Mirae Asset's Global X Japan Lists 'ESG ETF'

[Asia Economy Reporter Junho Hwang] Global X Japan launched the first ETF investing in clean tech in the Japanese market on the 5th.

Mirae Asset Global Investments announced that Global X Japan, a local Japanese subsidiary jointly established by its overseas ETF operator Global X and the Daiwa Group, listed two new ETFs on the Tokyo Stock Exchange on the 31st.

The newly listed ETFs are the Global X MSCI Governance Quality Japan Equity ETF, which invests in ESG, and the Global X CleanTech ESG Japan Equity ETF.

The MSCI Japan ETF, as its name suggests, is a product that selects and invests in Japanese listed companies with excellent governance and financial factors. Governance monitors potential corporate risks, while financial factors evaluate the organizational health of companies. This ETF tracks the MSCI Japan Governance Quality Index. The index is composed of 125 stocks selected from 300 large and mid-cap stocks that make up 85% of Japan’s market capitalization in the MSCI Japan Index, reflecting 11 governance and 3 quality factor scores.

The CleanTech ESG Japan ETF is the first product in the Japanese market to invest in clean tech. It invests in companies possessing technologies to solve environmental issues (CleanTech) and tracks the FactSet Japan CleanTech & Energy Index. This index consists of 30 to 40 Japanese listed stocks with a market capitalization of over 30 billion yen and an average daily trading volume of over 200 million yen, focusing on companies with high revenues related to energy efficiency, batteries, renewable energy, pollution control, and resource management. The stock weights are determined by the environmental (E) score within ESG. Japan aims to realize a decarbonized society in the long term based on the Paris Agreement adopted at the 2015 UN Climate Change Conference. It is promoting an 80% reduction in greenhouse gases by 2050, anticipating growth in the clean tech industry.

A Global X Japan official stated, "ETFs are products with high utility for asset management as they allow low-cost diversified or long-term investment, and the Japanese ETF market is expected to grow further."

Meanwhile, the newly listed ETFs can be traded through overseas stock accounts at domestic securities firms such as Mirae Asset Securities.

This content was produced with the assistance of AI translation services.