Buying the dip, speculating

[ChapInTokyo]

Looks good.
Is a taxable account much of a paperwork hassle? And how much tax is taken off?

If you buy in the 特定口座 taxable account (ie. not the 一般口座), there is no hassle since the tax is withheld at source by the broker. The tax rate on capital gains is 20% income tax + 0.315% special tax for reconstruction from the 2011 earthquake and tsunami which makes a total of 20.315% on your gains. So taking your example of a 50,000 yen upside, you'd pay approximately 10,000 yen of that whereas if you used your NISA growth account to do the same thing, you'd pocket the whole 50,000 yen.

There's also a 20.3% tax on dividends too (10% US withholding tax + 10.3% Japanese withholding tax). Details on Rakuten site here.

This is helpful. So I can simultaneously use multiple types of tax accounts from the Rakuten UI, all under the same login?
Also, I’m not from the US, so I’d not pay that %10?

Correct, on point 1. You can select whether you want to buy in taxable or tax waived NISA from the same ‘buy’ interface. If you open an iDeCo account though I think that you need to go to the iDeCo section to manage that part (at least that’s how it works for me on Monex).


As for the 10% US withholding tax we all need to pay that when we get dividends from US investments. The chart basically shows how it used to me that the Japanese withholding tax was levied in addition to the US tax so we had to claim foreign tax credit in our tax returns come kakuteishinkoku time. The second part of the chart shows the new improved system for mutual funds and Japanese ETFs which automatically reduces the Japanese withholding tax by the amount of the US withholding tax so that you are no longer double taxed in the US and Japan.

[Jackson]

To clarify, why isn’t 1655 more popular than
ｅＭＡＸＩＳ Ｓｌｉｍ 米国株式（Ｓ＆Ｐ５００? The latter has a lag when you buy or sell, so you don’t actually know the price you’re buying/selling, unlike 1655.

[sutebayashi]

With mutual funds you typically don't care about the price, only how much money you will invest.

If you are going to buy and hold for 40 years, the price doesn't matter.

Even if you are buying the ETF planning to hold it, the price doesn't matter. You want to be sure your order executes though.

If you are speculating then yes the price matters.

[ChapInTokyo]

To clarify, why isn’t 1655 more popular than
ｅＭＡＸＩＳ Ｓｌｉｍ 米国株式（Ｓ＆Ｐ５００? The latter has a lag when you buy or sell, so you don’t actually know the price you’re buying/selling, unlike 1655.

You seem to be looking at the mutual fund eMaxis Slim 米国株式(S&P500) rather than the ETF 2558 Maxis米株SP500.

If you compare the two ETFs the 1655 against 2558 the 1655 is miles more popular. They both trade like stocks.

The 1655 ｉＳ　Ｓ＆Ｐ５００米国株　　　東証ETF
https://www.rakuten-sec.co.jp/smartphon ... =select_sp

Versus 2558 ＭＡＸＩＳ米株ＳＰ５００ 東証ETF
https://www.rakuten-sec.co.jp/smartphon ... =select_sp

[ChapInTokyo]

With mutual funds you typically don't care about the price, only how much money you will invest.

If you are going to buy and hold for 40 years, the price doesn't matter.

Even if you are buying the ETF planning to hold it, the price doesn't matter. You want to be sure your order executes though.

If you are speculating then yes the price matters.

Give the poor guy a break why doncha? The post states clearly that he is speculating. If there’s 50,000 yen on the pavement waiting for someone to pick it up, it’s nonsensical to advise against saying in 40 years time 50,000 yen is going to be worthless…

Of course, whether you get to come out on top depends on whether you are fortunate enough to make your trades at the right time so ymmv.

[Tsumitate Wrestler]

To clarify, why isn’t 1655 more popular than
ｅＭＡＸＩＳ Ｓｌｉｍ 米国株式（Ｓ＆Ｐ５００? The latter has a lag when you buy or sell, so you don’t actually know the price you’re buying/selling, unlike 1655.

Japanese mutual funds allow for dividends to be internally reinvested, this there is not taxable event. No need for a "DRIP". They are extremely convenient.

They also can be bought in "yen" amounts, purchased on a scheduled, purchased with a credit card that grants you points, warm you free points for holding them.

They can also be sold on a schedule to generate a dividend like income in retirement, using many different metrics.

....

But when the market was down 15%, I could not use an MF to buy in, as MF take days to settle. So, I simple used the ETF version.

When the 2026 NISA opens, I'll sell they ETF and rebuy the MF version.

[Jackson]

To clarify, why isn’t 1655 more popular than
ｅＭＡＸＩＳ Ｓｌｉｍ 米国株式（Ｓ＆Ｐ５００? The latter has a lag when you buy or sell, so you don’t actually know the price you’re buying/selling, unlike 1655.

Japanese mutual funds allow for dividends to be internally reinvested, this there is not taxable event. No need for a "DRIP". They are extremely convenient.

They also can be bought in "yen" amounts, purchased on a scheduled, purchased with a credit card that grants you points, warm you free points for holding them.

They can also be sold on a schedule to generate a dividend like income in retirement, using many different metrics.

....

But when the market was down 15%, I could not use an MF to buy in, as MF take days to settle. So, I simple used the ETF version.

When the 2026 NISA opens, I'll sell they ETF and rebuy the MF version.

This makes sense. Thanks so much. If the ETF sells for the Rakuten screen price during Japanese hours, and tracks the NY sp500, doesn’t that give you an unfair advantage because you could calculate what the next business day’s price will be due to the time difference and holidays?

[Jackson]

With mutual funds you typically don't care about the price, only how much money you will invest.

If you are going to buy and hold for 40 years, the price doesn't matter.

Even if you are buying the ETF planning to hold it, the price doesn't matter. You want to be sure your order executes though.

If you are speculating then yes the price matters.

Give the poor guy a break why doncha? The post states clearly that he is speculating. If there’s 50,000 yen on the pavement waiting for someone to pick it up, it’s nonsensical to advise against saying in 40 years time 50,000 yen is going to be worthless…

Of course, whether you get to come out on top depends on whether you are fortunate enough to make your trades at the right time so ymmv.

Thanks so much

[Tsumitate Wrestler]

To clarify, why isn’t 1655 more popular than
ｅＭＡＸＩＳ Ｓｌｉｍ 米国株式（Ｓ＆Ｐ５００? The latter has a lag when you buy or sell, so you don’t actually know the price you’re buying/selling, unlike 1655.

Japanese mutual funds allow for dividends to be internally reinvested, this there is not taxable event. No need for a "DRIP". They are extremely convenient.

They also can be bought in "yen" amounts, purchased on a scheduled, purchased with a credit card that grants you points, warm you free points for holding them.

They can also be sold on a schedule to generate a dividend like income in retirement, using many different metrics.

....

But when the market was down 15%, I could not use an MF to buy in, as MF take days to settle. So, I simple used the ETF version.

When the 2026 NISA opens, I'll sell they ETF and rebuy the MF version.

This makes sense. Thanks so much. If the ETF sells for the Rakuten screen price during Japanese hours, and tracks the NY sp500, doesn’t that give you an unfair advantage because you could calculate what the next business day’s price will be due to the time difference and holidays?

In reality, the index does not only trade during NY hours. It trades near 24/7 across global indexes. Whether it is through options, futures, Early/late trading, or dark pools.

During Japanese hours, the Japanese ETFs are basically tracking futures.

No, there is no arbitrage to be found for a retail investor.

[sutebayashi]

Give the poor guy a break why doncha? The post states clearly that he is speculating.

Yes, and I was explaining the answer to the question about why the mutual fund might be more popular than the ETF.