Japanese asset manager Mitsubishi UFJ Kokusai AM has launched the MAXIS TOPIX Ex-Financials ETF (2523 JP) on Tokyo Stock Exchange (TSE), providing broad exposure to Japanese equities excluding those operating in the financials sector.

The fund provides broad exposure to Japanese equities excluding those from the financials sector.

The fund is linked to the TOPIX Ex-Financials Index, a derivative of the TOPIX Index – a leading reference for Japan’s equity market, consisting of all domestically listed stocks (over 1,800 companies) on the First Section of the TSE.

The fund’s index consists of all TOPIX constituents except firms classified within the following industry categories: Banks, Securities and Commodities Futures, Insurance, and Other Financing Business. This reduces the constituent count to 1,935, compared to 2,116 for the parent index.

Similar to the parent index, the TOPIX Ex-Financials Index is weighted by market capitalization. The largest stock in the index is Toyota at 3.9%, followed by Nippon Telegraph & Telephone (1.6%).

The fund comes with an expense ratio of 0.11%.

Similar funds are offered on TSE by Daiwa Asset Management, Nikko Asset Management, and Norinchukin Zenkyoren Asset Management. The cheapest is Nikko’s Listed Index Fund TOPIX Ex-Financials ETF (1586 JP) with an expense ratio of 0.09%. It is also the largest with ¥24.3 billion ($220 million) in assets under management.