In today’s briefing:
- Continued Creation of JPX Prime 150-Type Passive Funds Will Help Solve TOPIX Challenges
Continued Creation of JPX Prime 150-Type Passive Funds Will Help Solve TOPIX Challenges
- TOPIX-Type passive funds have the challenges of buying stocks that aren’t of high quality and of not providing sufficient engagement. JPX Prime 150 is expected to resolve these issues.
- Some believe that JPX Prime 150, a market capitalization-weighted index, shows little difference in performance from TOPIX. However, more careful engagement will contribute to value creation in the long run.
- The continued creation of passive funds linked to the JPX Prime 150 Index is expected to further highlight high quality companies.