Global X Japan, Mirae Asset Global Investments' Japan-listed exchange-traded fund (ETF) management subsidiary, has surpassed 1 trillion yen in assets under management. Expansion of thematic and income products and rising demand from Japanese retail investors drove the growth.

Mirae Asset Global Investments said on July 13 that Global X Japan's assets under management stood at 1.14 trillion yen as of end-June. It is about $7.0 billion, or roughly 10.9 trillion won. The company said inflows continued after it first topped 1 trillion yen on May 22.

Global X Japan is Japan's first ETF specialist asset manager, founded in 2019. It has expanded its business centered on thematic products such as artificial intelligence (AI), semiconductors and covered calls.

Assets under management increased about 7.5-fold over the past 3 years. Average annual growth over the same period was 89.7 percent.

The company explained that it grew by expanding its lineup for retail and institutional investors despite the structure of Japan's market, where the Bank of Japan (BOJ) holds a high share of ETFs.

Total net inflows into Japan's ETF market this year were tallied at about $2.7 billion. Of that, about $1.5 billion flowed into Global X Japan.

Young-hwan Kim (김영환), head of the global management division at Mirae Asset Global Investments, said, "We will introduce differentiated products by combining local expertise in each global region with Mirae Asset's ETF capabilities."