RetireJapan

As many people here I have been investing into this fund for as long as it has been available.

Rakuten Securities shows the performance of the fund (blue line) compared to the average of its category (分類平均, red line). And so far this fund seems to have been quite a bit underwhelming.

For the 3 last months:


6 last months:


1 year:


Since inception:


For perspective, since inception the fund is up by 33.68%, whereas the category average is +50.59.

For comparison, here is the 1 year performance of ｅＭＡＸＩＳ Ｓｌｉｍ 先進国株式インデックス:


Here we can see that the fund is much close to the average (and even beats it by 10% since inception), which one would expect due to its low fees.

Any idea why our champion fund seems to be performing so "poorly" despite being low fees and very diversified?

N00bster wrote: ↑Thu Feb 04, 2021 11:08 am
Any idea why our champion fund seems to be performing so "poorly" despite being low fees and very diversified?

This is not a comparison to the base index, this is Rakuten`s own formula.

楽天証券ファンドスコアの付与にあたっては、同一分類に属するファンドの楽天証券ファンドスコア値を上位から並べ、その順位を下表の範囲に応じて5段階で相対評価します。

（WEBサイト上では、ファンド詳細画面の右下に計算期間1年、3年、5年、10年の推移を公表しています）


https://www.rakuten-sec.co.jp/web/fund/fundscore/

The category is also very broad EM and Developed? 先進国・新興国株式（広域）-為替ヘッジ無し

That is basically the entire global economy.

A Fund that weighted those differently would have much different performance.

Here is another top fund on that list -

グローバル・フィンテック株式ファンド
Global FinTech Equity Fund
https://www.rakuten-sec.co.jp/web/fund/ ... 90C000EAS8

That is a sector ETF ...in the same category!

*CliffsNotes - The ratings are bunk. Apples and oranges in a bull market*

N00bster wrote: ↑Thu Feb 04, 2021 11:08 am Rakuten Securities shows the performance of the fund (blue line) compared to the average of its category (分類平均, red line)

What else is in the category? As far as I know this is the only whole-world including Japan fund, so I'm not sure what it's being compared to.

Here's the screenshot from the fund's December report. It's basically on its benchmark.



PS @Kanto, could you maybe avoid always quoting the full original post, especially when it's long and full of images? My scroll wheel will thank you. 🖱

adamu wrote: ↑Thu Feb 04, 2021 11:45 am

N00bster wrote: ↑Thu Feb 04, 2021 11:08 am Rakuten Securities shows the performance of the fund (blue line) compared to the average of its category (分類平均, red line)

What else is in the category? As far as I know this is the only whole-world including Japan fund, so I'm not sure what it's being compared to.

PS @Kanto, could you maybe avoid always quoting the full original post, especially when it's long and full of images? My scroll wheel will thank you. 🖱

Gotacha, fixed it.

The category is 先進国・新興国株式（広域）-為替ヘッジ無し

If you click on it in Rakuten you can see it includes a bit of...well everything. Things that have no basis being compared.

Thanks for the precision. I think that what surprises me the most here is the difference in performance between 全世界株式 and 先進国株式インデックス. But considering that the difference is that Japan and developing nations are included in 全世界株式 (correct?), I guess my surprise comes from a misunderstanding of the composition of these stocks?

N00bster wrote: ↑Tue Feb 09, 2021 1:22 am Thanks for the precision. I think that what surprises me the most here is the difference in performance between 全世界株式 and 先進国株式インデックス. But considering that the difference is that Japan and developing nations are included in 全世界株式 (correct?), I guess my surprise comes from a misunderstanding of the composition of these stocks?

It's not been in the news much, but emerging markets have had a stellar year. From their pre-Covid levels emerging markets are up 25% vs 14% for the S&P500 (in yen terms). Most of the gains have been since a certain person lost the US election...

fools_gold wrote: ↑Tue Feb 09, 2021 1:26 am

N00bster wrote: ↑Tue Feb 09, 2021 1:22 am Thanks for the precision. I think that what surprises me the most here is the difference in performance between 全世界株式 and 先進国株式インデックス. But considering that the difference is that Japan and developing nations are included in 全世界株式 (correct?), I guess my surprise comes from a misunderstanding of the composition of these stocks?

It's not been in the news much, but emerging markets have had a stellar year. From their pre-Covid levels emerging markets are up 25% vs 14% for the S&P500 (in yen terms). Most of the gains have been since a certain person lost the US election...

Shouldn't that result in the total world funds performing better than the advanced countries ones? The data I have seen indicates the contrary...

The US has definitely been taking off since 2008. But that doesn't mean it will continue that way.

Here's a nice graph
https://www.longtermtrends.net/msci-usa-vs-the-world/

N00bster wrote: ↑Wed Feb 10, 2021 4:22 am Shouldn't that result in the total world fund performing better than the advanced countries ones? The data I have seen indicates the contrary...

The total world fund has outperformed the advanced countries fund this year because of the inclusion of Japanese and emerging markets stocks. They've both outperformed US stocks this year.

The problem is that the emaxis slim advanced countries fund and total world stocks funds fall into different categories at Rakuten. (先進国株式（広域）-為替ヘッジ vs 無し先進国・新興国株式（広域）-為替ヘッジ無し). This means that the Rakuten category averages are also different, so you can't use that to compare funds across categories.

If you compare the emaxis slim funds directly you get this


Edited: fixed image link and edited for clarity

So seeing all this graphs, which ETF would be a good choice to invest in long term? (again a newby question, sorry)