Emerging Market Index - .6% fee - Too expensive?

[Kanto]

The general rule of thumb on this board seems to be to keep your funds under .5%, so this one is just on the margin.

インデックスファンド海外新興国（エマージング）株式
-> https://www.rakuten-sec.co.jp/web/fund/ ... 90C0005H60 ->Fee 0.605％


My current allocation with iDeco -> 68,000 Yen a month.

80% 楽天・全世界株式インデックス・ファンド（楽天・バンガード・ファンド（全世界株式）） (0.2120 %)
10% インデックスファンド海外新興国（エマージング）株式 (0.6050 %)
10% たわらノーロード 先進国債券＜為替ヘッジあり＞ (0.2200 %)

With Raktuten it is my only option for emerging market stock

Option 2.

I could remove the developed fund from my IDeco, and increase my exposure in Nisa.

Current Nisa -つみたて - 33,333 Yen a Month

60% 投資信託 eMAXIS Slim 先進国株式インデックス
12% 投資信託 eMAXIS Slim 国内株式(TOPIX)
8% 投資信託 eMAXIS Slim 新興国株式インデックス
20% 投資信託 eMAXIS Slim バランス(8資産均等型) 20%


What is the better option?

[fools_gold]

The fund is 10% of your iDeCo which means it has an additional 0.04% drag on your investments there (0.6% vs. 0.2% for the eMaxisSlim version x 10%).

My feeling is that this would probably be outweighed by the advantage of being able to rebalance within your iDeCo.

I'm with Rakuten too and have the same problem. I'm thinking of moving over to SBI's Select iDeCo plan because of its cheaper funds and lower overall fees.

[RetireJapan]

楽天・全世界株式インデックス・ファンド（楽天・バンガード・ファンド（全世界株式）） (0.2120 %)

Is this not just VT in a wrapper though? VT contains just over 10% emerging markets, so unless you want to overweight them it might be enough.

[adamu]

I'm with Rakuten too and have the same problem. I'm thinking of moving over to SBI's Select iDeCo plan because of its cheaper funds and lower overall fees.

I just posted in another thread, but if you're an eMaxis Slim All Country fan like me, it looks like Monex is the best bet (SBI's iDeCo equivalent to Rakuten's Global fund is their own wrapper of US-based Schwab ETFs. Just as icky).

[Kanto]

楽天・全世界株式インデックス・ファンド（楽天・バンガード・ファンド（全世界株式）） (0.2120 %)

Is this not just VT in a wrapper though? VT contains just over 10% emerging markets, so unless you want to overweight them it might be enough.

You may be right... Perhaps overweighting EM is not the best idea for iDeco.

I will keep things simple. I do not want to babysit too much.

85% 楽天・全世界株式インデックス・ファンド（楽天・バンガード・ファンド（全世界株式）） (0.2120 %)
15% たわらノーロード 先進国債券＜為替ヘッジあり＞ (0.2200 %)

[fools_gold]

I just posted in another thread, but if you're an eMaxis Slim All Country fan like me, it looks like Monex is the best bet (SBI's iDeCo equivalent to Rakuten's Global fund is their own wrapper of US-based Schwab ETFs. Just as icky).

Thanks. I'll look into that. I know SBI do the eMaxis Slim funds through their Select iDeCo plan, but Monex should be easier as I already have an account there.

[adamu]

I know SBI do the eMaxis Slim funds through their Select iDeCo plan

They do some of them, but not all. The global one isn't included. I made my own approximation by mixing Developed ex Japan/Emerging/Japan. It is actually slightly cheaper to do that, but more faff and doesn't rebalance automatically.

[fools_gold]

They do some of them, but not all. The global one isn't included. I made my own approximation by mixing Developed ex Japan/Emerging/Japan. It is actually slightly cheaper to do that, but more faff and doesn't rebalance automatically.

I prefer it that way anyway. The all country fund is good, but it is market cap weighted and therefore won't rebalance for you. If, say emerging market stocks drop by a relative 20%, then they'll make up 8% of the fund rather than 10%. I prefer to keep it at a constant 10% because it means that I'm buying more of the cheaper stocks. I do buy the all country fund in my NISA though because you can't rebalance anyway.

[Kanto]

They do some of them, but not all. The global one isn't included. I made my own approximation by mixing Developed ex Japan/Emerging/Japan. It is actually slightly cheaper to do that, but more faff and doesn't rebalance automatically.

I prefer it that way anyway. The all country fund is good, but it is market cap weighted and therefore won't rebalance for you. If, say emerging market stocks drop by a relative 20%, then they'll make up 8% of the fund rather than 10%. I prefer to keep it at a constant 10% because it means that I'm buying more of the cheaper stocks. I do buy the all country fund in my NISA though because you can't rebalance anyway.

After looking at what you and adamu have written, it seems that SBI would have been the better choice for an iDeco account!

I was considering VOO/Topix/Emerging as separate funds in Rakuten for the purpose of self-balancing, but the high fees made me decide to stick with VT.

Perhaps my goal for the next year will be to open up an SBI account and investigate transferring my iDeco. The margins are slim though, and the paperwork is thick and daunting.