RetireJapan

Hi Everyone,

First time poster here. I have a question I was wondering if anyone could help with.

It is regarding VT vs Emaxis 全世界株式（オール・カントリー) for NISA.

VT has a management fee of 0.08% and Emaxis has a management fee of 0.1144%, so that looks good for VT, but I think I read something about VT getting double (triple?) taxed as it's based in America (for those of us in Japan), although, I suppose, that maybe reduced a little with the NISA tax breaks.

I guess in short, what are the pros and cons of each of for a non-American based in Japan and why would one be preferable over the other (or would investing in both make sense?)

Looking forward to hearing your thoughts.

*I've edited this post, initially I had written VTI, but what I actually wanted to write was VT.

VTI is an ETF right? So you'll be paying transaction fee to buy it, and you're buying it in USD so you might be paying currency conversation at the same time?

Emaxis is JPY sold (although will fluctuate in value based on the JPN/USD rate), and is a mutual fund so 0 yen cost to buy.

The tax piece i'm not so sure on, but given the above I would argue that the fees are a bigger issue?

SOT wrote: ↑Thu Sep 16, 2021 1:33 pm *I've edited this post, initially I had written VTI, but what I actually wanted to write was VT.

Welcome to the forum! I was about to write a post explaining why VT would be a better comparison than VTI, but it seems I don't need to

Mutual funds in Japan have the advantage of being able to reinvest dividends internally without you paying tax on them. With an ETF, the dividends are paid out.

I used to buy VT, now I find eMaxis Slim all-country is easier (can set up automatic purchases, be bought in yen, no tax until sale). I believe there is not enough difference in terms of taxes/fees/etc. to claim that one is always better than the other.

Thanks to both of you for your replies, both contained stuff I didn't know, so definitely worthwhile!

I currently have some VT (among others), but next time I buy I think I'll go for emaxis.