Daiwa Asset Management confirmed on August 20 that unitholders approved a 100-to-1 consolidation of beneficiary units in two of its leveraged inverse ETFs: the iFreeETF TOPIX Double Inverse (-2x) Index (ticker 1368) and the iFreeETF Nikkei225 Double Inverse Index (ticker 1366). A written resolution cleared the change with support from unitholders holding at least two-thirds of outstanding units, and the record date is October 21, with the consolidation taking legal effect the next day, October 22.
The reason is a decade-long decline in net asset value for both funds. The TOPIX double-inverse fund's net asset value fell from ¥99,956 per 10 units at its January 2015 launch to ¥1,906 per 10 units as of April 30, 2026, with its exchange closing price down to ¥194. The Nikkei 225 double-inverse fund saw a similar slide, from ¥99,966 to ¥951 per 10 units over the same period. Daiwa says such low prices amplify the effect of every one-yen tick and risk weakening how closely the funds track their target indexes.
| Fund | Ticker | NAV at January 2015 launch | NAV as of April 30, 2026 | Consolidation effective |
|---|---|---|---|---|
| iFreeETF TOPIX Double Inverse (-2x) Index | 1368 | ¥99,956 per 10 units | ¥1,906 per 10 units | October 22, 2026 |
| iFreeETF Nikkei225 Double Inverse Index | 1366 | ¥99,966 per 10 units | ¥951 per 10 units | October 22, 2026 |
The mechanics matter for anyone still holding either ticker. Unitholders with fewer than 100 units on the October 21 record date lose their unitholder status entirely: their whole position is converted to cash and paid out according to its fractional share. Holders with 100 or more units keep one unit for every 100 they held, with any leftover below a full 100-unit block similarly cashed out. A holder with 550 units, for example, ends up with 5 units after the split and receives cash for the remaining 50.
Daiwa is also lowering the minimum creation and redemption size from 10,000 units to 100 units and adding a new early-termination trigger: it can now wind down either trust if net assets fall below ¥1bn, a threshold that did not exist before. Dissenting unitholders have a formal window, August 28 to September 16, to ask the ETF's trustee company to buy back the units they held as of June 15, 2026, though Daiwa notes that filing an objection does not require exercising that option.