Bank of Japan ETF Disposal Plan Decision
The Bank of Japan decided on the basic policy and specific sale plan for disposal of held ETFs (Exchange-Traded Funds) and J-REITs (Real Estate Investment Trusts) at the September 2025 Monetary Policy Meeting. This decision builds on the experience of completing disposal of stocks (July 2025) purchased for financial system stability.
Target Assets and Sale Scale
Annual Sale Pace:
- ETF: Approximately 330 billion yen in book value (approximately 620 billion yen in market value)
- J-REIT: Approximately 5 billion yen in book value (approximately 5.5 billion yen in market value)
- Reference (disposal completed) Stocks: Approximately 150 billion yen in book value (approximately 620 billion yen in market value)
The sale proportion relative to overall market trading value for each asset is set at approximately 0.05%, with consideration for timing diversification and sales proportional to holding ratios for each issue.
Basic Disposal Policy and Market Consideration Measures
Three Basic Principles:
- Disposal at appropriate prices considering market conditions
- Minimizing losses for the Bank of Japan
- Minimizing disruptive impact on markets
Market stability considerations include the ability to temporarily adjust or suspend sale amounts according to market conditions under the sale pace, with anticipated reviews of sale pace at Monetary Policy Meetings based on basic policies and sale experience.
Implementation Schedule and System Design
Disposal is scheduled to begin once necessary preparations are completed, with market sales planned at a scale comparable to the sale of "stocks purchased from financial institutions." This disposal plan is positioned as part of the gradual reduction of the Bank of Japan's equity asset holdings and the normalization process of monetary policy.