Bank of Japan to more than double annual ETF sales from January

Key facts

• The Bank of Japan held ETFs with a book value of $228.3 billion as of October 20.
• The accelerated sales are expected to shorten the time to unwind the ETF portfolio to 43 years from 112 years.

The Bank of Japan has decided to more than double its annual sales of the exchange-traded funds it accumulated through years of aggressive easing. The central bank will sell the ETFs at a pace equivalent to around 0.1% of the market's trading value. This decision comes as the market value of its ETF holdings has expanded significantly alongside gains in Japanese equities. The accelerated disposals will substantially shorten the estimated time required to unwind the portfolio, with the BOJ now projecting it will take approximately 43 years, compared to its earlier estimate of 112 years. The revised selling plan is set to come into effect in January 2027.