Ideal iDeCo composition

[Roger Van Zant]

If I were you, I would go with Monex (not Rakuten or SBI), because they are the only security provider that offers the amazing eMaxis Slim 全世界株式オールカントリー fund in their iDeCo lineup. I signed up with SBI, just before Monex announced they would add the eMaxis Slim 全世界株式オールカントリー fund to their iDeCo products, so I am contemplating to make the switch (but not sure if it's worth the switch, as I would miss out approximately 2 months of market returns while being in the process of switching providers ><).

Just going through the paperwork that has arrived for my wife to set up her 'Select Plan' iDeCo with SBI Shoken and it seems the eMaxis Slim 全世界株式(除く日本) is available as an investment option. I was under the impression that wasn't too different to the all country fund you mention above that is Monex-only - am I wrong on that?

ｅＭＡＸＩＳ Ｓｌｉｍ 全世界株式（除く日本）-> https://emaxis.jp/pdf/geppou/253209/253209_202006.pdf
ｅＭＡＸＩＳ Ｓｌｉｍ 全世界株式（オール・カントリー）-> https://emaxis.jp/pdf/geppou/253425/253425_202006.pdf

It seems to be basically the same, minus Japan as it states. You could just add a low cost TOPIX fund at 7% in addition to it.

The major disadvantage is you need to realocate manually every year.

Sorry, what do you mean by "reallocate manually every year". Can you give an example?

[Roger Van Zant]

Just going through the paperwork that has arrived for my wife to set up her 'Select Plan' iDeCo with SBI Shoken and it seems the eMaxis Slim 全世界株式(除く日本) is available as an investment option. I was under the impression that wasn't too different to the all country fund you mention above that is Monex-only - am I wrong on that?

ｅＭＡＸＩＳ Ｓｌｉｍ 全世界株式（除く日本）-> https://emaxis.jp/pdf/geppou/253209/253209_202006.pdf
ｅＭＡＸＩＳ Ｓｌｉｍ 全世界株式（オール・カントリー）-> https://emaxis.jp/pdf/geppou/253425/253425_202006.pdf

It seems to be basically the same, minus Japan as it states. You could just add a low cost TOPIX fund at 7% in addition to it.

The major disadvantage is you need to realocate manually every year.

Yes, you can balance that with a Japan fund. But then if you're going that far, you could also split the "World ex Japan" into "Developed Countries" and "Emerging Markets" for a 3 fund portfolio with slightly lower fees. That's what I do in my SBI iDeCo. In the NISA I just go with the all country fund for simplicity.

How do you "split" the fund into "World ex Japan" and "Developed Countries"? Aren't the funds offered as a single thing which you buy "as is"? I don't follow.

[Kanto]

Just going through the paperwork that has arrived for my wife to set up her 'Select Plan' iDeCo with SBI Shoken and it seems the eMaxis Slim 全世界株式(除く日本) is available as an investment option. I was under the impression that wasn't too different to the all country fund you mention above that is Monex-only - am I wrong on that?

ｅＭＡＸＩＳ Ｓｌｉｍ 全世界株式（除く日本）-> https://emaxis.jp/pdf/geppou/253209/253209_202006.pdf
ｅＭＡＸＩＳ Ｓｌｉｍ 全世界株式（オール・カントリー）-> https://emaxis.jp/pdf/geppou/253425/253425_202006.pdf

It seems to be basically the same, minus Japan as it states. You could just add a low cost TOPIX fund at 7% in addition to it.

The major disadvantage is you need to realocate manually every year.

Sorry, what do you mean by "reallocate manually every year". Can you give an example?

Index funds like the S&P500 and the Nasadaq track select stocks, right? (S&P-> 500 different stocks, Nasdaq 100 stocks). The organizations behind those index funds decided every year whatt stocks to keep in the index. That is how basic domestic funds work.

A world index fund need to do the same task, but it also needs to decicide what percentage of stock should come from which countries.

There are a few ways of doing this. The most common is market-cap-weighting. https://en.wikipedia.org/wiki/Capitaliz ... eighted%20(or%20cap,changes%20a%20stock%20index's%20value.

Essentially, world makets change yearly. Emerging markets may rise, Europe may go into a rescession, etc. Thusly the allocation towards each individual country changes.

Global ETFs do this automatically.

If you own a Japanese ETF, an American ETF an EM etf and a Developed country ETF you have to caculate what to buy or sell to rebalance your position to meet the new marketweight.

[Akatani]

Hi guys,

I just recently changed to the SBI select Ideco and this prompted me to rethink my allocation.
I've gone with:
ｅＭＡＸＩＳ　Ｓｌｉｍ　先進国株式インデックス（eMAXIS Slim 先進国株式ｲﾝﾃﾞｯｸｽ） 63%


ｅＭＡＸＩＳ　Ｓｌｉｍ　全世界株式（除く日本）（eMAXIS Slim 全世界株式(除く日本)） 32%

ｅＭＡＸＩＳ　Ｓｌｉｍ　国内株式（ＴＯＰＩＸ）（eMAXIS Slim 国内株式(TOPIX)） 5%

Am I being silly with splitting my foreign stocks into like that? My thinking is this: Yes, the all country looks great, but compared to the developed countries fund it underperforms by 1 percent or 2. I was going to go with just developed countries but added all countries at the last minute on a whim to 'test it out'. I used to have TOPIX at 20% but since my salary and pension are in Japan, I knocked it down to 7% and then 5%.

[Kanto]

Hi guys,

I just recently changed to the SBI select Ideco and this prompted me to rethink my allocation.
I've gone with:
ｅＭＡＸＩＳ　Ｓｌｉｍ　先進国株式インデックス（eMAXIS Slim 先進国株式ｲﾝﾃﾞｯｸｽ） 63%


ｅＭＡＸＩＳ　Ｓｌｉｍ　全世界株式（除く日本）（eMAXIS Slim 全世界株式(除く日本)） 32%

ｅＭＡＸＩＳ　Ｓｌｉｍ　国内株式（ＴＯＰＩＸ）（eMAXIS Slim 国内株式(TOPIX)） 5%

Am I being silly with splitting my foreign stocks into like that? My thinking is this: Yes, the all country looks great, but compared to the developed countries fund it underperforms by 1 percent or 2. I was going to go with just developed countries but added all countries at the last minute on a whim to 'test it out'. I used to have TOPIX at 20% but since my salary and pension are in Japan, I knocked it down to 7% and then 5%.

There is a lot of overlap between your three funds.

It would have made more sense to include ｅＭＡＸＩＳ Ｓｌｉｍ 新興国株式インデックス and not 全世界株式(除く日本)）

https://emaxis.jp/fund/252878.html#tab_outline

[adamu]

I just recently changed to the SBI select Ideco and this prompted me to rethink my allocation.
Am I being silly with splitting my foreign stocks into like that?

I also have SBI Select. Since they don't have eMaxis Slim All Country including Japan, this is what I do.