《New NISA 4》 The Only One Fund Beginners Should Buy First—A Complete Guide to Choosing Between "All Country" and "S&P 500"

End the "What should I buy?" problem today

You've opened a NISA account. The next hurdle is "what to buy."

There are over 6,000 investment trusts in Japan alone. Many people become "ghost investors" who leave their accounts open without buying anything because they don't know what criteria to use for choosing.

Here is the conclusion.There are only two products that investment beginners should buy first in their tsumitate investment quota.

Either "eMAXIS Slim Worldwide Equity (All Country)" or "eMAXIS Slim US Equity (S&P 500)." Just pick one.

Why these "two funds"?

Reason 1: Trust fees are at the lowest level in the industry

Both have trust fees in the 0.05% to 0.1% range annually, which is among the lowest for investment trusts.

For comparison, the trust fees for investment trusts recommended at bank counters are often around 1% to 2%. This difference can lead to a gap of several million yen in your final assets over 30 years of investment.

Reason 2: Long-term track record and large net asset balance

Products with a large net asset balance (the total funds collected from investors) have a low risk of early redemption (the risk of the product being terminated). Both boast some of the largest net asset balances in Japan, making long-term holding over several decades a realistic option.

Reason 3: Ability to diversify investments across global stocks

By buying just one of these, you are automatically diversifying your investment across hundreds to thousands of companies. Unlike individual stocks, there is no risk of losing everything if one company goes bankrupt.

What is All Country (Worldwide Equity)?

"eMAXIS Slim Worldwide Equity (All Country)," commonly known as "Orkan," is an index fund that invests in over 3,000 companies across approximately 50 countries worldwide.

The breakdown is about 60% in the US, with the remaining 40% in Japan, Europe, emerging markets, and others.

It is a product that bets on the premise that "the global economy will continue to grow." It offers a diversification effect where Europe or emerging markets can compensate if the US is underperforming, and vice versa.

What is the S&P 500?

"eMAXIS Slim US Equity (S&P 500)" is an index fund that invests in the top 500 large-cap companies in the United States.

It invests in the cream of the US economy, including world-leading technology companies like Apple, Microsoft, Nvidia, Amazon, and Alphabet (Google).

It has recorded an average annual return of approximately 10% (dollar-based, including dividends) over a long-term track record of more than 30 years.

It is a product that bets on the premise that "the U.S. economy will continue to grow in the long term."

All Country vs. S&P 500: Which Should You Choose?

Either choice is "correct." However, because there are differences in philosophy, it is best to choose the one that aligns with your own thinking.

Reasons to choose the S&P 500: Its long-term historical performance is excellent. Considering the global business operations of U.S. companies (such as Apple and Google), the S&P 500 itself is "effectively globally diversified." I want to bet on U.S. growth more simply.

Reasons to choose All Country: Suitable for those who are "worried about being 60% concentrated in one country, the U.S." It can adapt if emerging countries like China or India rise in the future. I value the ultimate simplicity of "this one fund is truly all you need."

If you are unsure, one All Country fund is enough. The fact that it is "diversified across the world" contributes to the mental stability of beginners.

Membership Information

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Rules for Buying: "Fixed Monthly Amount, Don't Sell, Don't Increase"

Regardless of which one you choose, there are only three rules for buying.

Set up a fixed monthly investment (automate it so you "don't think"). Do not sell even if it drops (a drop is a chance to buy cheap). Do not buy significantly more even if it surges (avoid emotional actions).

By just following these three rules, you are highly likely to achieve better results than many investors in the long term.

About this series

The series concludes with 10 episodes (including this compilation).
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📌 About US Stock Journal

This is a note that analyzes individual U.S. stocks using two signals that
most individual investors do not use:
patent application data and job opening information.

Details of the data that formed the basis of this article (patent numbers and job trend figures)
are posted in the membership-only articles.

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⚠️ Disclaimer
This article is intended for informational purposes only and does not recommend the purchase or sale of any specific stock or financial product. Please make investment decisions at your own risk.
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#NewNISA #AllCountry #S&P500 #eMAXIS_Slim #InvestmentTrust #IndexInvesting #Beginner #DailyNote #DailyUpdate #Column

Evidence:

• Mitsubishi UFJ Asset Management – eMAXIS Slim Series : https://emaxis.jp/lp/slim/

• Investopedia – S&P 500 Index : https://www.investopedia.com/terms/s/sp500.asp

• MSCI – ACWI Index : https://www.msci.com/our-solutions/indexes/acwi