RetireJapan

Among others, I have seen the 三菱ＵＦＪ国際－ｅＭＡＸＩＳ　Ｓｌｉｍ　全世界株式（オール・カントリー）fund often recommended on this forum several times.

When I go to this page, https://site0.sbisec.co.jp/marble/fund/ ... =20331418A and look at the bottom of the page, I see its ranking for "total return" (over one year) is 402nd place!!
https://ibb.co/jkrHVjB

With such a poor ranking, I just wondered why it is so popular?

In contrast, the top fund over one year is the 大和－ｉＦｒｅｅレバレッジ　ＮＡＳＤＡＱ１００.

Is this whole "ranking" thing not something to worry about when buying into a fund?

Roger Van Zant wrote: ↑Thu Sep 24, 2020 5:42 am Among others, I have seen the 三菱ＵＦＪ国際－ｅＭＡＸＩＳ　Ｓｌｉｍ　全世界株式（オール・カントリー）fund often recommended on this forum several times.

When I go to this page, https://site0.sbisec.co.jp/marble/fund/ ... =20331418A and look at the bottom of the page, I see its ranking for "total return" (over one year) is 402nd place!!
https://ibb.co/jkrHVjB

With such a poor ranking, I just wondered why it is so popular?

In contrast, the top fund over one year is the 大和－ｉＦｒｅｅレバレッジ　ＮＡＳＤＡＱ１００.

Is this whole "ranking" thing not something to worry about when buying into a fund?

In short...no.
The ranking is based on past returns. All the top performing funds make outsized bets on a particular sector or country, or they use leverage to pump up the returns. Chances are the outperformance won't continue into the future, and the overperforming funds will become underperformers.

The eMaxis Slim All Country fund is popular because it's well diversified. You're not placing bets on any particular industry or country so it will inevitably underperform some other funds at any particular time. Over time though it will give you average returns. In this case average is good, because most active investors get less than average returns in the long term.

I see. Thanks!

Roger Van Zant wrote: ↑Thu Sep 24, 2020 6:51 am I see. Thanks!

QQQ tracks the NASDAQ, the NASDAQ is not a diversified index fund it is very tech-heavy.

When the NASDAQ crashes...it REALLY crashes. Have a look at this chart.

And that fund is 'leveraged' NASDAQ, eh? Double or triple ouchie.

RetireJapan wrote: ↑Thu Sep 24, 2020 8:09 am And that fund is 'leveraged' NASDAQ, eh? Double or triple ouchie.

Ouch indeed. Those funds specifically say they are for advanced investors and are not designed to be held for anything more than an ultra-short duration. They are only meant to be used as a hedging tool. The market takes a slight dip, and they fall off the cliff.

Kanto wrote: ↑Thu Sep 24, 2020 7:49 am

Roger Van Zant wrote: ↑Thu Sep 24, 2020 6:51 am I see. Thanks!

QQQ tracks the NASDAQ, the NASDAQ is not a diversified index fund it is very tech-heavy.

When the NASDAQ crashes...it REALLY crashes. Have a look at this chart.

What is "QQQ"?

Roger Van Zant wrote: ↑Thu Sep 24, 2020 2:04 pm

Kanto wrote: ↑Thu Sep 24, 2020 7:49 am

Roger Van Zant wrote: ↑Thu Sep 24, 2020 6:51 am I see. Thanks!

QQQ tracks the NASDAQ, the NASDAQ is not a diversified index fund it is very tech-heavy.

When the NASDAQ crashes...it REALLY crashes. Have a look at this chart.

What is "QQQ"?

The ticker for the NASDAQ. The ETF you listed tracks the Nasdaq, but it is leverage and extremely risky.

Kanto wrote: ↑Thu Sep 24, 2020 2:15 pm

Roger Van Zant wrote: ↑Thu Sep 24, 2020 2:04 pm

Kanto wrote: ↑Thu Sep 24, 2020 7:49 am

QQQ tracks the NASDAQ, the NASDAQ is not a diversified index fund it is very tech-heavy.

When the NASDAQ crashes...it REALLY crashes. Have a look at this chart.

What is "QQQ"?

The ticker for the NASDAQ. The ETF you listed tracks the Nasdaq, but it is leverage and extremely risky.

QQQ = the NASDAQ? Above you wrote "QQQ tracks the NASDAQ...". So that's like saying "NASDAQ tracks the NASDAQ...". Sorry, I don't follow. I'll take your word on the riskiness; I am no expert on these matters. Thanks for the heads-up.

Roger Van Zant wrote: ↑Thu Sep 24, 2020 2:23 pm

Kanto wrote: ↑Thu Sep 24, 2020 2:15 pm

Roger Van Zant wrote: ↑Thu Sep 24, 2020 2:04 pm

What is "QQQ"?

The ticker for the NASDAQ. The ETF you listed tracks the Nasdaq, but it is leverage and extremely risky.

QQQ = the NASDAQ? Above you wrote "QQQ tracks the NASDAQ...". So that's like saying "NASDAQ tracks the NASDAQ...". Sorry, I don't follow. I'll take your word on the riskiness; I am no expert on these matters. Thanks for the heads-up.

Sorry, I was not clear.

The Nasdaq (QQQ) track 100 funds, it is very tech heavy
The 大和－ｉＦｒｅｅレバレッジ　ＮＡＳＤＡＱ１００ tracks QQQ, BUT it is leverage, which means it will will preform double or tripple what QQQ does in a single day.

Either UP or Down....

It is leverage with OPTIONS contracts and is extremely risky. It is designed to be held for a day or so at most. It rebalances every single day.

Do not touch it...

https://www.investopedia.com/investing/ ... ch-better/