Key Takeaways
- • Nomura Asset Management launched the Nomura Japan Equity ETF (NJPN) on Nov. 12, 2026, priced to match the fee of BlackRock's $23 billion iShares MSCI Japan ETF (EWJ), making it the cheapest active Japan equity ETF in the market.
- • Anthony Caruso, managing director and head of ETFs and product strategy at Nomura, cited eVestment data showing 65% of active Japan equity managers beat their benchmark since 2010, versus fewer than 50% of U.S. active equity managers.
- • NJPN draws on more than 20 sector analysts covering roughly 560 to 570 Japanese stocks, with the research team attending more than 3,000 company meetings annually to score all holdings.
- • Active Japan equity ETFs capture only about 1% of flows, while the Morningstar Japan Stock category, just under $60 billion in assets, took in $11 billion year-to-date, more than the prior three years combined.
- • Nomura runs 13 ETFs with $1.8 billion in assets, has three more mutual fund-to-ETF conversions filed with the SEC slated for February, and hired Eric Lewis from J.P. Morgan Asset Management as head of ETF specialists.
Summary
Nomura Asset Management is using its position as the largest asset manager in Japan to bring an active Japan equity ETF to the U.S. market. According to Pensions & Investments, the Nomura Japan Equity ETF (NJPN) launched on Nov. 12, 2026, and intentionally matches the fee of BlackRock's $23 billion iShares MSCI Japan ETF (EWJ), the largest passive Japan equity ETF, making it the cheapest active Japan equity ETF available.
Anthony Caruso, managing director and head of ETFs and product strategy at Nomura, argued that Japan's equity market is structurally less efficient than large-cap U.S. equities, creating opportunities for active managers with local expertise. He cited eVestment data showing that since 2010, 65% of active equity managers in Japan outperformed their benchmark, compared with less than 50% in the U.S. NJPN is both fundamentally and quantitatively driven, relying on more than 20 sector analysts covering approximately 560 to 570 Japanese stocks, along with more than 3,000 annual company meetings used to score the universe. Caruso said that capturing currency policy effects and market inefficiencies is difficult to replicate without that on-the-ground research.
The MSCI Japan Index returned about 26.6% net over the year to Nov. 10, 2026. Despite this, active Japan equity ETFs remain sparse and small. Neuberger's Japan Equity ETF (NBJP) is the largest at $120 million in assets. The broader Morningstar Japan Stock category, which includes active and passive products, holds just under $60 billion and has taken in $11 billion year-to-date, which Caruso said exceeds the prior three years combined. Active Japan equity ETFs capture only about 1% of those flows, compared with more than a third of flows across the overall active ETF market. Caruso said passive vehicles likely suit investors seeking single-country exposure, while active management is better suited to long-term tactical allocation aimed at outperformance.
Nomura has 13 active ETFs totaling $1.8 billion in assets. Its largest is the Nomura Focused Emerging Markets ETF (EMEQ) at $576 million. The recent conversion of the Nomura SMID Cap Core Fund and Nomura Strategic Income Fund into ETFs added about $400 million, and three more conversions filed with the SEC are expected to go live in February. Caruso said the conversions are lowering expense ratios for investors. The firm is also expanding its capital markets and operations teams and hired Eric Lewis, formerly a client adviser at J.P. Morgan Asset Management, as head of ETF specialists.
Anthony Caruso, managing director and head of ETFs and product strategy at Nomura, argued that Japan's equity market is structurally less efficient than large-cap U.S. equities, creating opportunities for active managers with local expertise. He cited eVestment data showing that since 2010, 65% of active equity managers in Japan outperformed their benchmark, compared with less than 50% in the U.S. NJPN is both fundamentally and quantitatively driven, relying on more than 20 sector analysts covering approximately 560 to 570 Japanese stocks, along with more than 3,000 annual company meetings used to score the universe. Caruso said that capturing currency policy effects and market inefficiencies is difficult to replicate without that on-the-ground research.
The MSCI Japan Index returned about 26.6% net over the year to Nov. 10, 2026. Despite this, active Japan equity ETFs remain sparse and small. Neuberger's Japan Equity ETF (NBJP) is the largest at $120 million in assets. The broader Morningstar Japan Stock category, which includes active and passive products, holds just under $60 billion and has taken in $11 billion year-to-date, which Caruso said exceeds the prior three years combined. Active Japan equity ETFs capture only about 1% of those flows, compared with more than a third of flows across the overall active ETF market. Caruso said passive vehicles likely suit investors seeking single-country exposure, while active management is better suited to long-term tactical allocation aimed at outperformance.
Nomura has 13 active ETFs totaling $1.8 billion in assets. Its largest is the Nomura Focused Emerging Markets ETF (EMEQ) at $576 million. The recent conversion of the Nomura SMID Cap Core Fund and Nomura Strategic Income Fund into ETFs added about $400 million, and three more conversions filed with the SEC are expected to go live in February. Caruso said the conversions are lowering expense ratios for investors. The firm is also expanding its capital markets and operations teams and hired Eric Lewis, formerly a client adviser at J.P. Morgan Asset Management, as head of ETF specialists.
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