Looking for advice on my portfolio and investing in a foreign REIT

[meo92]

I am looking to purchase this fund (三井住友DS－三井住友・ＤＣ外国リートインデックスファンド - Sumitomo Mitsui DS-Sumitomo Mitsui DC Foreign Reit Index Fund) to use in my SBI iDeco.

I was wondering if there are any unnecessary tax implications; I know investing in certain US based funds can result in being taxed both by the US and Japanese governments, am I overlooking something here? Also, can anyone give their assessment of this fund? Does it seem fundamentally sound? I am looking for some international real estate exposure in my portfolio. Would this be the best fund to achieve that?

If I go for this fund, my portfolio would be:

8% Sumitomo Mitsui DS-Sumitomo Mitsui DC Foreign Reit Index Fund (maxed iDeco)
58% Mitsubishi UFJ International-eMAXIS Slim Developed Country Stock Index
34% Mitsubishi UFJ International-eMAXIS Slim Developed Country Stock Index (maxed NISA)

Would you recommend any changes to my portfolio?

Thanks

[RetireJapan]

It's going to depend on your goals and personality. I don't see any major problems. Did you see the new eMaxis Slim all-country fund? Also includes Japan and emerging markets, so it's a nice one-stop option.

I'm not sure how REITs are treated for withholding tax purposes.

Anyone else?

[KyushuWoozy]

Did you see the new eMaxis Slim all-country fund? Also includes Japan and emerging markets

Ben, I'm in the middle of my SBI iDeCo application now. I've got to the bit where we choose the funds but hit a wall. I don't read Japanese and wifey doesn't have knowledge or interest (even though we're opening one each).

Can I ask if you know fund(s) with these super-simple criteria:

- low cost (main criteria I suppose)
- index / tracker (not managed)
- not bonds or anything else
- developed and developing
- not Japan (on my 2019 to-do list is dump all Japanese stocks)

Sorry, I know I should plough through all this myself really ...

[RetireJapan]

Ben, I'm in the middle of my SBI iDeCo application now. I've got to the bit where we choose the funds but hit a wall. I don't read Japanese and wifey doesn't have knowledge or interest (even though we're opening one each).

Can I ask if you know fund(s) with these super-simple criteria:

- low cost (main criteria I suppose)
- index / tracker (not managed)
- not bonds or anything else
- developed and developing
- not Japan (on my 2019 to-do list is dump all Japanese stocks)

Sorry, I know I should plough through all this myself really ...

Well, first of all there seem to be two SBI iDeCo types: the original one and the select one. The latter seems better. In there, this fund seems to be what you are looking for: ｅＭＡＸＩＳ Ｓｌｉｍ全世界株式（除く日本）

I find this website is the best place to compare offerings and see which funds each provider has: https://www.dcnenkin.jp/search/commission.php (click on the provider name to see a clickable list of funds you can sort by annual fee).

[KyushuWoozy]

Thanks Ben, really useful. I used that info and other threads on this forum to decide on these three funds for my SBI iDeCo. I've included my research in case it helps others:

>>>>
Fund name: ＳＢＩ・全世界株式インデックス・ファンド（雪だるま（全世界株式））SBI · Global Equity Index Fund (Snowman World Equity)
Fee: 0.10800%
Past 12 months performance: 1.86%
Managed by: SBI

Consists of: US: 52% / Other developed (including Japan 8%): 37% / Emerging (including China 3%): 10%

Note: Suffers triple taxation. This is discussed in another thread on this forum:viewtopic.php?f=6&t=339&p=2640&hilit=triple#p2640. It's also explained here: http://shintaro-money.com/kaigai-etf-relay-2/. I’m still baffled by it but somehow guess it won’t make much of a difference in the long-term especially taking into consideration the low costs of this fund.

Link for details: http://shintaro-money.com/sbi-yukidaruma-wholeworld/

>>>>
Fund name: ｅＭＡＸＩＳ Ｓｌｉｍ全世界株式（除く日本） (World Stock Fund Excluding Japan)
Fee: 0.15336%
Past 12 months performance: 2.95%
Managed by: Mitsubishi

Consists of: 88% for developed countries (57% of which are US) and 12% for emerging countries.

Note: If you want to invest in developed country stocks and emerging market stocks with a single fund, this is the most recommended fund.

Link for details: http://shintaro-money.com/emaxis-slim-acwi-ex-japan/

>>>>
Fund name: ｅＭＡＸＩＳ Ｓｌｉｍ新興国株式インデックス eMAXIS Slim Emerging Markets Stock Index
Fee: 0.20412%
Past 12 months performance: 0.56%
Managed by: Mitsubishi

Consists of: The first place is the Cayman Islands, which is virtually a Chinese company, with China accounting for about 28% of the total. The second place is 15% of Korea and the third place is 12% of Taiwan. Other countries India, South Africa, Hong Kong and Brazil

Link for details: http://shintaro-money.com/emaxis-slim-msci-em/

[gaijinkun]

For foreign REIT in SBI this seems cheapest:
りそなＡＭ－Ｓｍａｒｔ－ｉ　先進国リートインデックス　 0.22%