Japan Likes Leveraged ETFs

August 20, 2012


The poor performance of the Nikkei has Japanese investors interested in short-term gains produced by inversed and leveraged exchange-traded products, according to an article on Barron’s.

As of July, Japan only had 105 ETFs, with $43.65 billion in assets. Investors have gravitated toward the newly launched Next Funds Nikkei 225 Leveraged Index ETF and the Next Funds Nikkei 225 Inverse ETF, as they have gathered $243 million since March 2012, the article said.

There are a few factors holding up the development of Japan’s ETF market. Retail brokers are reluctant to work with lower fees, and U.S. sponsors aren’t entering the market, as they already have global ETFs that provide exposure to Japanese institutions, writes Barron’s.

To read full the perspective, check out Barrons.com.




Lean why bond ETFs are an essential part of a diversified portfolio with our bond ETF channel.

Learn how currency-hedged ETFs can reduce the currency risk in your portfolio.


Investors poured money into riskier segments of the market, like small-caps and junk bonds, on Thursday, Oct. 8.

Inflows into 'SPY' and 'JNK' helped boost total assets for SSgA by more than $3.5 billion on Thursday, Oct. 8.


By Dave Nadig

Sometimes it pays to think beyond the label when it comes to the giants.

By Dave Nadig

Five consequences of the proposed rules the SEC put out yesterday.

By Sumit Roy

It's never happened, but it could.

By Dave Nadig

Think twice before getting excited.


By Denise Krisko

Managing liquid alt strategies.

By Scott Eldridge

Protecting your fixed income allocation in a volatile rate environment.

By iShares

How currency-hedged ETFs can help U.S. investors investing in international stocks.