US REIT ETFs on Rakuten or SBI Securities

[ToushiTime]

Hi, I use Rakuten Securities and SBI Securities.

I want to buy Vanguard Real Estate ETF (ticker: VNQ) but cannot find it on either brokerage.

Rakuten Securities has SPDR Down Jones REIT ETF, but that has a very low weighting for communication infrastructure REITs, according to SeekingAlpha.

Does anyone have any recommendations for US REIT ETFs that are available on Rakuten Securities or SBI Securities?

[TokyoBoglehead]

Hi, I use Rakuten Securities and SBI Securities.

I want to buy Vanguard Real Estate ETF (ticker: VNQ) but cannot find it on either brokerage.

Rakuten Securities has SPDR Down Jones REIT ETF, but that has a very low weighting for communication infrastructure REITs, according to SeekingAlpha.

Does anyone have any recommendations for US REIT ETFs that are available on Rakuten Securities or SBI Securities?

In Japan Trusts (Mutual Funds) are often a better options than ETFS. This is particular true with REITs as their distribution in ETFs cause many taxable events. In trusts the dividend is internally reinvested, thus preventing this.

I am not sure about pure US options, but Emaxis Slim Developed Reit is 75% US, and is a great option, https://emaxis-jp.translate.goog/fund/2 ... _tr_pto=sc

s.jpg (14.05 KiB) Viewed 1456 times

eMAXIS Slim 先進国リートインデックス

[ToushiTime]

Thanks for your response.

Is it impossible to set these ETFs to reinvest the distributions?

And does that apply to all ETFs, not just REIT ETFs?

I have just set up a regular monthly purchase of iシェアーズ 米国国債 7-10年 ETF(IEF) as I couldn't find a mutual fund equivalent...

EDIT:
Are you sure ETFs are more tax efficient than mutual funds? I think that is true for Fixed-income ETFs, but I am not sure about equity ETFs.
https://www.etf.com/etf-education-cente ... -efficient

[TokyoBoglehead]

Thanks for your response.

Is it impossible to set these ETFs to reinvest the distributions?

And does that apply to all ETFs, not just REIT ETFs?

I have just set up a regular monthly purchase of iシェアーズ 米国国債 7-10年 ETF(IEF) as I couldn't find a mutual fund equivalent...

EDIT:
Are you sure ETFs are more tax efficient than mutual funds? I think that is true for Fixed-income ETFs, but I am not sure about equity ETFs.
https://www.etf.com/etf-education-cente ... -efficient

Trusts (Mutual Funds) are more tax efficient than ETFS in Japan. This is specific to Japan. Your examples do not relate to Japanese securities.

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There are not many good bond trusts, Emaxis has a developed country one, and Rakuten has a hedged version of BDNW wrapped in a mutual fund.

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Brokers like MONEX allow DRIP but you will still be taxed on the distributions.

[ToushiTime]

Why exactly are Japanese mutual funds more tax efficient than the US ones, assuming the investor is living in Japan?

Doesn’t this quote below apply to Japanese mutual funds (trusts) too and wouldn’t that mean those gains are taxed, indirectly affecting the other investors?

“When a mutual fund investor asks for her money back, the mutual fund must sell securities to raise cash to meet that redemption.”

[adamu]

Why exactly are Japanese mutual funds more tax efficient than the US ones, assuming the investor is living in Japan?

It's in relation to global index funds, but hopefully useful:
https://retirewiki.jp/wiki/Japanese_glo ... th_US_ETFs

[ToushiTime]

Thank you that link. It was very useful.
I have cancelled my US Bond ETF purchase order, and will buy the REIT index fund TokyoBogleHead recommended above.
I am also considering this 米国国債ファンド　為替ヘッジなし（年1回決算型）
https://www.rakuten-sec.co.jp/web/fund/ ... 90C0009B54
What do you think? I want some exposure to US bonds over the long-term.

[ToushiTime]

Why exactly are Japanese mutual funds more tax efficient than the US ones, assuming the investor is living in Japan?

It's in relation to global index funds, but hopefully useful:
https://retirewiki.jp/wiki/Japanese_glo ... th_US_ETFs

Sorry Adamu, I mistook your reply for TokyoBogleHead's. Thanks to both of you.

[TokyoBoglehead]

Why exactly are Japanese mutual funds more tax efficient than the US ones, assuming the investor is living in Japan?

It's in relation to global index funds, but hopefully useful:
https://retirewiki.jp/wiki/Japanese_glo ... th_US_ETFs

Sorry Adamu, I mistook your reply for TokyoBogleHead's. Thanks to both of you.

Operation management fee (trust fee) (tax included) 1.144%
運用管理費用（信託報酬）（税込） 1.144

That is expensive. Very Expensive

[ToushiTime]

Yes that 1.144% fee is high compared to 0.616-0.66% for the eMAXIS 先進国債券インデックス
I noticed the 1.144% only applies when the Treasury yield is 4% or higher. The fee is 0.374% to 0.924% for yields below that.
This seems to be the only mutual fund (trust) option I can find for investing in US treasuries, unhedged.
Are there any reasons to buy this product that would justify the higher fees?
Should I avoid it because of the US debt ceiling issue?