RetireJapan

Hi there! Many do recommend the famous eMaxis slim All Country, Developed Country and S&P 500 MFs which focus strongly on US index. No question US stocks are performing well but I wonder if the performance will continue, especially from the long-term perspective.

First, I was thinking about Emerging Markets but China seems to regulating more and more their tech giants. Makes me rather not to chose that one.

So, I like to ask the experts in this community what you would recommend investing in a long-term period of 5-10 years (or even longer if stable).

I don't know what is going to happen in the future, or which country's stock market is going to perform best, so I prefer to own all of them (all-country fund).

I also think the All Country fund is a good baseline, I was thinking of a 70:30 ratio.

70% All Country fund
30% ?

But couldn’t yet decide on the 30% fund hmm…

All Country already has all the countries so you're now hedged towards the entire world. RJ is saying that its better to invest in the entire world and not worry about the rest.
Your 30% in another fund would mean that you're betting on something else.

If you want to go all-in on America: S&P500
If you want to go all-in on Japan: TOPIX
If you want advanced countries and not just America (but not Japan): Developed countries
If you want to invest in China and the developing world: Developing countries

All of those give you different exposure and it depends on what you believe in going forward.

Herras wrote: ↑Fri Aug 13, 2021 7:48 am I also think the All Country fund is a good baseline, I was thinking of a 70:30 ratio.

70% All Country fund
30% ?

But couldn’t yet decide on the 30% fund hmm…

85% All Country fund
10% eMAXIS Slim 先進国債券インデックス
5% ｅＭＡＸＩＳ　Ｓｌｉｍ　先進国リートインデックス

There you go. 85% All Country, 10% Advanced Country bonds, 5% Advanced Country REITS

Established wrote: ↑Fri Aug 13, 2021 3:47 pm
85% All Country fund
10% eMAXIS Slim 先進国債券インデックス
5% ｅＭＡＸＩＳ　Ｓｌｉｍ　先進国リートインデックス

There you go. 85% All Country, 10% Advanced Country bonds, 5% Advanced Country REITS

You could add some Japanese REITS too. They are less correlated with foreign stocks.

fools_gold wrote: ↑Sat Aug 14, 2021 1:30 am

Established wrote: ↑Fri Aug 13, 2021 3:47 pm
85% All Country fund
10% eMAXIS Slim 先進国債券インデックス
5% ｅＭＡＸＩＳ　Ｓｌｉｍ　先進国リートインデックス

There you go. 85% All Country, 10% Advanced Country bonds, 5% Advanced Country REITS

You could add some Japanese REITS too. They are less correlated with foreign stocks.

Maybe once their portfolio grows. They are 8.5% of the Global REIT category.

So assuming he is starting off with a $10,000 allocation, it is probably no worth buying $42.50 worth of J-REITS.

Established wrote: ↑Sat Aug 14, 2021 2:37 am
Maybe once their portfolio grows. They are 8.5% of the Global REIT category.

So assuming he is starting off with a $10,000 allocation, it is probably no worth buying $42.50 worth of J-REITS.

That's true, but there are reasons why a Japanese investor might want to be overweight Japanese REITS. For example, to reduce currency risk or to invest in something that is less correlated to regular stocks. That's why I buy them.

fools_gold wrote: ↑Sat Aug 14, 2021 4:35 am

Established wrote: ↑Sat Aug 14, 2021 2:37 am
Maybe once their portfolio grows. They are 8.5% of the Global REIT category.

So assuming he is starting off with a $10,000 allocation, it is probably no worth buying $42.50 worth of J-REITS.

That's true, but there are reasons why a Japanese investor might want to be overweight Japanese REITS. For example, to reduce currency risk or to invest in something that is less correlated to regular stocks. That's why I buy them.

Point taken, but I would not advocate for a beginner to overweight anything.

Herras wrote: ↑Fri Aug 13, 2021 7:48 am I also think the All Country fund is a good baseline, I was thinking of a 70:30 ratio.

70% All Country fund
30% ?

But couldn’t yet decide on the 30% fund hmm…

You may know already but it’s easy to check the composition of the all country fund. Look for the 目的・特色 pdf for the fund. Presently, it’s nearly 58% US Stock although I expect that to be rebalanced down to 55% or something.

If you can’t decide on the other 30 (other than bonds) then it seems like you are a great candidate to just go with the all country at this time. Otherwise wouldn’t you just be guessing. No disrespect intended as I’m a massive noob myself.
If that seems just too boring then you could divert a much smaller percentage to specific geographic or even sector funds. Just small enough so you won’t become demotivated if something under performs.