Market Overview

Another Japan ETF Sees Soaring Inflows

Add the MAXIS Nikkei 225 Index ETF (NYSE: NKY) to the list of Japan ETFs that are seeing a noticeable uptick in assets under management. After the close of U.S. markets Friday, Precidian Funds, NKY's sponsor, announced the ETF crossed the $200 million in assets under management mark earlier this week.

NKY appears to be benefiting from "investors seeking exposure to Japanese equities which stand to benefit most from a domestic recovery in Japan," said Dan McCabe, CEO of Precidian Funds, in a statement.

NKY debuted in July 2011 and is best described as the lone U.S.-listed ETF that serves as a tracking fund to Japan's benchmarket Nikkei 225 Index. On a percentage basis, NKY's asset growth has been impressive. As of December 2011, the ETF had less than $163 million in AUM.

NKY joined rival Japan ETFs in surging this week following Japanese elections last Sunday. The fund gained 2.8 percent for the week after Shinzo Abe cruised to victory in his bid to become Japan's next prime minister. Adding the ebullience was news that Abe's Liberal Democratic Party took a healthy majority in Japan's lower house of parliament, implying that Abe has a mandate with which to force the Bank of Japan to engage in unlimited monetary easing to weaken the yen.

Year-to-date, NKY has gained 10.2 percent, putting it well ahead of the iShares MSCI Japan Index Fund (NYSE: EWJ), the largest Japan ETF by assets.

Other Japan ETFs seeing impressive asset growth include the WisdomTree Japan Hedge Equtiy Fund (NYSE: DXJ). That ETF had had $845 million in assets at the start of trading Wednesday, but that number swelled to $956.2 million as of December 20.

Fore more on Japan ETFs, click here.

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