Investment products
All Country vs the S&P 500: what actually differs?
All Country, often called Orukan in Japanese, is a nickname for a fund that holds stocks worldwide. The S&P 500 is an index of large U.S. companies. The comparison is coverage, not a winner.
The difference in 30 seconds
- All Country spreads across world stocks, including developed and emerging markets.
- The S&P 500 stays inside large U.S. companies. Other countries are outside the index.
- The largest difference is the market you own and how concentrated it is in the United States, not which firm’s logo is on the fund.
Quick comparison
| Item | All Country | S&P 500 |
|---|---|---|
| Region | Stock markets worldwide | United States |
| Usual index | A world index such as MSCI ACWI | S&P 500 |
| Countries | Developed and emerging markets | The United States |
| U.S. stock weight | Moves when the index is rebalanced. The U.S. is often a large share | The index is U.S. large caps |
| Number of holdings | Changes with the index. Use the latest index materials | A large-cap index. Membership changes, so no fixed count is printed here |
| Diversification | Broad across countries | Spread inside U.S. large caps |
| Currency | Several currencies. A yen investor still has FX exposure | Mostly the U.S. dollar |
| NISA | Some products qualify. The index itself is not the product | Some products qualify. The index itself is not the product |
| Main risk source | World equities, a large U.S. weight, emerging markets, FX | U.S. large caps, a few very large companies, the dollar |
What you actually own
Funds called All Country usually track a world equity index such as MSCI ACWI. One fund can hold Japanese, U.S., European, and emerging-market stocks.
The S&P 500 tracks large U.S. companies. It does not include smaller U.S. companies or stock markets outside the United States.
Holding both is not automatic extra diversification
An All Country fund already contains a large block of U.S. stocks. That share moves when the index is reconstituted. Use the current index materials for the percentage.
Owning All Country and an S&P 500 fund together is usually not “the world plus a separate United States.” It usually raises the weight of U.S. stocks you already hold. Whether that fits you depends on the rest of the portfolio and on your goal.
Where the risk comes from
The S&P 500 is exposed to the U.S. economy, U.S. interest rates, and the largest companies in the index. It is not the entire U.S. stock market.
All Country is broader by country, but market-cap weighting can still leave a large role for U.S. stocks and large technology companies. Emerging markets add their own political and currency swings. From Japan, both still involve the yen.
Easy to mix up
Often heard as
All Country means you have left U.S. risk behind
Read it as
A world index can still be dominated by U.S. stocks. A U.S. decline does not disappear.
Often heard as
The S&P 500 is the whole U.S. market
Read it as
It is a large-cap index. Smaller U.S. companies sit in other indexes.
Often heard as
Buying both simply adds diversification
Read it as
The overlap often increases the U.S. weight rather than adding an independent market of the same size.
Often heard as
Past returns will repeat
Read it as
A historical result is not a promise about the next period.
How to read this inside NISA
Both an All Country fund and an S&P 500 fund or ETF can have NISA-eligible share classes. The index and the product are not the same thing.
Whether it fits the Tsumitate quota or only the Growth quota depends on the product. Confirm the current listing before you rely on it.
Keep reading
Read the difference against your own goal
The useful next step is not “tell me which to buy.” It is to see what the difference in coverage means next to your time horizon and what you already hold.
FSA: About NISA · National Tax Agency: NISA
This is information for learning, not personal investment advice. Eligibility, fees, and broker terms can change. Check the current official information before you act.