RetireJapan

Thanks for replies everyone! Really appreciate.
Sorry I am late to reply myself - hard work, and also I need time to understand all the replies since I am relatively new to all this

I compared some local, TSE-based & JPY-traded S&P500 and Nasdaq100 ETFs, on TradingView.
Surprisingly, most of them (all hedged) have very short history, like 1 year+ only.
All comparisons showed NON-hedged ETFs perform better. But again, only 1year distance.

So basically yes, looks like trying to hegde US indexes by currency hedge has no use, at least now & in Japan.

Tkydon wrote: ↑Mon May 23, 2022 2:39 am You DO NOT have to Buy and Hold forever... You can Switch if it makes sense to do so, especially within Tax Advantaged Instruments such as iDECO, 401k, those despised Offshore Investment Bonds, etc., when you would not be subject to any taxes when switching...

How is it "not be subject to any taxes when switching"?
I thought only way to switch is to sell one asset, and buy another. But that means I'd use my NISA limit for the amount I gain from this selling.
Or they have some "switch" system without actual selling?

mighty58 wrote: ↑Mon May 23, 2022 5:37 am To give a simple answer to the OP's original question, yes, Monex offers many currency-hedged funds. Just go to their fund search page (https://fund.monex.co.jp/search), click the box for "ヘッジあり" under 為替ヘッジ, and then you get 162 choices. You can further refine your search with the other parameters.

Thanks!! Very helpful.
I added S&P500 to that ヘッジあり box and got 2 results, but that's what I needed.
Only, after I open result links, I cannot find their tickers (those 4 digits they use in Japan), to check them on Trading View for example. Any way to find them? Strange they are hidden...

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How is it "not be subject to any taxes when switching"?
I thought only way to switch is to sell one asset, and buy another. But that means I'd use my NISA limit for the amount I gain from this selling.
Or they have some "switch" system without actual selling?

IDeco, and only iDeco, has a system to allow you to switch funds without selling or realizing capital gains.

Thanks!! Very helpful.
I added S&P500 to that ヘッジあり box and got 2 results, but that's what I needed.
Only, after I open result links, I cannot find their tickers (those 4 digits they use in Japan), to check them on Trading View for example. Any way to find them? Strange they are hidden

...

Only stocks and ETFa have a 4 digit code. Not Mutual funds. Mutual funds are often a better deal in Japan as the dividends can be internally reinvested. No taxable event.

HeavyMetal wrote: ↑Sat Jun 04, 2022 6:14 pm Thanks for replies everyone! Really appreciate.
Sorry I am late to reply myself - hard work, and also I need time to understand all the replies since I am relatively new to all this

I compared some local, TSE-based & JPY-traded S&P500 and Nasdaq100 ETFs, on TradingView.
Surprisingly, most of them (all hedged) have very short history, like 1 year+ only.
All comparisons showed NON-hedged ETFs perform better. But again, only 1year distance.

So basically yes, looks like trying to hegde US indexes by currency hedge has no use, at least now & in Japan.

Given that the Yen has weakened from 115 at the beginning of Jan to 130 at the end of May. you have to consider the Increase due to the Yen Weakening vs the Decrease due to the Market Crash... It has actually hedged the loss, which would have been much greater if the Yen had stayed the same, or would have been amplified if the Yen had strengthened.

HeavyMetal wrote: ↑Sat Jun 04, 2022 6:14 pm

Tkydon wrote: ↑Mon May 23, 2022 2:39 am You DO NOT have to Buy and Hold forever... You can Switch if it makes sense to do so, especially within Tax Advantaged Instruments such as iDECO, 401k, those despised Offshore Investment Bonds, etc., when you would not be subject to any taxes when switching...

How is it "not be subject to any taxes when switching"?
I thought only way to switch is to sell one asset, and buy another. But that means I'd use my NISA limit for the amount I gain from this selling.
Or they have some "switch" system without actual selling?

I answered that in the sentence...

Tkydon wrote: ↑Mon May 23, 2022 2:39 am especially within Tax Advantaged Instruments such as iDECO, 401k, those despised Offshore Investment Bonds, etc., when you would not be subject to any taxes when switching...

Notice I did not say NISA.... For a NISA, you can take the first withdrawal Tax Free, but then you can either use next year's NISA allowance max Y1,2M to reinvest the money, again Future Tax Free, or else reinvest in a regular account so that any future gains would be taxable.

HeavyMetal wrote: ↑Sat Jun 04, 2022 6:14 pm

mighty58 wrote: ↑Mon May 23, 2022 5:37 am To give a simple answer to the OP's original question, yes, Monex offers many currency-hedged funds. Just go to their fund search page (https://fund.monex.co.jp/search), click the box for "ヘッジあり" under 為替ヘッジ, and then you get 162 choices. You can further refine your search with the other parameters.

