Gambling with 2023 NISA allowance?

[mikele3]

If you already have dollars and plan to use those dollars then yes that makes it sound more attractive.
I have not bought US ETFs with NISA before but I suppose they must mark to market the ETF purchase cost from USD to JPY to make sure it’s within your NISA limit.

Well I will change back to JPY before buying anything, mark the gain or losses on the JPY/USD trade ... not sure if I can buy using USD in Rakuten Finance, either way I prefer to keep things simple.

Any idea on what would be the best instrument to buy the NASDAQ index in Rakuten finance?

Then again, buying the NASDAQ say would concentrate your 2023 NISA in tech, whereas would you really be unhappy with whatever world stocks return over the five years? Maybe your itch might be satisfied by a smaller gamble than the whole 1.2 million yen worth.

I think I'll follow the advice and possibly go with only a part of the whole allowance ...

[TokyoBoglehead]

Any idea on what would be the best instrument to buy the NASDAQ index in Rakuten finance?

https://shintaro-money.com/nasdaq100-funds/

....the funds and ETFs recommended by this site (with the subjectivity of the manager) are

If performance matters,

NEXT FUNDS NASDAQ-100 Linked Exchange Traded Fund [1545 ]

iFreeNEXT NASDAQ100 Index

As an ETF/fund that has little track record yet, but is expected in the future

MAXIS NASDAQ 100 ETF [2631], iFreeETF NASDAQ100 (no currency hedge) [2840]

eMAXIS NASDAQ100 Index

Since the cost difference is not so big, you should choose according to your preference.

Are you sure you want to make an outsized bet on Us Tech?

[sutebayashi]

Well I will change back to JPY before buying anything, mark the gain or losses on the JPY/USD trade ... not sure if I can buy using USD in Rakuten Finance, either way I prefer to keep things simple.

I was under the impression you have dollars already, so was thinking you could buy a US ETF like QQQ with those dollars, if you can get them into a US stock account.

If you change your dollars back to yen, you could be liable to pay tax on any profit on the currency conversion (although I wonder in practice how much those types of profits are actively monitored for tax compliance).

[mikele3]

https://shintaro-money.com/nasdaq100-funds/[/url]

....the funds and ETFs recommended by this site (with the subjectivity of the manager) are

If performance matters,

NEXT FUNDS NASDAQ-100 Linked Exchange Traded Fund [1545 ]

iFreeNEXT NASDAQ100 Index

As an ETF/fund that has little track record yet, but is expected in the future

MAXIS NASDAQ 100 ETF [2631], iFreeETF NASDAQ100 (no currency hedge) [2840]

eMAXIS NASDAQ100 Index

Since the cost difference is not so big, you should choose according to your preference.

Are you sure you want to make an outsized bet on Us Tech?

thank you for the link.. I'll try to get my head around the content of that page.

hmm... as a gamble.. it is the only sector I follow a little out of personal interest, I am speculating that it will be the sector that will profit the most by the technology advancement we are seeing in AI; if anything by lowering their costs being able to downsize their workforce and probably their real estate footprint.

From what I could gather, commodities would be the first sector to start a new business cycle after a recession, but I wouldn't know where to start investing in there.

I was under the impression you have dollars already, so was thinking you could buy a US ETF like QQQ with those dollars, if you can get them into a US stock account.

I have USD that I bought and keep in Rakuten Finance

If you change your dollars back to yen, you could be liable to pay tax on any profit on the currency conversion (although I wonder in practice how much those types of profits are actively monitored for tax compliance).

Yes, I will report gains or losses as miscellaneous income in next year income tax return filing...
I think it'll be easier for me to keep an eye on the investment if I use JPY and it should keep things simpler for tax reporting in future.

[captainspoke]

Morningstar ratings, for VTI and QQQ.

[TokyoBoglehead]

Morningstar ratings, for VTI and QQQ.

These metrics are of little use when you are looking forward, which we all should be. Not back...

A study performed by Vanguard found that Morningstar's ratings were not a good method to predict performance when measured against a benchmark. Morningstar itself acknowledges its rating system as a quantitative measure of a fund's past performance that is not intended to accurately predict future performance.

Research Paper -> https://www.stat.berkeley.edu/~aldous/1 ... funds.pdf

Short summary -> https://www.investopedia.com/articles/i ... rformance.