ETF sales to rise to ¥860 billion a year from January 2027
Annual exchange-traded fund sales by the Bank of Japan (BoJ) will increase from about ¥330 billion to ¥860 billion on a book-value basis from January 2027. The estimated disposal period falls from 112 to 43 years.
Faster sales from January
The BoJ will increase annual sales of exchange-traded funds (ETFs) from about ¥330 billion to ¥860 billion on a book-value basis from January 2027.
The share of stock-market trading value rises from about 0.05 percent to about 0.1 percent.
At market value, the new annual pace amounts to about ¥2,460 billion, calculated using the market-to-book ratio of ETFs sold since January 2026.
The estimated time to complete sales falls from about 112 years to about 43 years.
These estimates divide ETF holdings outstanding at the end of September 2026 by annual book-value sales.
The BoJ will sell each ETF approximately in proportion to its share of the portfolio and spread sales over time.
Market capacity supports faster disposal
The BoJ reports that ETF sales have proceeded smoothly since January 2026 without a major market impact, while stock-market trading value has expanded.
Its disposal principles cover both ETFs and Japanese real estate investment trusts (J-REITs): obtain adequate prices while considering financial market conditions, avoid losses as much as possible and minimize destabilizing market effects.
The announced increase concerns the pace of ETF sales; the principles also apply to J-REIT holdings.
Decades of disposal remain
The faster pace still leaves an estimated 43 years of ETF sales.
The BoJ retains discretion to adjust amounts temporarily or suspend sales in response to financial market conditions.
That flexibility remains unchanged and operates within the annual sales pace.