Five factor investing with JP mutual funds?

[buckbunny]

Hello,
I've been reading https://www.pwlcapital.com/wp-content/u ... h-ETFs.pdf and I was wondering if anybody had worked out allocations of low-cost JP funds (eMaxis etc) to reach the same exposure as the Canada-centric portfolio presented in the paper.

I'm thinking 80% eMaxis Slim All Country, but I'm missing 20% small cap value from one or several accumulating funds.

[buckbunny]

OK, this is what I've got now:

• 60% eMAXIS Slim全世界株式(オール･カントリー)

• 29% EXE-i グローバル中小型株式ファンド

• 11% 楽天・新興国株式インデックス・ファンド

Weighted management cost is 0.189%.

Any opinion?

[buckbunny]

The portfolios in the paper use a 60/30/10 US/Developed ex US/Emerging equity allocation. The thing I made above is underexposed to the US market. To fix it I need to reduce the allocation to the eMaxis and EXE-i funds a bit and add 15% of US all-caps through the Rakuten VTI wrapper (option a).

Thus, the new Buck Bunny 5F Equity Allocation™ would become:

• 50% eMAXIS Slim全世界株式(オール･カントリー)

• 25% EXE-i グローバル中小型株式ファンド

• 15% 楽天・全米株式インデックス・ファンド

• 10% 楽天・新興国株式インデックス・ファンド

The allocations now is proper 60%US / 30% Developed excl US / 10% Emerging, and the proportion of small caps is still at around 25%.

The weighted management fee is 0.1865%.

I could also overexpose to Japan a bit, to offset the risk of long term currency variations that averaging wouldn't fix (option b), splitting these 15% into 10% US all-caps and 5% TOPIX1000 or Nikkei400.

[EmaxisSlim Cultist]

The portfolios in the paper use a 60/30/10 US/Developed ex US/Emerging equity allocation. The thing I made above is underexposed to the US market. To fix it I need to reduce the allocation to the eMaxis and EXE-i funds a bit and add 15% of US all-caps through the Rakuten VTI wrapper (option a).

Thus, the new Buck Bunny 5F Equity Allocation™ would become:

• 50% eMAXIS Slim全世界株式(オール･カントリー)

• 25% EXE-i グローバル中小型株式ファンド

• 15% 楽天・全米株式インデックス・ファンド

• 10% 楽天・新興国株式インデックス・ファンド

The allocations now is proper 60%US / 30% Developed excl US / 10% Emerging, and the proportion of small caps is still at around 25%.

The weighted management fee is 0.1865%.

I could also overexpose to Japan a bit, to offset the risk of long term currency variations that averaging wouldn't fix (option b), splitting these 15% into 10% US all-caps and 5% TOPIX1000 or Nikkei400.

I think you are overcomplicating things.

85% 楽天・全世界株式インデックス・ファンド (8000 stocks vs Emaxis 3000)
15% EXE-i グローバル中小型株式ファンド

............................................................................

Or...if you want more customization.

eMAXIS Slim 先進国株式インデックス as your base.

Then add

A. Topix
B. Small Cap Us/International
C. Emerging market

[fools_gold]

Hello,
I've been reading https://www.pwlcapital.com/wp-content/u ... h-ETFs.pdf and I was wondering if anybody had worked out allocations of low-cost JP funds (eMaxis etc) to reach the same exposure as the Canada-centric portfolio presented in the paper.

I'm thinking 80% eMaxis Slim All Country, but I'm missing 20% small cap value from one or several accumulating funds.

You could replace the small-cap value with REITs. Not the same thing, obviously, but they're strongly correlated.