1. Can I expect same dividend return on domestic Maxis S&P 500 ETF (2558) as SPDR S&P 500 (SPY)?
2. In 2020, the dividend return on Maxis S&P 500 ETF (2558) was 90 yens before taxes, does it mean 0.9% dividend return on Maxis S&P 500 ETF (2558)? If so then why the dividend yield on SPDR S&P 500 (SPY) was 1.78% in 2020 and only 0.9% in Maxis S&P 500 ETF (2558)? Is it because of the exchange rate or because SPDR S&P 500 (SPY) invested in more dividend oriented stocks whereas Maxis S&P 500 ETF (2558) invested in growth stocks?
3. Which fund should I choose which gives out dividends as close as to SPDR S&P 500 (SPY)?
1. Can I expect same dividend return on domestic Maxis S&P 500 ETF (2558) as SPDR S&P 500 (SPY)?
2. In 2020, the dividend return on Maxis S&P 500 ETF (2558) was 90 yens before taxes, does it mean 0.9% dividend return on Maxis S&P 500 ETF (2558)? If so then why the dividend yield on SPDR S&P 500 (SPY) was 1.78% in 2020 and only 0.9% in Maxis S&P 500 ETF (2558)? Is it because of the exchange rate or because SPDR S&P 500 (SPY) invested in more dividend oriented stocks whereas Maxis S&P 500 ETF (2558) invested in growth stocks?
3. Which fund should I choose which gives out dividends as close as to SPDR S&P 500 (SPY)?
Sorry guys for your patience!
Check the date the fund was created. It was created in April 2020.
That is why the dividends do not match. It is very young.
I Expect this year it will match up fine.
If you want, take a look at the other ETF options.
Thanks a lot for clearing this out and sharing a link for comparison with other ETF options. After checking the link using google translate feature and using my limited knowledge in the field, I think MAXIS 2558 is better compared to the other two ETF options. Now how to compare it to eMaxis slim S&P 500 MF with dividends non-invested? Where to find the dividends distributions for eMaxis slim S&P 500 MF or there is no such thing with MF?
Thanks a lot for clearing this out and sharing a link for comparison with other ETF options. After checking the link using google translate feature and using my limited knowledge in the field, I think MAXIS 2558 is better compared to the other two ETF options. Now how to compare it to eMaxis slim S&P 500 MF with dividends non-invested? Where to find the dividends distributions for eMaxis slim S&P 500 MF or there is no such thing with MF?
Most MF funds do not distribute dividends. Why? It is not tax efficient, it's better to automatically reinvest.
Some do allow it, you can choose yes or no at the time of purchase. However, confusingly, the option appears even if the fund does not allow it. Read the fund report to know for certain.
Note: there is some misinformation out there about mutual funds, in America they are often less advantage. This is not a universal truth for other countries though. In Japan, for non-americans, they are often the best option.
Kanto wrote: ↑Fri Apr 30, 2021 8:31 am
Most MF funds do not distribute dividends. Why? It is not tax efficient, it's better to automatically reinvest.
Some do allow it, you can choose yes or no at the time of purchase. However, confusingly, the option appears even if the fund does not allow it. Read the fund report to know for certain.
Note: there is some misinformation out there about mutual funds, in America they are often less advantage. This is not a universal truth for other countries though. In Japan, for non-americans, they are often the best option.
Thanks again.
I am looking for some low cost ETF or investment fund tracking S&P 500 which gives regular dividends. So now I am comparing Maxis S&P 500 (2558) with eMAXIS Slim 米国株式(S&P500).
In rakuten eMAXIS Slim 米国株式(S&P500) is giving me "dividends receiving" option but I am not sure that this investment fund releases dividends. Can anyone confirm whether eMAXIS Slim 米国株式(S&P500) give dividends or it is automatically reinvested?
Kanto wrote: ↑Fri Apr 30, 2021 8:31 am
Most MF funds do not distribute dividends. Why? It is not tax efficient, it's better to automatically reinvest.
Some do allow it, you can choose yes or no at the time of purchase. However, confusingly, the option appears even if the fund does not allow it. Read the fund report to know for certain.
Note: there is some misinformation out there about mutual funds, in America they are often less advantage. This is not a universal truth for other countries though. In Japan, for non-americans, they are often the best option.
Thanks again.
I am looking for some low cost ETF or investment fund tracking S&P 500 which gives regular dividends. So now I am comparing Maxis S&P 500 (2558) with eMAXIS Slim 米国株式(S&P500).
In rakuten eMAXIS Slim 米国株式(S&P500) is giving me "dividends receiving" option but I am not sure that this investment fund releases dividends. Can anyone confirm whether eMAXIS Slim 米国株式(S&P500) give dividends or it is automatically reinvested?
I checked emaxis website, seems like emaxis slim funds do not distribute dividends and they are auto reinvested.
