Japan Begins Decades-Long ETF Sell-Off in January
The Bank of Japan is set to initiate the gradual unwinding of its massive ETF portfolio, valued at ¥83 trillion ($534 billion), starting as early as January. The central bank's cautious approach calls for annual sales of approximately ¥330 billion, a pace that could extend the process beyond a century. With a book value of ¥37.1 trillion, these stimulus-era holdings will be liquidated in a manner designed to prevent market disruption.
This deliberate strategy underscores Japan's commitment to financial stability as it transitions away from unconventional monetary policies. The measured sell-off reflects lessons learned from past market interventions, prioritizing systemic resilience over rapid divestment.