Rakuten Vanguard ETF Funds

[asv]

Well, I made my first invest: used NISA to buy almost 30万円 of バンガード・トータル・ワールド・ストックETF VA WORLD STOCK (VT) NYSE Arca using Rakuten Securities. I plan to put another 30万 in the NISA before the year ends, any recommendation? (I am a super beginner)

[adamu]

Well, I made my first invest

Congrats!

バンガード・トータル・ワールド・ストックETF VA WORLD STOCK (VT) NYSE Arca

This thread is about Rakuten ETF Funds, but you bought a plain old ETF directly (not a fund that wraps them). Nothing wrong with that though, it's what I do too. It risks taking this thread off-topic though (this reply is not helping either...).

any recommendation?

More VT? It completely depends on your strategy and asset allocation. If the price of VT drops 50% in January, will you panic / be upset?

[RetireJapan]

Yep. ASV, could you start a new thread about your situation? You might get more suggestions that way too

This thread is about Rakuten ETF Funds, but you bought a plain old ETF directly (not a fund that wraps them). Nothing wrong with that though, it's what I do too. It risks taking this thread off-topic though (this reply is not helping either...).

[asv]

Ops, sorry. I bought it using Rakuten Securities and thought this thread was about that.

[Rezz]

I'm late to the party on this one. Since investing in March, I've been mainly ignoring the newsletters from Rakuten (oops).

Is anyone else invested in the MAXIS 1550 ETF considering this Vanguard fund for the new NISA allowance of American stocks? I was planning to just top up my 1550 balance in line with my allocations, but this seems a viable alternative. Fees are 0.15% (1550) vs 0.1696% (Vanguard).

[Tony]

As I switched to tsumitate nisa for next year, I will probably be buying the rakuten vangaurd because I can't buy 1550 in a tsumitate nisa (funds only, no etfs/stocks). If it weren't for that switch I probably wouldn't change.

[Sam]

I hadn't noticed the 楽天・全世界株式インデックス・ファンド before but it seems like a reasonable alternative to purchasing VT directly from Japan. The additional management fee isn't ideal but for the extra 0.1% I avoid the foreign currency spread that 楽天証券 charge for each USD purchase/sale, avoid the trading fee (currently refunded for NISA purchases), and I can schedule monthly purchases from my bank account directly into the fund without bank transfer fees.

Reinvestment of dividends is also possible since it is a Japanese index fund. I have assumed that, for purchases made within a NISA, automatically reinvested dividends will also stay within the NISA - does anyone know if this is the case?

[N00bster]

Reinvestment of dividends is also possible since it is a Japanese index fund. I have assumed that, for purchases made within a NISA, automatically reinvested dividends will also stay within the NISA - does anyone know if this is the case?

My understanding is that they are.

I am currently wondering which of this fund or Mitsubishi's 1550 would make the most sense for world exposure in NISA. Since I currently have VT on a different, USD denominated account I opted for the latter, but I wonder if people have more arguments in favor in Rakuten's Vanguard fund.

[RetireJapan]

I am currently wondering which of this fund or Mitsubishi's 1550 would make the most sense for world exposure in NISA. Since I currently have VT on a different, USD denominated account I opted for the latter, but I wonder if people have more arguments in favor in Rakuten's Vanguard fund.

For a worldwide fund, buying Vanguard funds exposes the whole fund to US dividend withholding tax, doesn't it? Whereas in 1550, only the US stocks (about 50% of the fund) would be subject to US withholding tax. Does this make much of a difference?

[fools_gold]

I am currently wondering which of this fund or Mitsubishi's 1550 would make the most sense for world exposure in NISA. Since I currently have VT on a different, USD denominated account I opted for the latter, but I wonder if people have more arguments in favor in Rakuten's Vanguard fund.

VT is more diversified and includes emerging markets and Japan, 1550 doesn't. Also, although the expense ratio of 1550 is quoted as 0.15%, it's actually 0.27% https://www.am.mufg.jp/pdf/geppou/18155 ... 201711.pdf

Rakuten's All World Stock fund has a total expense of 0.24%. https://www.rakuten-toushin.co.jp/fund/ ... 201711.pdf