Best Index Funds for NISA in Japan (2026)
A comparison of the most popular index funds available in Japanese NISA accounts — fees, performance, and which to choose.
Quick Answer
For most foreigners, eMAXIS Slim 全世界株式 (All Country) is the best choice — it tracks the global market at just 0.05775% annual fee. If you prefer US-only exposure, eMAXIS Slim 米国株式 (S&P 500) at 0.09372% is excellent. Both are available in the つみたて投資枠.
How to choose an index fund — ファンド選びの基準
With hundreds of funds available in NISA, choosing can feel overwhelming. But the decision is simpler than it looks. Here are the four factors that actually matter:
- Low fees (信託報酬) — the annual management fee is deducted from your returns every single year, so even a 0.1% difference compounds into a massive gap over 20-30 years. Prioritize funds with fees under 0.15%.
- Broad diversification — a single fund that tracks the entire global market (or the entire US market) gives you exposure to thousands of companies. No need to pick individual winners.
- Large AUM (純資産総額) — a fund with large assets under management is less likely to be liquidated and tends to track its index more accurately. Look for funds with at least ¥100 billion AUM.
- Track record — while past performance does not guarantee future results, a fund that has consistently tracked its benchmark index closely (low tracking error) is well-managed.
Key principle
For index fund investing, cost is the single best predictor of future performance. Two funds tracking the same index will deliver nearly identical gross returns — but the one with lower fees will always put more money in your pocket. This is why the eMAXIS Slim series dominates: they have a policy of matching or beating the lowest fee in the industry.
Top funds for つみたて投資枠 — 積立投資枠おすすめファンド
The つみたて投資枠 (regular investment slot) has a ¥1.2 million annual limit and is restricted to funds approved by 金融庁 — typically low-cost index funds and balanced funds. This is where most investors should start. Here are the top picks:
| Fund name | Index tracked | Annual fee | AUM |
|---|---|---|---|
| eMAXIS Slim 全世界株式 (オール・カントリー) Top pick | MSCI ACWI | 0.05775% | ¥5 trillion+ |
| eMAXIS Slim 米国株式 (S&P 500) | S&P 500 | 0.09372% | ¥6 trillion+ |
| eMAXIS Slim 先進国株式インデックス | MSCI Kokusai | 0.09889% | ¥800 billion+ |
| たわらノーロード 先進国株式 | MSCI Kokusai | 0.09889% | ¥500 billion+ |
| <購入・換金手数料なし> ニッセイ外国株式インデックスファンド | MSCI Kokusai | 0.09889% | ¥700 billion+ |
eMAXIS Slim 全世界株式 (オール・カントリー) — commonly called "オルカン" — is the single most popular fund in Japan's NISA program. It tracks the MSCI All Country World Index, giving you exposure to approximately 2,800+ stocks across 47 countries (both developed and emerging markets). At a fee of just 0.05775%, it is one of the cheapest all-world index funds available anywhere. If you want one fund to buy and hold forever, this is it.
eMAXIS Slim 米国株式 (S&P 500) is the second most popular choice. It tracks the S&P 500 index — the 500 largest US companies. If you believe the US market will continue to outperform global markets, this gives you concentrated US exposure at a very low fee. Note that the All Country fund already has roughly 60% US allocation, so choosing the S&P 500 fund is essentially a bet that the US will continue to lead.
The remaining three funds all track the MSCI Kokusai index (developed markets excluding Japan). They are nearly identical in fees and performance — the difference comes down to which fund family your broker promotes or offers the best point integration with. If you're choosing between these three, go with the one available at your broker; they will all deliver virtually the same returns.
What about Rakuten and SBI branded funds?
楽天・オールカントリー and SBI・V・全世界株式 are also excellent choices with comparable fees. If you use Rakuten Securities or SBI Securities, these in-house funds can earn you bonus points. But the eMAXIS Slim versions have larger AUM and longer track records, making them the safer default.
Top options for 成長投資枠 — 成長投資枠の選び方
The 成長投資枠 (growth investment slot) has a ¥2.4 million annual limit and allows a much wider range of investments — including individual stocks, ETFs, REITs, and actively managed funds. Here's how most investors use it:
Option 1: Same index funds as つみたて枠 (recommended for most people)
The simplest approach: buy the same eMAXIS Slim 全世界株式 or S&P 500 fund in your 成長投資枠. This maximizes your total tax-free index fund allocation (up to ¥3.6M/year combined). Most financial experts in Japan recommend this approach because it keeps things simple and ensures broad diversification across your entire NISA portfolio.
