RetireJapan

Hello All,

Very basic question but I was wondering how the USD JPY exchange rate movements affect holdings of VOO vs 三菱ＵＦＪ－ｅＭＡＸＩＳ　Ｓｌｉｍ　米国株式（Ｓ＆Ｐ５００)

In the past I used to convert USD to JPY and invest in VOO and in the last 2-3 years my total return for those VOO holdings have had the below components
1) Dividends paid out in tokutei kouza account in USD
2) Stock growth in VOO reflected in USD denomination
3) Growth in Yen terms shown in Rakuten shoken summary screen due to USD:Yen changing from 130 to 150 ( So in favorable direction)

I just started doing the monthly contributions into 三菱ＵＦＪ－ｅＭＡＸＩＳ　Ｓｌｉｍ　米国株式（Ｓ＆Ｐ５００) in 2024 NISA and wondering if the above three components described for VOO will remain same or is there some major difference to consider ( Because I am entering monthly Emaxis Slim in Yen currency). I do understand that this effect will be negative as well if Yen strengthens to 120 or 110 for example over coming 1-2 years.

Just wondering how the asset holdings of Vanguard VOO and 三菱ＵＦＪ－ｅＭＡＸＩＳ　Ｓｌｉｍ　米国株式（Ｓ＆Ｐ５００) are structured in terms of US dollar assets and location of the fund etc. Basically my hypothesis is that it is more beneficial to do NISA 2024 investments using 三菱ＵＦＪ－ｅＭＡＸＩＳ　Ｓｌｉｍ　米国株式（Ｓ＆Ｐ５００) due to reinvestment etc however wondering if there is any benefit to doing investments through the Vanguard VOO route for NISA 2024 or Tokutei kouza once yearly NISA limit is reached. Sorry for long winded question but perhaps the last paragraph is the crux of my question VOO vs Emaxis Slim SnP 500.

Dividends on VOO in a NISA are subject to 10% US withholding tax, which cannot be reclaimed.
eMaxis Slim reinvests the dividends internally, so does not have this problem, as far as I understand (but I'm not sure).

https://retirewiki.jp/wiki/NISA#Caveats

saslearner wrote: ↑Sat Feb 24, 2024 3:34 am Hello All,

Very basic question but I was wondering how the USD JPY exchange rate movements affect holdings of VOO vs 三菱ＵＦＪ－ｅＭＡＸＩＳ　Ｓｌｉｍ　米国株式（Ｓ＆Ｐ５００)

In the past I used to convert USD to JPY and invest in VOO and in the last 2-3 years my total return for those VOO holdings have had the below components
1) Dividends paid out in tokutei kouza account in USD
2) Stock growth in VOO reflected in USD denomination
3) Growth in Yen terms shown in Rakuten shoken summary screen due to USD:Yen changing from 130 to 150 ( So in favorable direction)

I just started doing the monthly contributions into 三菱ＵＦＪ－ｅＭＡＸＩＳ　Ｓｌｉｍ　米国株式（Ｓ＆Ｐ５００) in 2024 NISA and wondering if the above three components described for VOO will remain same or is there some major difference to consider ( Because I am entering monthly Emaxis Slim in Yen currency). I do understand that this effect will be negative as well if Yen strengthens to 120 or 110 for example over coming 1-2 years.

Just wondering how the asset holdings of Vanguard VOO and 三菱ＵＦＪ－ｅＭＡＸＩＳ　Ｓｌｉｍ　米国株式（Ｓ＆Ｐ５００) are structured in terms of US dollar assets and location of the fund etc. Basically my hypothesis is that it is more beneficial to do NISA 2024 investments using 三菱ＵＦＪ－ｅＭＡＸＩＳ　Ｓｌｉｍ　米国株式（Ｓ＆Ｐ５００) due to reinvestment etc however wondering if there is any benefit to doing investments through the Vanguard VOO route for NISA 2024 or Tokutei kouza once yearly NISA limit is reached. Sorry for long winded question but perhaps the last paragraph is the crux of my question VOO vs Emaxis Slim SnP 500.

The effects will basically be the same as both are investing in the same thing...

VOO is a low cost S&P500 Index ETF and eMAXISSlim S&P500 is the same in a low cost Index Fund format.

For VOO you have to account for all as you listed above, including switching the Yen to Dollars to buy the VOO and back again when you sell, and the tax on distributed dividends (withheld by the broker in the case of a Tokutei Account), and what to do with them.
And when you sell, you have to calculate the taxes based on the average buy price in Yen, so multiply all purchase prices by the Yen Exchange Rate on the date of each purchase and averaging that across al units purchased, and the sell price of the units sold converted into Yen...

For this eMAXISSlim Fund, you only deal with the Yen prices.
They will do all currency exchange internally.
They do not distribute the dividends of the underlying stock, so the Dividends will be reinvested internally, so will not penetrate the wrapper, and so the taxes will be handled by MUFJ and you will not see the dividends or the taxes... Instead you will see an increase in the Unit Price.
The taxes on sale will be calculated simply between the Average Yen price paid for all the units purchased and the selling price of the units sold.

The Exchange Rate effect wil be the same; whether you or they do the conversion, the exchange rate on the day is basically the same (they may get a slightly narrower spread, so a slightly better rate than you would on the same day...)

There are Yen denominated Index Funds that include Foreign Exchange Rate Hedge, if you wanted to remove the Yen Exchange Rate Risk from the equation.

Thank you so much for your kind clarifications!!