The Bank of Japan will raise its annual exchange-traded fund sales from ¥330 billion to about ¥860 billion at book value beginning Jan. 1, 2027, reducing its estimated sell-down horizon to 43 years.
The faster pace would represent about ¥2.46 trillion in annual sales at market value, based on the market-to-book ratio of ETFs sold since January 2026. The BOJ estimates that amount would equal about 0.1% of market trading value, compared with roughly 0.05% under the previous pace.
The 43-year figure is an estimate, not a scheduled end date. The BOJ calculated it by dividing its ETF holdings at the end of September 2026 by annual sales at book value; applying the same formula to the former pace produced an estimate of 112 years.
The BOJ had previously outlined the planned increase in its ETF sales. It said the amended framework is intended to make disposals proceed smoothly, while allowing it to adjust sales temporarily or pause them within the annual pace when financial-market conditions change.
The bank said its sales program had continued since January 2026 without significant market disruption and noted that stock-market turnover had expanded. Its disposal principles include seeking adequate prices, limiting losses and avoiding destabilizing markets as much as possible.
The BOJ will allocate sales among funds according to their relative shares of its ETF portfolio and spread transactions over time. Its initial disposal pace drew on an earlier program to sell shares bought from financial institutions; that program ended in July 2025.
The central bank ended purchases of ETFs and Japanese real estate investment trusts (J-REITs) in March 2024, saying it viewed its 2% price-stability target as attainable on a sustained basis. The amended framework takes effect Jan. 1, 2027.
