Industry Distribution: Real Estate (100%)

TOP 3 Markets:

1. Office Real Estate: approx. 40%
2. Retail Real Estate: approx. 30%
3. Residential Real Estate: approx. 20%

The NEXT FUNDS Tokyo Stock Exchange REIT Index ETF mainly invests in real estate REITs listed on the Tokyo Stock Exchange. The revenues are exclusively generated from the real estate sector, with a focus on office, retail, and residential properties.

This distribution reflects the structure of the Japanese REIT market, which is heavily influenced by office and retail spaces. Residential properties are also a significant component, but to a lesser extent than the other two categories.

NEXT FUNDS Tokyo Stock Exchange REIT Index Exchange Traded Fund (TSE:1343)

As this fund is an Exchange Traded Fund (ETF), it does not produce physical products. ETFs are financial instruments that track an index, commodities, bonds, or a basket of assets. The NEXT FUNDS Tokyo Stock Exchange REIT Index ETF tracks the Tokyo Stock Exchange REIT Index, which consists of a variety of real estate investment trusts.

The fund itself is managed by Nomura Asset Management, which is a financial services company and does not operate physical production facilities. Instead, the "production" involves the management and replication of the underlying index.

Current Strategy: Diversification and Internationalization
Focus on Sustainable Investments: Increase by 20% (estimated, 2024)
Expansion of Real Estate Portfolio: 15% growth in Asian markets (estimated, 2024)

The NEXT FUNDS Tokyo Stock Exchange REIT Index ETF pursues a strategy of diversification and internationalization to secure future growth. This includes increased investment in sustainable real estate projects to meet the rising demands for ESG criteria.

Additionally, the fund plans to expand its real estate portfolio in Asian markets to benefit from the growth opportunities there. This strategy aims not only to diversify risk but also to increase return potentials through geographical diversification.

Commodities/Materials: No direct imports

Countries of origin: Not applicable

The NEXT FUNDS Tokyo Stock Exchange REIT Index Exchange Traded Fund (TSE:1343) is an exchange-traded fund (ETF) that tracks the Tokyo Stock Exchange REIT Index. As a financial fund, it does not directly import any commodities or materials. Instead, the fund invests in real estate investment trusts (REITs) operating in Japan.

The REITs in which the ETF invests may be indirectly affected by imports of commodities and materials needed for the construction and maintenance of real estate. However, these imports are handled by the individual REITs and not by the ETF itself.

Current Price (2025): Not available
Dividend Yield (2023): 3.5%
Assets Under Management (2023): 1.2 billion USD

The NEXT FUNDS Tokyo Stock Exchange REIT Index ETF (TSE:1343) provides investors with access to a diversified portfolio of real estate funds listed on the Tokyo Stock Exchange. The competitive advantage of this ETF lies in its broad diversification and the opportunity to invest in the Japanese real estate market without having to select individual REITs.

Another advantage is the relatively high dividend yield, which was around 3.5% in 2023, making it attractive for investors seeking regular income. Additionally, the ETF benefits from the stability and liquidity of the Japanese real estate market.

However, the competitive advantage could be influenced by factors such as interest rate changes and regulatory changes in the real estate sector. Nevertheless, the ETF offers a cost-effective way to invest in an important market, making it an attractive option for diversified portfolios.

Institutional Investor Share: Estimated 60-70% (2025)

Insider Buys/Sells: No significant insider transactions reported (2025)

The institutional investor share in Exchange Traded Funds (ETFs) such as the NEXT FUNDS Tokyo Stock Exchange REIT Index ETF is typically high, as these funds are often held by large investment firms and pension funds. The estimated share of 60-70% reflects the general interest of institutional investors in diversified real estate investments.

Insider transactions are less relevant for ETFs, as they are funds that track an index and not individual companies with specific insider activities. Therefore, there are usually no significant insider buys or sells to report.

Market share of NEXT FUNDS Tokyo Stock Exchange REIT Index ETF (TSE:1343): Estimated around 12% (2025)

Top competitors and their market shares:

1. iShares Core J-REIT ETF: around 15%
2. Nomura Real Estate Master Fund: around 14%
3. Mitsubishi UFJ J-REIT ETF: around 13%
4. Daiwa House REIT Investment Corporation: around 11%
5. Japan Real Estate Investment Corporation: around 10%

Moat Analysis:

The NEXT FUNDS Tokyo Stock Exchange REIT Index ETF (TSE:1343) has a moderate moat, mainly created by its diversification and tracking of the Tokyo Stock Exchange REIT Index. This diversification provides investors with broad market exposure, giving it a certain advantage over specialized REITs.

However, compared to competitors, especially specialized REITs like Nomura Real Estate Master Fund and Japan Real Estate Investment Corporation, TSE:1343 has a less pronounced moat. These specialized REITs can offer specific advantages and deeper market knowledge through their focus on certain real estate segments or geographic regions, giving them a stronger competitive edge.

Overall, the moat of TSE:1343 is considered moderate compared to its competitors, with specialized REITs often having a stronger strategic advantage.

Fund Size: 300 billion JPY (2024)
Number of Held REITs: 60 (2024)
Average Return of Held REITs: 4.5% (2024)

The NEXT FUNDS Tokyo Stock Exchange REIT Index ETF offers investors broad diversification across the Japanese real estate market by investing in a variety of REITs. With a fund size of 300 billion JPY and an average return of held REITs at 4.5%, the ETF provides an attractive opportunity to benefit from the stable yields and potential growth opportunities of the real estate sector.

Diversifying across 60 different REITs significantly reduces the risk, as it is less likely for the performance of a single REIT to negatively impact the entire fund. Additionally, the ETF benefits from the overall stability of the Japanese real estate market, characterized by strong demand for high-quality properties and a relatively low vacancy rate.

In summary, the NEXT FUNDS Tokyo Stock Exchange REIT Index ETF could be a good investment for investors seeking stable yields and diversification in the real estate sector. However, it is important to consider individual investment goals and risk tolerance before making an investment decision.

Dividend Yield: 3.5% (estimated for 2025)

The NEXT FUNDS Tokyo Stock Exchange REIT Index ETF (TSE:1343) is known for regularly distributing dividends to its investors. The dividend yield typically hovers around 3.5%, which is considered attractive for a REIT ETF in the Japanese market.

The reliability of the distribution is relatively high, as the ETF invests in a variety of real estate funds that generate stable rental income. This ensures a continuous cash flow base that is used for regular dividend payments. Historically, the ETF has also been able to maintain its dividend payments even in economically challenging times.