eMAXIS Slim or Nomura NISA?

[nafis4268]

I see Nomura has started a new NISA fund now, it looks like a eMAXIS Slim replacement. If I'm going to buy new NISA in the end of this month,

[eMAXIS Slim]

• all country 22,294 per share
• S&P500 Index 26,421 per share

[Nomura NISA fund]

• all country 11,559 per share
• S&P500 Index 11,759 per share

The goal here is to hold it for a long term, at least 5 years or more. Which one would you choose?

Also, I might put some money in DAIWA FANG+ Index fund... Is there any good person with conscience wish to stop this evil act? ¬‿¬

 

[saramae]

@nafis4268 First let me ask you why are you considering that new fund over the proven eMaxis slim?

 

[nafis4268]

@saramae Same fee but cheaper price per share. And Nomura seems like not a bad choice?

 

[saramae]

@nafis4268 Assuming they follow the same index. It's not really cheaper. It's more of the same. It just means the slice of the pie is cheaper but also smaller.

It's like if a pie is cut in 10 instead of 5
But. Slice is 1$ instead of 2$

They have be about a 2x difference in price.
But if the stock market goes up 5% both will grow 5%(minus tracking errors)

 

[nafis4268]

@saramae I see! Thanks for the clear explanation!!
I guess I have to take another class on financial literacy…

 

[finchescare3marky]

@saramae A bit late to the party but I have a question if you don't mind.

Considering that I invest X amount of money, regardless of the price or number of a share, why would the price per share matters ?

5% of 100,000 with 10 shares will return as much money as 5% of 100,000 with 20 shares ?

 

[saramae]

@finchescare3marky The price does not matter return will be the same, across funds following the same index (+- some error margin).

Everything underneath is in % so

2% of the portfolio in Apple shares is still 2% even if you only invest 10$ or 10 million$ of course the total amount of shares will be different but the returns in % should be the same

 

[finchescare3marky]

@saramae I felt like you were making a point for Emaxis being better but re-reading your comments make it seems like the opposite now..

I've decided to go with the Rakuten S&P500, Rakuten All country and Rakuten NASDAQ100. If I can't fill up my NISA next year (lack of funds), I may even sell my Emaxis and buy the Rakuten's.

Anyway, thanks!