Option 2: Individual stocks (Japanese or international)
You can buy individual Japanese stocks (Toyota, Sony, etc.) or international stocks (Apple, Google, etc. via certain brokers) in the 成長投資枠. Dividends from Japanese stocks held in NISA are completely tax-free — making high-dividend Japanese stocks (e.g., 三菱商事, KDDI, 日本たばこ) a popular choice. For international stocks, note that foreign withholding tax still applies (e.g., 10% US tax on dividends).
Option 3: ETFs (exchange-traded funds)
Japanese-listed ETFs like MAXIS 全世界株式 (2559) or NEXT FUNDS TOPIX (1306) can be bought in the 成長投資枠. US-listed ETFs (VT, VOO, VTI) are also available through brokers like SBI and Rakuten. ETFs trade like stocks throughout the day, while mutual funds are priced once daily.
Option 4: J-REIT (不動産投資信託)
J-REITs (Japanese Real Estate Investment Trusts) give you exposure to Japanese commercial real estate — office buildings, residential complexes, logistics centers — with dividends typically in the 3-5% range. Dividends are tax-free within NISA. Popular options include 日本ビルファンド (8951) and ジャパンリアルエステイト (8952).
Important
The 成長投資枠 has a lifetime limit of ¥12 million (within the overall ¥18 million NISA lifetime cap). If you sell investments in the 成長投資枠, that space becomes available again the following year, based on the original purchase price. This means you can rotate investments — but don't over-trade, as frequent buying and selling defeats the purpose of long-term tax-free growth.
Fee comparison over 20 years — 手数料の長期影響
Fees look tiny — 0.05% vs 0.15% feels like nothing. But compounded over decades, the difference is enormous. Here's what happens to a ¥10 million investment over 20 years (assuming 7% average annual return before fees):
| Annual fee | Value after 20 years | Total fees paid | Example fund |
|---|---|---|---|
| 0.05775% | ¥38,460,000 | ~¥160,000 | eMAXIS Slim 全世界株式 |
| 0.10% | ¥38,310,000 | ~¥280,000 | eMAXIS Slim 先進国株式 |
| 0.20% | ¥37,940,000 | ~¥560,000 | Some balanced funds |
| 0.50% | ¥36,850,000 | ~¥1,400,000 | Actively managed funds |
| 1.50% | ¥33,060,000 | ~¥4,200,000 | Bank-sold active funds |
The difference between a 0.05% fund and a 1.5% fund is over ¥5.4 million — more than half of your original investment. This is why the eMAXIS Slim series is so popular: their commitment to industry-lowest fees means you keep more of your returns.
Never buy a fund through your bank's counter (窓口). Banks in Japan overwhelmingly push high-fee actively managed funds (1-2% annual fee) because that's how they earn commissions. Open an online brokerage account and buy low-cost index funds directly.
Fee terminology
信託報酬 (trust fee / management fee) is the ongoing annual fee deducted from the fund's net asset value. This is the number to compare. 購入時手数料 (purchase commission) is a one-time fee when you buy — all the funds listed in this guide are ノーロード (no purchase fee). 信託財産留保額 (redemption reserve) is charged when you sell — most modern index funds set this to zero.
Performance comparison — パフォーマンス比較
Since the funds in each category track the same index, their performance is nearly identical — the main difference is fees. Here's a rough comparison of the underlying indexes over recent periods (returns in JPY terms, including currency effects):
| Index | Representative fund | 1-year | 3-year (annualized) | 5-year (annualized) |
|---|---|---|---|---|
| MSCI ACWI | eMAXIS Slim 全世界 | +18-25% | +15-20% | +15-18% |
| S&P 500 | eMAXIS Slim 米国株式 | +20-28% | +18-22% | +18-22% |
| MSCI Kokusai | eMAXIS Slim 先進国 | +18-26% | +16-20% | +16-19% |
| TOPIX | eMAXIS Slim 国内株式 | +10-18% | +10-15% | +10-14% |
Important caveats: These return ranges reflect recent strong market performance plus the weak yen, which has boosted foreign-denominated returns when measured in JPY. Past returns — especially over the last few years — have been exceptionally high by historical standards. Do not expect 20%+ annual returns going forward. A more realistic long-term expectation for a globally diversified portfolio is 5-8% per year (in nominal terms).
The S&P 500 has outperformed global indexes recently because US tech stocks have had an extraordinary run. However, this does not mean US stocks will always outperform. In the 2000s decade, emerging markets and international stocks significantly outperformed the US. This is why the All Country fund is the safer default — it automatically adjusts to wherever growth is happening.
