Not that long ago the BoJ (Bank of Japan) has officially stated that they decided to abandon their 6 trillion yen target to buy ETFs (the Exchange Traded Funds). And while they are still holding on to their upper limit of 12 trillion yen for the purchases (the limitations were introduced as a measure in response to the pandemic in March 2020), they have decided to quit buying Nikkei 440 and Nikkei 225. Instead of them, they will shift to the ETFs based on Topix.
This is a major reshuffling as for the past decade the Bank of Japan was tracking Nikkei 225 and Nikkei 440, and thanks to it, they became the biggest stocks and bonds holder in the country. In February, their total ETF holdings hit the sum of 47 trillion yen.
Even despite the success, the scheme was rather unsustainable according to the critics. It …Read more