#Japan #Tokyo #ETF #Global X #Game & Anime

Global X Game & Anime ETF Achieves Outstanding Returns in 2024

In the latest performance rankings for Japanese stock ETFs, the Global X Game & Anime-Japanese Stock ETF [2640] has emerged as a clear winner, claiming the top spot amidst a challenging market environment. With a remarkable return of +32.8%, it significantly outperformed its nearest competitor, which achieved a return of +27.3%. This performance comes at a time when the Nikkei stock average has faced a 12% decline this fiscal year.

Global X Japan has established a strong presence in the ETF market, occupying half of the top ten performing ETFs in this ranking. This performance can be attributed to their diversified lineup of themed ETFs, focusing on trending market sectors such as gaming, anime, leisure, and fintech.

Understanding the Success of Global X ETFs

Given the dismal performance of traditional financial products that track market indices, Global X Japan's ETFs have shown that high returns are possible even in adverse conditions. The key is astute selection of themes that resonate with market dynamics. The Game & Anime ETF is particularly noteworthy.

Diverse Thematic Focus

According to Makoto Hasegawa, Head of Marketing at Global X Japan, the company's ETFs are designed to respond to emerging trends in various sectors. For example, their lineup includes funds that focus on:

• - Game & Anime
• - Leisure & Entertainment
• - Digital Innovation
• - Fintech
• - E-commerce

These sectors not only show potential for growth but also differ from conventional banking and high-dividend stock funds, offering unique investment opportunities.

Strong Monitoring and Innovative Index Development

Global X Japan continuously monitors over 100 investment themes to identify those likely to show significant performance soon. This approach includes developing indices in collaboration with index providers, factoring in historical stock performance to backtest and validate new indices. This level of innovation has allowed them to create products that outperform general market indices.

Spotlight on Game & Anime ETF

The Global X Game & Anime-Japanese Stock ETF invests in 20 selected Japanese companies involved in producing games and anime-related products and services. Notable investments include industry giants such as Sony Group, Nexon, Bandai Namco Holdings, Nintendo, and Square Enix. This sector has experienced substantial growth, expecting a 20% annual increase in the global gaming market, making it an attractive investment area.

Benefits of Digital Transformation

Digitalization within the gaming sector allows companies to profit from ongoing content updates without relying on new physical sales. This shift has increased the Customer Lifetime Value (LTV), making the sector more promising for investors. Additionally, Japan’s prominent IPs like Pokémon and Super Mario further bolster this ETF's prospects.

External Factors Affecting the Market

Moreover, the absence of tariffs on digital commerce due to a 'Digital Moratorium' is viewed as beneficial for the gaming and anime industries, as they maintain a high proportion of international sales. This lack of tariffs is expected to persist at least until March 31, 2026, enhancing the market outlook for related sectors.

Market Outlook and Investment Strategies

As uncertainty looms in the stock market due to fluctuating policies, such as those from the Trump administration, it's essential to remain focused on sectors with significant growth potential. The ETF landscape is shifting, making it crucial for investors to be selective about the sectors they choose to invest in.

How to Navigate a Challenging Market

In times of market instability, it’s vital for individual investors to avoid overreacting to short-term fluctuations. Long-term goals, such as retirement funding, should remain at the forefront, encouraging a composed investment posture. Existing strategies should be evaluated, allowing investors to capitalize on market trends without abandoning their investment journey altogether.

Utilizing ETFs Effectively

For those looking to make informed investment decisions without delving deeply into individual financial reports, ETFs offer a practical solution. With Global X providing over 50 ETF options, investors can easily find products that align with the current market conditions.

In summary, the Global X Game & Anime-Japanese Stock ETF’s stellar performance amidst a tough market showcases the importance of innovative themes and adaptability. As investors continue to navigate these evolving landscapes, products that align with growth sectors such as gaming and digital innovation are bound to remain in the spotlight.

(Article written by Megumi Fujii)