Daiwa Launches Active Japanese ETF Focused on Dividend Sustainability

Daiwa Asset Management has launched the iFreeETF Japan Equity Progressive Dividend Strategy (665A) on the Tokyo Stock Exchange, offering investors exposure to Japanese companies with a history of maintaining or increasing dividends. The actively managed ETF, listed on November 4, 2026, prioritizes dividend sustainability over high current yields, selecting companies with at least 10 years of stable or rising payouts or explicit progressive dividend policies. The strategy can hold up to 60 stocks across different market capitalizations, aiming to diversify exposure and reduce the impact of individual dividend cuts. The fund carries an annual management fee capped at 0.4125%, including tax, and distributes income semiannually. Unlike traditional high-dividend index ETFs, the strategy uses active stock selection, although neither dividend payments nor capital preservation are guaranteed.