Comparison of FANG+ and Rakuten Tech 12
What is the difference between FANG+ and Rakuten Tech 12?
Although they seem similar, the mechanisms of these ‘US tech concentrated investment’ funds are completely different.
FANG+ has long been popular as an investment trust that allows for concentrated investment in large US tech companies.
And on September 25, 2026, Rakuten Tech 12 was newly introduced.
Both are
“I want to invest heavily in growing US companies”
a point of interest for those who say.
However, these two,
actually have quite different ways of selecting stocks.
In particular, FANG+ has
“6 stocks that are fixed in principle + 4 stocks that are rotated”
is a characteristic.
This time, I will compare the mechanisms of FANG+ and Rakuten Tech 12.
—
First, the conclusion
To summarize roughly, it looks like this.
| FANG+| Rakuten Tech 12
Number of stocks| 10 stocks| 12 stocks
Basic concept| 6 major stocks + 4 growth companies| 12 mega-cap tech stocks
Fixed quota| 6 FAANMG stocks are fixed in principle| Not based on a fixed quota concept
Rotation quota| 4 stocks| 12 stocks selected based on rules
Weighting| Equal weight of approx. 10% each| Top 7 stocks = 12% each, remaining 5 stocks = 3.2% each
Review| 4 times a year| 4 times a year
Trust fee| 0.7755% per year*| 0.462% per year
Inception Date | Track record available | Established September 25, 2026
Currency Hedge | Generally none | Generally none
* FANG+ uses the “iFreeNEXT FANG+ Index” as an example.
Rakuten Tech 12 is a fund that aims to track the Solactive US Large-Cap Technology 12 Index. It allocates 12% each to the top 7 stocks and 3.2% each to the remaining 5 stocks.
—
1. FANG+ does not “re-select 10 stocks every time”
This is the most important point.
Regarding FANG+,
“Selecting 10 stocks from US tech companies every time”
some people might think this is the case.
However, the current FANG+ has distinct characteristics.
That is,
the rule of including the 6 FAANMG stocks in principle.
FAANMG refers to
the following 6 companies:
– Meta
– Amazon
– Apple
– Netflix
– Microsoft
– Alphabet
According to Daiwa Asset Management, these 6 stocks are fixed in principle.
This is the rule.
And the remaining 4 stocks are selected using indicators such as market capitalization and sales.
In other words, FANG+ has
6 stocks + 4 stocks
a structure of
—
② However, the “6 stocks are not permanently fixed”
This also requires attention.
Even if it is called “fixed”,
it does not mean
that you will hold the 6 companies forever no matter what happens.
Even for the six FAANMG stocks, if there are significant changes in sector classification or country of incorporation, exclusions or replacements may occur.
Therefore, to be precise,
«The six FAANMG stocks are fixed in principle, and the remaining four stocks are reviewed periodically»
is the mechanism.
This “six-stock fixed principle” is a major feature of FANG+.
—
3. The remaining four stocks are subject to replacement
The remaining four stocks in FANG+ are not necessarily the same forever.
They are ranked using metrics such as market capitalization and sales, and replacements are made according to specific conditions.
The review is
March, June, September, and December
four times a year.
In other words, FANG+ is
“not just about holding onto established large-cap tech companies.”
It is more than that.
It includes
“a mechanism to incorporate future growth companies”
built into it.
—
4. On the other hand, what about Rakuten Tech 12?
Rakuten Tech 12 has a different approach.
It is based on the ‘Solactive United States Technology 100 Index,’ which is composed of U.S. companies listed on the NASDAQ market.
From that index, it extracts technology-related companies,
and selects the top 12 companies
by market capitalization.
In other words,
FANG+
→ 6 FAANMG stocks + 4 selected stocks
Rakuten Tech 12
→ Top 12 large-cap technology companies by market capitalization
That is the difference.
—
5. An even bigger difference is the “weighting ratio”
It is not just about how the stocks are selected.
The way the money is allocated is also quite different.
FANG+
FANG+ is
an equal-weighted type that holds
10 stocks at approximately 10% each.
For example,
Assuming you invest 100 million yen in the index,
that is about 10 million yen per stock.
That is the general idea.
—
Rakuten Tech 12
Rakuten Tech 12 is:
Top 7 stocks = 12% each
Remaining 5 stocks = 3.2% each
respectively.
