Bank of Japan Accelerates ETF Sales by 161% Starting in 2027

The Bank of Japan announced on October 30 that it will increase annual ETF disposals from ¥330 billion to approximately ¥860 billion ($5.45 billion), measured at book value, beginning in January 2027. The 161% increase accelerates the central bank's efforts to unwind the substantial ETF portfolio accumulated during years of monetary easing. At the revised pace, the estimated disposal period would fall from 112 years to approximately 43 years. The BOJ intends to keep sales relatively small compared with overall equity market trading activity to limit disruption. The decision marks another step toward normalizing Japan's monetary policy and reducing the central bank's direct involvement in domestic equities.