Thanks!! Very helpful.
I added S&P500 to that ヘッジあり box and got 2 results, but that's what I needed.
Only, after I open result links, I cannot find their tickers (those 4 digits they use in Japan), to check them on Trading View for example. Any way to find them? Strange they are hidden...

Mutual Funds have 8 Character Morningstar Codes, and probably a separate Vendor Codes.
e.g. 0331418A is the Morningstar Code for the eMAXIS Slim全世界株式(オール･カントリー)
whereas 2559 is the RIC for the ETF of MAXIS 全世界株式(オール・カントリー)上場投信

You can search for the Morningstar Codes at sites such as

https://www.morningstar.co.jp/
https://finance.yahoo.co.jp/

Haystack wrote: ↑Sat Jun 04, 2022 10:06 pm IDeco, and only iDeco, has a system to allow you to switch funds without selling or realizing capital gains.

Corporate 401k and Offshore Insurance and Pension wrappers also allow tax free switching.

Technically, a switch is the Sale of one fund and the subsequent purchase of a different fund. So long as you do this within the wrapper of the iDECO, 401k, or Offshore Insurance Bond or Pension wrapper, there is no taxable event, until you withdraw funds from the wrapper.

Tkydon wrote: ↑Sun Jun 05, 2022 3:42 am

Haystack wrote: ↑Sat Jun 04, 2022 10:06 pm IDeco, and only iDeco, has a system to allow you to switch funds without selling or realizing capital gains.

Corporate 401k and Offshore Insurance and Pension wrappers also allow tax free switching.

Technically, a switch is the Sale of one fund and the subsequent purchase of a different fund. So long as you do this within the wrapper of the iDECO, 401k, or Offshore Insurance Bond or Pension wrapper, there is no taxable event, until you withdraw funds from the wrapper.

I took it as read that we were talking about Japan here.

Haystack wrote: ↑Sun Jun 05, 2022 5:11 am

Tkydon wrote: ↑Sun Jun 05, 2022 3:42 am

Haystack wrote: ↑Sat Jun 04, 2022 10:06 pm IDeco, and only iDeco, has a system to allow you to switch funds without selling or realizing capital gains.

Corporate 401k and Offshore Insurance and Pension wrappers also allow tax free switching.

Technically, a switch is the Sale of one fund and the subsequent purchase of a different fund. So long as you do this within the wrapper of the iDECO, 401k, or Offshore Insurance Bond or Pension wrapper, there is no taxable event, until you withdraw funds from the wrapper.

I took it as read that we were talking about Japan here.

???

I have a Japan 401k... Defined Contribution Corporate Pension Plan

https://www.linkedin.com/company/sompo- ... ies/about/

And I know lots of people in Japan who have those despised Offshore Insurance and Pension wrappers...

Tkydon wrote: ↑Mon Jun 06, 2022 4:08 am

Haystack wrote: ↑Sun Jun 05, 2022 5:11 am

Tkydon wrote: ↑Sun Jun 05, 2022 3:42 am

Corporate 401k and Offshore Insurance and Pension wrappers also allow tax free switching.

Technically, a switch is the Sale of one fund and the subsequent purchase of a different fund. So long as you do this within the wrapper of the iDECO, 401k, or Offshore Insurance Bond or Pension wrapper, there is no taxable event, until you withdraw funds from the wrapper.

I took it as read that we were talking about Japan here.

???

I have a Japan 401k... Defined Contribution Corporate Pension Plan

https://www.linkedin.com/company/sompo- ... ies/about/

And I know lots of people in Japan who have those despised Offshore Insurance and Pension wrappers...

401K refers to the US internal Revenue Code. You may be referring to a DC, the corporate iDeCo? iDeCo without the `I` as it were.

(Your link is behind a sign-in wall)

Sompo Japan DC Securities is the leading provider of 401(k)-type corporate defined contribution retirement plan services in Japan.

And, yes, I know. The origin of 401k is the loophole in the American Tax Code that first allowed corporations to provide tax advantaged perks to senior executives, and later allowed them to escape their commitment to provide pensions to all their employees...

Tkydon wrote: ↑Mon Jun 06, 2022 8:07 am Sompo Japan DC Securities is the leading provider of 401(k)-type corporate defined contribution retirement plan services in Japan.

And, yes, I know. The origin of 401k is the loophole in the American Tax Code that first allowed corporations to provide tax advantaged perks to senior executives, and later allowed them to escape their commitment to provide pensions to all their employees...

They are literally called Sompo Japan DC

I don't think we are disagreeing here though...

Haystack wrote: ↑Mon Jun 06, 2022 8:27 am
They are literally called Sompo Japan DC

I don't think we are disagreeing here though...

Don is right. Company DC plans used to be marketed as Japan 401k. I was offered one as such at a company 15 years or so ago. As these things have become more popular, I don't think they are phrasing it that way so much any more.
See below links:

https://www.ifa-japan.co.jp/lp/401k/
https://www.resonabank.co.jp/nenkin/ide ... -401k.html