It sounds like your ultimate question here is "if I choose to invest, what should I put it in"... but there's no magic bullet answer for that, because nobody here can predict how the market will behave over the next ten years. And let's be clear, neither can any financial advisor or investment professional, no matter how impressive of an argument you hear them putting forth on Bloomberg or MSNBC. One or two of those analysts will be right, but there's simply no way of knowing who it is until 10 years from now. So it's a bet, and it's a bet that will carry risks. And you won't know whether you "won" until the end of your term.
But that being said, betting the farm on a few stocks vs. betting the farm on the entire market via an index fund are two different things, and the index fund very clearly reduces downside risk. It is also the easiest way to ensure you pick/own all the winners. The indexes are also self-cleansing... meaning if some company takes a nosedive over the next 10 years, it will fall out of the index and you won't own it anymore. Therefore, you're not only guaranteed to own the winners, but as the losers will fall out of index naturally, you will never be left holding the bag on a dog investment. You will always own only the strongest companies.
So if it was me, I'd put it into index funds and forget about it. And no, the upside won't be as good as putting it all on the next Amazon or Google, but as there's no way of knowing who the next Amazon/Google will be, indexing is the way to go.
As for mutual funds vs. ETFs for the same index, others have commented already, but just keep the fees low. It sounds like you might be falling into analysis paralysis over the last 0.1% of potential optimization. It really isn't that big a deal at that point.
mighty58 wrote: ↑Sat May 01, 2021 2:51 pm
It sounds like your ultimate question here is "if I choose to invest, what should I put it in"... but there's no magic bullet answer for that, because nobody here can predict how the market will behave over the next ten years. And let's be clear, neither can any financial advisor or investment professional, no matter how impressive of an argument you hear them putting forth on Bloomberg or MSNBC. One or two of those analysts will be right, but there's simply no way of knowing who it is until 10 years from now. So it's a bet, and it's a bet that will carry risks. And you won't know whether you "won" until the end of your term.
But that being said, betting the farm on a few stocks vs. betting the farm on the entire market via an index fund are two different things, and the index fund very clearly reduces downside risk. It is also the easiest way to ensure you pick/own all the winners. The indexes are also self-cleansing... meaning if some company takes a nosedive over the next 10 years, it will fall out of the index and you won't own it anymore. Therefore, you're not only guaranteed to own the winners, but as the losers will fall out of index naturally, you will never be left holding the bag on a dog investment. You will always own only the strongest companies.
So if it was me, I'd put it into index funds and forget about it. And no, the upside won't be as good as putting it all on the next Amazon or Google, but as there's no way of knowing who the next Amazon/Google will be, indexing is the way to go.
As for mutual funds vs. ETFs for the same index, others have commented already, but just keep the fees low. It sounds like you might be falling into analysis paralysis over the last 0.1% of potential optimization. It really isn't that big a deal at that point.
Thank you for your reply.
1. The first question I am facing is whether I should expect the markets to return more than 2.8% return in a long run or not? Nobody knows this but looking on the historical returns one can assume that there are more chances of achieving it so I guess I'm willing to take my chances. Only I have to take care that I do not overleverage myself and I am not forced to liquidate my holdings at wrong timing.
2. The second question I am facing is where to invest? As of now I am inclining to invest in low costs indexes ETF which should pay out some dividends on a regular basis and can help me to cover some of my interest costs. However I am searching for other investment vehicles like a pool of dividends paying stocks or REITs which should pay out regular dividends and their market value do not go down in a long run, I don't know whether they exist or not.
3. The last and least important question I am facing is whether I can deduct the interest costs from dividents/capital gains income for tax purposes?
For what it is worth, I think you are playing with fire.
First rule of conservative investing for the long-term is to try not to lose money. Borrowing money to invest seems to be quite far from a sensible strategy...
Aiming to retire at 60 and live for a while longer. 95% index funds (eMaxis Slim etc), 5% Japanese dividend stocks.
RMA wrote: ↑Sun May 02, 2021 12:44 am
1. The first question I am facing is whether I should expect the markets to return more than 2.8% return in a long run or not? Nobody knows this but looking on the historical returns one can assume that there are more chances of achieving it so I guess I'm willing to take my chances. Only I have to take care that I do not overleverage myself and I am not forced to liquidate my holdings at wrong timing.
You might want to look at the CAPE ratio as well as historical returns. Typically, a high CAPE ratio is associated with low returns over the next 10 years. Currently it is extremely high (about 37 or so). The only time it has been higher was just before the the late 90's dot.com bubble burst in 2000. 11 years later the S&P500 was below its 2000 levels. So, even investing over 10 years there is a chance that you will have poor returns. Bear in mind that if you're borrowing at 2.8% you need to be looking for returns of quite a bit more than that to make all this worth your while. Personally, I wouldn't bother.
