representative director of SSgA Japan, said: “ETFs have not grown in this market. There are a number of ETF distributors but the fee is very small and there is no incentive [to sell ETFs].”
Having already introduced an Asian bond ETF to the Japanese market, in addition to around seven other ETFs, Yamamoto said a vehicle such as a gold ETF was one of the products which might be offered to investors.
In February this year, Morgan Stanley claimed ETF assets under management (AuM) would surge from the current US$574bn to over $2trn by 2011.
The ETF space is still largely dominated by the US with $406.8bn in AuM, followed by Europe ($89.7bn) and Japan ($34.6bn).
During 2006, the proliferation of new ETFs continued to gather momentum, with 279 ETFs launched – more than double the 119 launched in all of 2005, and more than five times the 52 launched in 2004.
In an earlier interview with Global Pensions, Marie-Pierre Ravoteur, co-head of the EasyETF development platform jointly managed by AXA Investment Managers and BNP Paribas, said:“You could argue that there are too many products in the marketplace at present. The worst case scenario is that products are being created where there is no demand, and obviously that is bad for the industry as a whole.”
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