eMaxis Slim performance VS Benchmarks

[Marcus Halberstram]

Hi all, first post. Was a complete noob this time last year. Thanks to Ben and all the contributors for the advice and insight and on this website. You've changed people's lives.

So, I've been comparing the performances of eMaxis slim S&P 500 vs the S&P 500 itself & SPY ETF. From Jan to Jun 2021 (full 6 months) eMaxis is up 23% whereas the index itself and SPY is up 14%. Why is there such a massive difference? Is it to do with dividends reinvested? Same with eMaxis All Country vs MSCI ACWI iShares ETF (I believe this ETF shares the same benchmark), 20% and 11% respectively. What am I not understanding?! Admittedly, I haven't fully read their prospectus'; that will be my winter reading. Thanks in advance.

[RetireJapan]

I think the exchange rate might make a difference. The falling yen has certainly juiced our paper returns this year, as the vast majority of our holdings are ex-Japan.

[TBS]

Yep, those ETFs pay out dividends while the eMaxis Slim funds reinvest them internally. To make a comparison you will have to include the dividends in the calculation and compare everything in either Yen base or USD base as @RetireJapan says. I did something similar for eMaxis Slim vs the benchmark indices in this post.

[beanhead]

On a related question, I noted that the percentage of US stocks is not the same.

All-Country. Almost 58% based on this doc:
https://emaxis.jp/pdf/koumokuromi/25342 ... 210721.pdf

MCSI World. Almost 68% based on this doc.
https://www.msci.com/documents/10199/17 ... fc565ededb

The MUFG doc mentions 3 indexes. The World one, an emerging markets one and a Japan one (Topix). So, they are constructing their own fund, rather than just following MCI world. Is my understanding correct?
(or, is it just timing? MUFG doc is March 21, MCSI doc is September 21...)

[adamu]

MCSI World.

That's a different index that covers only developed countries. You want MSCI ACWI.

[beanhead]

MCSI World.

That's a different index that covers only developed countries. You want MSCI ACWI.

Aha. Mystery solved. Cheers.
59.56%, according to MSCI, which is much closer!

[Marcus Halberstram]

Thanks for the replies!

[Roger Van Zant]

Thanks for the replies!

"Marcus also works at P&P and in fact does the same exact thing I do and he also has a penchant for Valentino suits and Oliver Peoples glasses. Marcus and I even go to the same barber, although I have a slightly better haircut."