China Post cross-lists Japan quality ETF to SIX

Sep 11th, 2017 | By | Category: Equities

China Post has cross-listed its Market Access iSTOXX MUTB Japan Quality 150 Index UCITS ETF (MAJQ) to SIX Swiss Exchange (SIX). The smart beta equity fund will now be available to trade in yen on SIX, in addition to the existing listing in euros on Deutsche Börse (Ticker: M9SQ).

China Post cross-lists Japan quality ETF to SIX

The new listing on SIX will trade in Japanese yen.

The ETF tracks the iSTOXX MUTB Japan Quality 150 Index. To construct the index, stocks in the broad market iSTOXX Japan 600 Index are ranked by a composite score of fundamental ratios including return-on-equity, debt-to-capital, cash flow generation ability and business stability. The top 150 stocks are selected for inclusion in the index and weighted by market capitalisation.

The index, which has returned 27.3% in the year to 11 September 2017, is dominated primarily by three sector exposures – industrials (26.8%), consumer cyclical (25.8%) and consumer non-cyclical (20.9%). The largest individual components in the index are Toyota (2.1%), Murata (2.1%) and Dalkin Manufacturing (2.1%).

The yearly return of 27.3% compares favourably to the return of 19.1% for the parent iSTOXX Japan 600 Index over the same period. While these findings only compare the two returns over the past year, it does support the notion that a portfolio of high quality companies can outperform the broad market over long time periods.

The ETF was initially launched on Deutsche Börse in May 2017 and currently has ¥3.3 billion (approximately €25 million) in assets under management with an expense ratio of 0.50%.

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