In response to global developments such as digitization, globalization, and aging, the ETFs focus on Japanese industrial businesses that are globally competitive. The funds consist of three growth-themed products (games and animation, robotics and AI, bio and medical technology) and one that invests in major global competitive stocks. The newly-listed ETFs are as follows: Global X Japan Robotics & AI ETF (2638), Global X Japan Bio & Med Tech ETF (2639), Global X Japan Games & Animation ETF (2640), and Global X Japan Global Leaders ESG ETF (2641). ETFs are vehicles that contain a portfolio of funds, allowing investors to considerably reduce their risk while diversifying their investments, though they can outsize gains for investors compared to the S&P 500.
Japan leads technological advancement
The Global X Japan Robotics & AI ETF invests in up to 40 Japanese-listed stocks grouped into eight sub-themes, including “industrial robotics and automation” and “big data.” With growing concerns about a labor shortage resulting from Japan’s aging population, robotics and artificial intelligence demand is projected to rise. The Index measures Japanese firms’ performance in developing robots and artificial intelligence (AI) and those projected to profit from greater acceptance and utilization of these technologies. The Global X Japan Bio & Med Tech ETF will include up to 35 stocks listed on the Tokyo Stock Exchange and the JASDAQ that fall into four sub-themes: “Pharmaceuticals,” “General Pharmaceuticals,” “Medical Devices,” and “Medical Services & Software.” Experts predict the healthcare industry will grow as a result of an aging population. The Global X Japan Games & Animation ETF is the country’s first product that invests in Japanese firms that create and distribute games, animations, and cartoons; this sector is projected to expand due to a transition to digital distribution. The Index consists of 20 stocks listed on the Tokyo Stock Exchange and the JASDAQ that fall into five categories: “game development-related” and “E-sports operation and league management.” Moreover, the Global X Japan Global Leaders ESG ETF comprises 20 stocks from the Tokyo Stock Exchange and JASDAQ with a high foreign sales ratio, overseas client ratio, and worldwide share. It intends to invest in Japanese companies with a global footprint. Akihiko Kanamura, President of Global X Japan Co., Ltd., stated: The announcement of the list to the Tokyo Stock Exchange indicates that following future trends and providing diversity to the country’s investors are the aims of thematic ETF investing in Japan by bringing the next innovative and tailored product to the Japanese market. [robinhood]