Abu Dhabi Securities Exchange Welcomes First ETF Tracking Japanese Equities

Abu Dhabi Securities Exchange (ADX) has listed the Chimera S&P Japan UCITS ETF, marking the first ETF tracking Japanese equities on ADX. Managed by Abu Dhabi-based Lunate Capital LTD, the ETF replicates the performance of the S&P Japan BMI Liquid 35/20 Capped Index. It tracks 30 liquid Japanese companies listed on the Tokyo Stock Exchange, including Honda Motor Co, Toyota Motors Corp, Sony, and Softbank Group.

Trading under the ticker symbol JPANI, this ETF offers investors direct access to the Japanese market. This listing further solidifies ADX’s position as a leading ETF marketplace in the region. It is the 13th ETF listing on ADX, providing investors access to nine regional and global markets, including those in the UAE.

ETF trading values on ADX have surpassed AED5.2 billion in 2023, reflecting an increase of nearly 161 percent from the previous year. Total ETF trading volumes have reached 1 billion units, representing a 205 percent year-on-year growth. Abdulla Salem Alnuaimi, Group Chief Executive Officer of ADX, congratulated Lunate Capital for this successful listing.

Alnuaimi highlighted that this is the third ETF to launch on ADX this year and the 13th overall. He emphasised ADX's growing reputation as an ETF hub in the MENA region and its commitment to supporting Abu Dhabi's economic diversification agenda by providing new opportunities for portfolio diversification and long-term growth.

The listing of the Chimera S&P Japan UCITS ETF enhances ADX's connectivity and allows investors to capitalise on Japan's stock market performance. Alnuaimi noted a significant increase in average daily traded value on ETFs, from AED8 million in 2022 to around AED21 million in 2023, underscoring ADX's dedication to expanding investor options.

Sherif Salem, Partner & Head of Public Markets at Lunate, remarked that this listing broadens investor access to key global markets, including those in Asia. He stated that this launch supports efforts to attract more investors to UAE's financial markets and is a testament to their confidence in UAE's dynamic economy.

Strategic Approach and Future Prospects

The Chimera S&P Japan UCITS ETF is designed as a physical, in-kind, liquid, and fully fungible fund. It tracks Japanese equities listed on the Tokyo Stock Exchange and intends to distribute dividends semi-annually when available. This listing aligns with ADX’s strategic approach to offering diversified and innovative investment solutions catering to evolving needs of both retail and institutional investors globally.

With inputs from WAM