Simple asset allocation suggestions — 資産配分のヒント
Your ideal asset allocation depends on your age, risk tolerance, and how long you plan to stay in Japan. Here are three simple portfolios that work for most foreigners:
The One-Fund Portfolio (simplest)
100% eMAXIS Slim 全世界株式
Buy one fund and never think about it again. This single fund gives you exposure to the entire global stock market — US, Europe, Japan, emerging markets — weighted by market capitalization. It automatically rebalances as markets shift. This is genuinely all most people need, and it's what Warren Buffett recommends for non-professional investors (with a US-equivalent fund).
The US-Tilted Portfolio (higher growth potential, higher risk)
70% eMAXIS Slim 米国株式 (S&P 500) + 30% eMAXIS Slim 全世界株式
If you believe the US will continue to be the dominant economy, this tilts your portfolio toward US large-cap stocks while maintaining some global diversification. The overall US exposure ends up around 80%. Good for investors with a 20+ year horizon who are comfortable with concentration risk.
The Conservative Portfolio (lower volatility)
70% eMAXIS Slim 全世界株式 + 30% eMAXIS Slim 国内債券インデックス
Adding Japanese government bonds reduces volatility and provides stability in JPY terms. Suitable for investors closer to retirement, those with a shorter time horizon (5-10 years), or anyone who knows they'll lose sleep during a 30% market crash. The bond allocation acts as a cushion during downturns.
Currency risk for foreigners
If you plan to eventually leave Japan, your situation is different from a Japanese investor. You'll convert your JPY investments back to your home currency (USD, GBP, EUR, etc.). A global fund denominated in JPY gives you natural currency diversification — when the yen weakens, your foreign-stock holdings gain value in JPY. Do not hedge currency if your goal is to eventually leave Japan — the "risk" works in your favor. If you plan to stay permanently, think of the yen as your base currency and invest accordingly.
Frequently Asked Questions — よくある質問
Should I pick 全世界 (All Country) or S&P 500?
If you're unsure, go with 全世界 (All Country). It gives you exposure to the entire global market, including the US (which makes up about 60% of the index). The S&P 500 has outperformed recently, but past performance is not predictive. The All Country fund ensures you're never overly concentrated in one market. Either choice is excellent — the most important thing is to start investing, not to agonize over which fund.
Can I change my fund later?
Yes. You can change your つみたて設定 (automatic contribution settings) at any time — typically taking effect the following month. Your existing holdings stay where they are; only new contributions go to the new fund. You can also sell existing holdings and rebuy different funds, but be aware that selling uses up your NISA space for the year (it becomes available again the following year based on the purchase price).
Are actively managed funds worth the higher fees?
Almost never. Decades of data from the US, Europe, and Japan consistently show that 80-90% of actively managed funds underperform their benchmark index over any 10-year period. The few that outperform are nearly impossible to identify in advance. The guaranteed cost savings of a low-fee index fund almost always beats the uncertain chance of an active manager outperforming. Stick with index funds, especially in a tax-free account like NISA where every basis point of return matters.
What happens to my NISA funds if I leave Japan?
If you leave Japan and lose your resident status, you can keep your existing NISA holdings but you cannot make new contributions. You'll need to submit a 継続届出書 (continuation notification) to your broker. Your holdings will be moved to a 継続管理勘定 (continuation management account) and gains remain tax-free in Japan. However, you may owe tax in your new country of residence. Check our NISA guide leaving Japan section for details.
How much should I invest per month?
As much as you can comfortably afford after building a 3-6 month emergency fund. The つみたて投資枠 allows up to ¥100,000/month (¥1.2M/year). Many foreigners in Japan start with ¥30,000-50,000/month and increase as their income grows. If you can invest via credit card at your broker (up to ¥100,000/month at SBI, Rakuten, or Monex), you'll earn 0.5-1% in points on those contributions — essentially free money.
What is the difference between eMAXIS and eMAXIS Slim?
Always choose the Slim version. The original eMAXIS series has higher fees (e.g., eMAXIS 全世界株式 charges 0.66% vs 0.05775% for the Slim version). They track the same indexes but the non-Slim versions are relics from when fund fees in Japan were much higher. The "Slim" branding was introduced to compete on cost, and these have become the industry standard. Make sure you see "Slim" in the fund name.
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Sources
- 金融庁 つみたて投資枠対象商品一覧 (fsa.go.jp/policy/nisa2/)
- 三菱UFJアセットマネジメント eMAXIS Slim シリーズ公式サイト (emaxis.jp)
- アセットマネジメントOne たわらノーロード公式サイト (am-one.co.jp)
- ニッセイアセットマネジメント <購入・換金手数料なし>シリーズ公式サイト (nam.co.jp)
- 各運用会社公式サイト（目論見書・運用報告書）
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