New NISA with SBI

[adamu]

I wonder what exchange rate will be used when I buy a foreign ETF with yen cash? Hopefully not an unfavourable (loaded) one?

Loaded at 0.25 yen per dollar.

You can get it at 0.06 yen per dollar if you convert in SBI Net Bank (not Shinsei) but it'll be a pain.

https://retirewiki.jp/wiki/Currency_conversion

I've never tried setting up a Tsumitate for a US ETF so not sure about that. If you have lots of dividend paying US ETFs, you might want to look into claiming the foreign tax deduction in your tax return (very complicated and another reason why sticking with JP funds is best, also you can't do it for a NISA so have to suck up paying US taxes in a tax free account).

https://retirewiki.jp/wiki/Japanese_glo ... th_US_ETFs

[northSaver]

Loaded at 0.25 yen per dollar.

Interesting, thanks. So about 0.18% markup at current exchange rates. Even so, this plus the ETF fee is much lower than the MF fee in iDeCo.

I wonder what the markup is in an MF such as eMAXIS Slim All Country when buying US stocks with yen? Probably much lower but surely not zero?

If you have lots of dividend paying US ETFs, you might want to look into claiming the foreign tax deduction in your tax return (very complicated and another reason why sticking with JP funds is best, also you can't do it for a NISA so have to suck up paying US taxes in a tax free account).

Yeah, I won't be buying dividend-distributing US ETFs in NISA.

[adamu]

I wonder what the markup is in an MF such as eMAXIS Slim All Country when buying US stocks with yen? Probably much lower but surely not zero?

I think it would make up part of the drift from the base index, after accounting for the management fee.

https://shintaro-money.com/emaxis-slim-allcountry/#i-12

[northSaver]

I think it would make up part of the drift from the base index, after accounting for the management fee.

Yes, I guess so. It is not clear how much is charged for currency conversion. I tried to find it in the "ファンドの費用・税金" section of the prospectus but couldn't. Anyway, no matter. We have to trust that the total fund fee they state is what we actually pay, and includes hidden costs such as currency conversion fees.

Just going back to that 0.25 yen SBI charge, presumably you have to pay that twice - once when you buy the ETF and once again when you sell it? This would double the charge of owning foreign funds and stocks, and makes the whole thing less appealing

Thanks for your help with this adamu.