eMaxis Slim S&P500 vs eMaxis Slim All-Country

[NewbieH]

Hi all! I'm new. At 28, I joined Tsumitate NISA through Monex. Last April, I started investing 50,000 yen/month at eMaxis Slim S&P500 after getting advice from my Japanese friend. Then a few months after, I learned about this forum and Retire Japan's YouTube channel where I learned about eMaxis Slim All-Country. I wanted to try it so I invested another 50,000/month for all-country. Looking at both's performance, I wonder if I should just pick and focus on one. I am now maxing my monthly Tsumitate fund.

Which would you choose between the two?
Would you rather keep both?

Thank you. Maybe it was asked plenty of times here but if you have some advice, please feel free. I'm eyeing to organize my portfolio and get ready for NISA 2025. Cheers!

-English Teacher

[RetireJapan]

Last April, I started investing 50,000 yen/month at eMaxis Slim S&P500 after getting advice from my Japanese friend. Then a few months after, I learned about this forum and Retire Japan's YouTube channel where I learned about eMaxis Slim All-Country. I wanted to try it so I invested another 50,000/month for all-country. Looking at both's performance, I wonder if I should just pick and focus on one. I am now maxing my monthly Tsumitate fund.

Which would you choose between the two?
Would you rather keep both?

Welcome to the forum! They are both fine options. Either would be fine, and both is also fine.

Basically the US has outperformed recently. All-country gives you more diversification, but also is made up 60% of US stocks, so there is not going to be a huge difference whichever you choose.

I use the all-country fund, but either is fine in my opinion.

[beanhead]

I buy both.
Adamu recently pointed out on another post just how tech-dominated (NVIDIA/Apple/Microsoft-dominated) the S&P500 is now.
So all-country is definitely better for diversity, although at the moment S&P500's performance is superior.

[smalldog]

Do you believe the S&P500 will continue to outperform
Global stock markets in the years/decades ahead? If so, go for option A.

If however you have no idea or opinion whether the US stock market will continue to outperform global markets in the next 10/20/30 years then it’s sensible to have global diversification to cover for this: go for the all country.

Personally I put all my NISA into the AllCountry fund for many years but as of now at least this was the wrong choice - as of 2024 the US has outperformed. Despite this, I keep my global investment strategy.

[Chizakura]

Personally I put all my NISA into the AllCountry fund for many years but as of now at least this was the wrong choice

Let's not phrase it as "was the wrong choice".

That's basically like saying "I went playing the lottery and made the wrong choice by choosing 123456789 instead of 987654321". Well, unless you have insider knowledge, it wasn't the wrong choice *at the time*. It was the wrong choice *in hindsight* but that is useless information.

[NewbieH]

[/quote]

Welcome to the forum! They are both fine options. Either would be fine, and both is also fine.

Basically the US has outperformed recently. All-country gives you more diversification, but also is made up 60% of US stocks, so there is not going to be a huge difference whichever you choose.

I use the all-country fund, but either is fine in my opinion.
[/quote]

Thank you for this insight! Beyond grateful for the support I've been receiving since Day 1. I feel relieved when you said that!

[NewbieH]

I buy both.
Adamu recently pointed out on another post just how tech-dominated (NVIDIA/Apple/Microsoft-dominated) the S&P500 is now.
So all-country is definitely better for diversity, although at the moment S&P500's performance is superior.

Thank you! Glad to know I'm not alone. I agree with what you said. I've been investing the same amount and been observing the returns. At the moment, S&P500 gives higher returns.

[NewbieH]

Do you believe the S&P500 will continue to outperform
Global stock markets in the years/decades ahead? If so, go for option A.

If however you have no idea or opinion whether the US stock market will continue to outperform global markets in the next 10/20/30 years then it’s sensible to have global diversification to cover for this: go for the all country.

Personally I put all my NISA into the AllCountry fund for many years but as of now at least this was the wrong choice - as of 2024 the US has outperformed. Despite this, I keep my global investment strategy.

Thank you for these insights! I'm investing the same amount 50/50 of these two and I can say S&P500 really gave better results. Crossing my fingers in choosing wisely...

[NewbieH]

Personally I put all my NISA into the AllCountry fund for many years but as of now at least this was the wrong choice

Let's not phrase it as "was the wrong choice".

That's basically like saying "I went playing the lottery and made the wrong choice by choosing 123456789 instead of 987654321". Well, unless you have insider knowledge, it wasn't the wrong choice *at the time*. It was the wrong choice *in hindsight* but that is useless information.

Thanks for posting! I'm new to this so it's really exciting to learn stuffs like this.

[captainspoke]

I buy both.
Adamu recently pointed out on another post just how tech-dominated (NVIDIA/Apple/Microsoft-dominated) the S&P500 is now.
So all-country is definitely better for diversity, although at the moment S&P500's performance is superior.

I'd wonder about that 'at the moment'. Looking around, this seems to be the S&P500 vs the world since 1992.

Will it last/continue? Who knows...!