Why Gold Deserves a Spot in Your Portfolio: Enhancing Diversification Beyond All Country and S&P 500
[In JPY Terms] Trends in the Base Price of Gold and the S&P 500
We will examine the trends in the base prices of the Gold Fund and the S&P 500 Index Fund.
For the Gold Fund, we have selected the “Gold Fund (No Currency Hedge)” [Trust Fee: 0.407% per year], which has a relatively long track record. Its inception date is July 31, 2017.
For the S&P 500 Index Fund, we have chosen the “iShares U.S. Equity (S&P 500) Index Fund” [Trust Fee: 0.0938% per year], which was launched on September 3, 2013.
The following data is indexed to “100” as of July 31, 2017.
Both funds are influenced by USD/JPY exchange rate fluctuations, resulting in similar price movements. However, when observing the circled areas, we can see that they exhibit opposite trends. During stock market downturns, gold prices either rise or remain stable. Holding a 50/50 allocation helps smooth out fluctuations while maintaining an upward trajectory.
Stocks are essential for long-term wealth accumulation, but incorporating gold into your portfolio can enhance resilience against market crashes while boosting returns.
In the premium version of FRIDAY Subscription, we analyze and recommend specific low-cost gold funds and ETFs. We also compare USD vs. JPY investments, hedged vs. non-hedged options, and mutual funds vs. ETFs to help investors make informed choices.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should make decisions at their own discretion and assume full responsibility for any financial outcomes. While data and stock prices have been reviewed by the editorial team, we recommend verifying them independently before making investment decisions.
Interview and text： Taiki Yorifuji
Taiki Yorifuji
Money consultant.
Money consultant. (Representative Director of Money & You Inc. Visiting lecturer at Chuo University, Faculty of Commerce.
After graduating from Keio University, Faculty of Economics, Mr. Yorifuji joined the Japan Association of Money Management.
Graduated from Keio University, Faculty of Economics, and engaged in asset management risk management at a foreign life insurance company. Founded the company in 2003 and is currently in his current position. He has appeared on Nippon TV's "Learning with Kazu Laser" and TBS's "Information 7days". and TBS "Information 7days Newscaster". He is the author of 100 books including "Hajimete no Shin NISA & iDeCo" (Seibido-Shuppan) and "Teireki Koto Zutto Mukonenai Money no Hanashiwa" (Daiwa Shobo), which has sold a total of 1.8 million copies. and Voicy "Money Radio in 5 minutes a day". He is a member of the Japan Pension Association. Member of Japan Securities Analysts Association. Certified Real Estate Transaction Specialist. Financial planner (AFP). Member of Japan Society of Actuaries.PHOTO： Afro
