June and July 2008 euromoney.com - Friday, July 11, 2008
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Tokyo Exchange will increase the number of ETFs to 100
"As of the end of June, we had 35 ETFs. As for our goal of raising the number to 100, I believe we will be able to make it happen. Why? For example, we are negotiating with US and European exchanges to get their ETFs listed in Tokyo as well. Their responses have been positive. But the TSE has nothing to do with management of such ETFs. So the attitude of asset managers is crucial to success."
"Asset managers say, “It will be fine to list our funds on the exchange, but it will be too costly and there will be little merit for us if they are not traded actively enough.” It is true that in Japan, the number of ETFs has been limited and trading has been slow. Only recently, thanks to a surge in media coverage of ETFs, trading volumes are rising and the overall transaction value is getting closer to that of the Second Section of our stock exchange. I think the ETF section is likely to become more popular if commodities-based ETFs are listed."
"Trading fees for ETFs are low, while we do not charge management and custody fees. As we have Topix 500 and Topix 1000 index funds on the ETF section, it is tantamount to be trading 500 or 1,000 issues. You can buy ETFs little by little – a few lots each time. ETFs are not an instrument that is hotly traded. I think ETFs are suitable for Japanese people’s asset build-up plans with long-term management aimed at gaining returns on investment over a period of 20 to 30 years. "
You can read the full interview here
