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Vanguard LifeStrategy 100% Equity Fund
Posted: Mon Jul 27, 2020 5:24 am
by dpr26
Hello,
I'd like some advice on how I can invest in the Vanguard LifeStrategy 100% Equity Fund from Japan. I have heard about interactive brokers but with some digging and communication with customer support, I found out I was unable to invest in funds from Japan as they don't offer this service. Is there another way which is possible. I am a British Citizen if that makes any difference. I would prefer to do it in English but Japanese is also ok.
Is Rakuten or Firstrade the best way to go?
Any help or advice is deeply appreciated.
Thanks
Re: Vanguard LifeStrategy 100% Equity Fund
Posted: Mon Jul 27, 2020 5:57 am
by adamu
That is a UK-based fund targeted at the UK market. It's theoretically possible to buy it abroad, but I don't think it's a practical possibility (and it's explicitly not available in the US). If you are certain that's what you want, I think the best option is to buy it through a UK broker.
However, LifeStrategy 100% is effectively a semi-actively managed fund that just decides the best way to invest 100% in stocks with a UK bias.
Probably the simplest equivalent in Japan is to buy a global index fund. The US-listed VT ETF, which is Vanguard's Global fund, is available in Japanese brokers, but you have to convert your money to USD to buy it, and it comes with higher trading fees than domestic funds, which are free to buy. It also pays out a dividend, which is not ideal for tax-efficient long-term investing, and gets taxed in both the US and Japan. If you're not keen on investing in USD and messing about with all the implications of that, then the consensus here is that it's not really worth being loyal to Vanguard and instead to go for a domestically produced global index fund. The current favourite amongst this forum's members is the eMaxis Slim All Country fund. There is also a similar Rakuten-Vanguard fund that wraps up VT as a domestic fund, reinvests the dividends, and charges twice the price for the privilege. There's also an SBI Global fund that does something similar with Schwab's US-based ETFs.
Re: Vanguard LifeStrategy 100% Equity Fund
Posted: Mon Jul 27, 2020 8:13 am
by Kanto
adamu wrote: ↑Mon Jul 27, 2020 5:57 am
That is a UK-based fund targeted at the UK market. It's theoretically possible to buy it abroad, but I don't think it's a practical possibility (and it's explicitly not available in the US). If you are certain that's what you want, I think the best option is to buy it through a UK broker.
However, LifeStrategy 100% is effectively a semi-actively managed fund that just decides the best way to invest 100% in stocks with a UK bias.
Probably the simplest equivalent in Japan is to buy a global index fund. The US-listed VT ETF, which is Vanguard's Global fund, is available in Japanese brokers, but you have to convert your money to USD to buy it, and it comes with higher trading fees than domestic funds, which are free to buy. It also pays out a dividend, which is not ideal for tax-efficient long-term investing, and gets taxed in both the US and Japan. If you're not keen on investing in USD and messing about with all the implications of that, then the consensus here is that it's not really worth being loyal to Vanguard and instead to go for a domestically produced global index fund. The current favourite amongst this forum's members is the eMaxis Slim All Country fund. There is also a similar Rakuten-Vanguard fund that wraps up VT as a domestic fund, reinvests the dividends, and charges twice the price for the privilege. There's also an SBI Global fund that does something similar with Schwab's US-based ETFs.
To add to what Adamu said.
Are you in Japan long term?
If so look at the tax advantaged accounts offered to resisents here, the NISA and iDeco. You can construct your own version of the fund using low cost index funds.
Re: Vanguard LifeStrategy 100% Equity Fund
Posted: Tue Nov 03, 2020 3:27 am
by dpr26
Kanto wrote: ↑Mon Jul 27, 2020 8:13 am
Sorry for the delay in response,
Yeah I'm in Japan long term currently 7 years and can see it continuing.
I've been super busy these past few months but I'm going to back into studying all these different funds. Just out of interest out of the eMaxis Slim, NISA and iDeco fund which would you recommend?
Re: Vanguard LifeStrategy 100% Equity Fund
Posted: Tue Nov 03, 2020 5:15 am
by Kanto
dpr26 wrote: ↑Tue Nov 03, 2020 3:27 am
Kanto wrote: ↑Mon Jul 27, 2020 8:13 am
Sorry for the delay in response,
Yeah I'm in Japan long term currently 7 years and can see it continuing.
I've been super busy these past few months but I'm going to back into studying all these different funds. Just out of interest out of the eMaxis Slim, NISA and iDeco fund which would you recommend?
iDeco and Nisa are not funds.
iDeco is similar to a 401k, and Nisa accounts allow you to avoid capital gains and dividend account.
https://www.retirejapan.com/ideco-j401k/
https://www.retirejapan.com/nisa/
Emaxis Slim is a category of funds offered by MUFJ. There are many different types. All Country or Developed-Country are often recommended here.
https://emaxis.jp/index.html - > GO to the fourth tab.