Hey everyone, Hirokichi here. Today I want to dig into two funds that are absolute staples in Japan’s new NISA (tax-free investment account) world: “eMAXIS Slim All Country World Stocks,” nicknamed “Orcan,” and “eMAXIS Slim U.S. Stocks (S&P500).” I’ll walk through what each fund actually holds and just how popular they’ve become here in Japan, using the latest data. If you’ve been wondering which one to pick, I hope this helps.
What is eMAXIS Slim All Country World Stocks (Orcan)?
Orcan aims to track the MSCI All Country World Index (dividends included, converted to yen) — an index fund (a fund designed to move in line with a benchmark index). Its biggest feature is that it spreads your money across roughly 3,000 stocks in developed and emerging markets, including Japan, all in one fund. That “one fund covers the whole world” simplicity is a big reason it remains so popular with beginners. That said, U.S. companies actually make up about 60% of the fund by weight, so despite the “all world” name, it leans pretty heavily toward America. Still, being spread across dozens of countries including emerging markets means it’s less exposed to any single country’s economy or politics, which is where Orcan’s sense of safety comes from.
What is eMAXIS Slim U.S. Stocks (S&P500)?
The S&P500 fund, on the other hand, aims to track the S&P 500 index, made up of 500 leading U.S. companies like Apple, Microsoft, and Amazon. Because it’s concentrated entirely in one country, it tends to swing more than Orcan — higher risk, higher potential reward. U.S. stocks, especially AI-related names, have been on a strong run these past few years, and I often hear people say this fund has outperformed Orcan. It’s a good fit if you want to bet directly on the growth of the U.S. economy.
Comparing Fees and Assets Under Management (Latest 2026 Data)
Let’s compare cost and scale, since both matter a lot for a fund you plan to hold for years. On fees (the annual expense ratio you pay just for holding the fund), Orcan sits at 0.05775% per year (tax included) or less. The S&P500 fund crossed ¥10 trillion in assets back in January 2026, which triggered a step-down in its fee under the fund’s tiered structure — it’s now down to 0.07661% per year (tax included). Both funds use what’s called an “investor-return fee structure,” where the fee rate drops in stages as the fund’s assets grow.
As for assets under management (a measure of how much money has flowed into the fund), Orcan stood at about ¥12.98 trillion as of July 8, 2026, while the S&P500 fund stood at about ¥12.47 trillion as of July 7, 2026. Both have grown into massive funds worth over ¥12 trillion. Considering these were both just a few hundred billion yen a handful of years ago, that growth is honestly staggering.
Just How Popular Are These Funds in Japan?
Let’s look at actual popularity numbers too. In PayPay Securities’ purchase-amount ranking for May 2026, the S&P500 fund came in at No. 1, with Orcan right behind at No. 2. Across other brokerages’ NISA installment-investment rankings, these two funds consistently sit at the top. Since the new NISA system launched, “you can’t really go wrong picking one of these two” has become the conventional wisdom among Japanese investors.
How They Fit Into the New NISA System
The good news is both funds qualify for the new NISA’s “installment investment” tax-free frame. Combined with their low fees, which suit long-term holding, and the tax-free growth NISA offers, the fit is excellent. Once you set a monthly contribution amount, the purchases happen automatically, which makes it easier to keep building wealth steadily without obsessing over short-term price swings.
Orcan or S&P500 — Which Should You Choose?
My honest take, personally, is that you won’t go badly wrong with either one. If you want to bet on U.S. growth specifically, go with the S&P500 fund. If you’d rather avoid concentrating your risk in one country and spread it across the whole world, go with Orcan. That said, as I mentioned, Orcan is already about 60% U.S. stocks under the hood, so in practice the two funds move in fairly similar ways. If you’re torn, splitting your contributions evenly between both is a perfectly reasonable option too.
Both are low-cost, large-scale funds you can hold with confidence for the long haul. Pick the approach that fits your own investment style, and keep building steadily without overextending yourself. See you next time!
* This article is for informational purposes only and does not recommend any specific investment. Please make investment decisions at your own responsibility.
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