The Nikkei 225 Exchange Traded Fund (1321) is the largest Japan-listed ETF to track the Nikkei 225 index with ¥1.95 trillion in assets under management. The TOPIX Exchange Traded Fund (1306) is the largest Japan-listed ETF to track the TOPIX with ¥1.77 trillion in assets.
Additionally, there are expectations that the Government Pension Investment Fund will also increase its allocations toward domestic stocks. [Japan ETFs Could Strengthen As Institutional Money Pours Into Equities]
However, some observers caution that the central bank can only do so much. Japanese companies have to show that they are standing on solid footing.
“The BOJ can only support the bottom, but stock valuations can only be raised by the values of each company,” Takahiro Sekido, a strategist at the Bank of Tokyo-Mitsubishi UFJ, said in the article.
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Max Chen contributed to this article.