Japanese Long Dated


iShares lists massively cheap core Japanese bond ETF

iShares is listing a core Japanese government bond ETF in the land of negative yielding debt. The iShares Core Japan Government Bond ETF (2561) will track a FTSE index made up mostly of long dated Japanese government bonds. The fund will basically be free, charging just 0.06% from the starting gate.

On the surface, the fund looks like it’s for people who want no return on their money. The index’s maturity yield is less than nothing: -0.09%. While the weighted average duration is 11 years, meaning that if interest rates ever rise again in the land of the rising sun, the fund will get a thorough beating.

DWS has an ETF in Germany (XJSE) that tracks this exact index. It holds £797.6M in assets.


Franklin Templeton lists actively managed thematic ETFs

Franklin Templeton is listing three active ETFs that invest in disruptive new technology.

  • Franklin Disruptive Commerce ETF (BUYZ)
  • Franklin Genomic Advancements ETF (HELX)
  • Franklin Intelligent Machines ETF (IQM)

All three ETFs are fairly biscuit tin. 

BUYZ buys companies specialising in online shopping, payments and digital media. Franklin’s house researchers look at company fundamentals as well as how closely exposed to the investment theme they are. Weirdly, the prospectus says that the fund will mostly buy consumer discretionary stocks – not tech.

HELX buys companies helping advance the field of genomics. This will mostly mean buying biotech and pharmaceutical companies, the prospectus indicates. Companies will be chosen based on bottom up research and fundamentals (to the extent small biotechs can be said to have any). 

IQM looks kind of like yet another artificial intelligence ETF, that we saw a dozen of listed in 2018. It will also use house research and fundamentals to pick stocks.

Fees weren’t given in the prospectus.