Stocks, mutual funds, ETFs, bonds, REITs, robo-advisors, and crypto — what each is, and a hierarchy for choosing.
The main products are individual stocks, mutual funds (investment trusts), ETFs, bonds, REITs, robo-advisors, and crypto; for most beginners a single low-cost diversified fund is the core, with everything else a deliberate addition.
Individual stocks are direct ownership of one company — the highest company-specific risk. Mutual funds (investment trusts, 投資信託) pool many investors’ money into a diversified portfolio run to a stated objective, and at online brokers can often be bought from ¥100 with automatic monthly purchases. ETFs are funds that trade on an exchange at intraday prices, offering limit orders and portability but requiring you to handle bid-ask spreads and, for foreign ETFs, currency conversion.
Bonds (including retail JGBs) provide interest and relative stability; REITs (不動産投資信託) give exposure to property but behave with equity-like volatility and rate sensitivity. Robo-advisors automate allocation and rebalancing for an advisory fee. Cryptoassets sit entirely outside NISA and carry extreme volatility and custody/tax complexity.
Evaluate any fund or ETF in order, not by its recent chart. (1) Is the asset class appropriate? (2) Is the geographic and currency exposure appropriate? (3) Is the benchmark transparent? (4) Is the vehicle eligible for the intended account (e.g. NISA)? (5) Is it sufficiently diversified and operationally viable? (6) What are the expense ratio, transaction costs, tracking difference, tax leakage, spreads, and conversion costs? (7) What is the distribution policy? (8) Can you buy it automatically at your broker? (9) Does your other-country tax system create a problem?
Only at step (10) do you review historical performance — and then only against the benchmark over matching periods. Past return alone is not a valid recommendation criterion: a fund can shine because its market, factor, or currency happened to do well, which says little about future relative returns.
From here, deeper pages cover each category: how to compare mutual funds, index funds vs ETFs, Japanese vs global investing, Japanese and US stocks, high-dividend investing, and REITs. Accounts and tax pages explain the wrappers those products live in.
The consistent theme is that the wrapper (NISA, iDeCo, taxable) and the asset allocation usually matter more than picking a single "best" product. Choose the account and the stock/bond mix first, then implement with low-cost, transparent, eligible funds.
Brokerage (NISA/iDeCo) · Rakuten Securities
A leading low-cost brokerage for NISA and index-fund investing, integrated with Rakuten points and Rakuten Bank.
Fees: Many domestic funds and trades are low- or no-commission — verify current fee schedule.
Brokerage (NISA/iDeCo) · SBI Securities
Japan’s largest online brokerage by accounts, with a very broad low-cost fund lineup and full NISA/iDeCo support.
Fees: Many trades and funds are low- or no-commission — verify current fee schedule.
Brokerage (NISA/iDeCo) · Monex
An established online brokerage often chosen for US-stock access and research tools, with NISA and iDeCo support.
Fees: Commissions vary by product; some funds/trades are low-cost — verify current schedule.
This is education, not a recommendation. Most beginners research low-cost, broadly diversified index funds — for example all-country (全世界株式) or S&P 500 trackers — rather than picking individual stocks, because low fees and diversification are within your control while returns are not. Understand that values fall as well as rise, match the risk to your time horizon, and never invest money you may need soon.