Japan NISA investment framework features 363 eligible products

The Financial Services Agency updated the list of eligible products for the NISA Tsumitate Investment Framework on August 18, 2026. The updated list includes 363 products: 286 designated index investment trusts, 68 active management funds, and 9 ETFs. While the number of options may seem overwhelming, approximately 80% are index funds tracking familiar benchmarks such as the Nikkei 225, TOPIX, S&P 500, or All-Country indices.

Experts suggest that investors should focus on two primary criteria when selecting funds: the underlying index composition and the cost (trust fees). For designated index funds, average trust fees remain low, ranging between 0.27% and 0.34% (excluding tax).

In anticipation of the ‘Kodomo NISA’ system set to begin in 2027, market analysis shows that certain specialized funds have recently outperformed broad market benchmarks like the ‘All-Country’ index. For instance, some Japanese equity-focused funds tracking the Nikkei 225 have recorded returns significantly higher than global benchmarks over the past year, driven by growth in large-cap stocks. However, analysts caution that short-term performance should be balanced against medium-to-long-term stability when planning for long-term asset formation.