In other words,
The top 7 stocks alone
account for 84%
.
The remaining 5 stocks
total 16%
.
This is quite distinctive.
—
6. The idea that ‘Rakuten Tech 12 is more diversified because it has 12 stocks’ is not that simple
This is a point where beginners often get confused.
FANG+ consists of 10 stocks.
Rakuten Tech 12 consists of 12 stocks.
Based on the numbers alone,
“12 stocks are more diversified”
is what I think.
However, it is different when you look at the actual weighting.
FANG+
Approximately 10% × 10 stocks
Rakuten Tech 12
12% × 7 stocks + 3.2% × 5 stocks
is.
In Rakuten Tech 12,
7 stocks account for 84%
of the total.
Therefore,
you cannot judge the degree of diversification based solely on the number of stocks.
—
⑦ FANG+ is interesting precisely because it is equal-weighted
The equal weighting of FANG+ has distinct characteristics.
For example, if a single stock surges and its weighting increases, it is returned to approximately 10% through periodic rebalancing.
Conversely, for stocks that have fallen significantly, their ratio decreases, so they will be bought more during rebalancing.
In other words,
selling some of the stocks that have risen and buying stocks that have fallen
is the rebalancing that occurs.
This is one of the characteristics of FANG+.
—
⑧ Rakuten Tech 12 ‘holds a heavy weight in large-cap stocks’
Rakuten Tech 12 has a different approach.
Focusing on top technology companies by market capitalization,
the top 7 stocks are each weighted at 12%
and hold them heavily.
In other words,
It is structured to ‘want to hold mainly the largest companies among US tech’.
that is the structure.
On the other hand, the remaining 5 stocks are 3.2% each.
Therefore, it is not an index that expects the same amount from all 12 stocks.
—
9. There is also a difference in costs
Let’s also compare the costs.
The representative investment trust for FANG+,
iFreeNEXT FANG+ Index
has a trust fee of 0.7755% per year.
On the other hand,
Rakuten Tech 12
is 0.462% per year.
Rakuten Tech 12 is lower cost.
By simple calculation,
if you hold 1 million yen for one year,
FANG+
→ approx. 7,755 yen
Rakuten Tech 12
→ Approximately 4,620 yen
is the result.
The difference is
approximately 3,135 yen.
For 10 million yen, a simple calculation shows
an annual difference of about 31,350 yen
as the result.
However, actual investment performance is not determined solely by trust fees.
Index price movements, trading costs, and tracking errors also have an impact.
—
⑩ Rakuten Tech 12 has no track record yet
This point is extremely important.
The inception date for Rakuten Tech 12 is
September 25, 2026.
In other words,
it is today.
Therefore, there is no long-term performance history for the fund yet. Even on the official Rakuten Investment Management website, the trend of the net asset value is not displayed because it has not been established yet.
Consequently,
“Rakuten Tech 12 would have been more profitable over the past five years”
such comparisons cannot be made at this time.
Backtesting using historical index data and the actual performance of a fund must be considered separately.
—
⑪ If you had to describe the difference between the two in one phrase
To put it quite simply,
FANG+
is a “10-stock equal-weighted type that keeps 6 stocks fixed in principle and rotates 4 stocks.”
Rakuten Tech 12
is a “concentrated type that selects the top 12 mega-cap tech stocks by market capitalization and holds the top 7 stocks more heavily.”
Even though both are “concentrated investments in US tech,” their design philosophies differ.
Even though both are “concentrated investments in US tech,” their design philosophies differ.
—
12. Both are completely different from All Country
This must not be forgotten either.
Both FANG+ and Rakuten Tech 12 are
highly concentrated investment products.
They do not invest broadly in companies around the world like All Country.
Therefore,
there is a possibility of benefiting when US large-cap tech stocks rise.
On the other hand,
they are not.
If the entire US tech stock market falls significantly, the net asset value may also drop sharply.
In particular, Rakuten Tech 12 is a product with a high concentration in specific stocks, as the top 7 holdings account for 84%. Rakuten Investment Management itself explicitly states the possibility of concentrated investment in specific stocks.
—
⑬ Summary
FANG+ and Rakuten Tech 12.
Both are products that invest heavily in US tech stocks, but their structures are quite different.
FANG+,
fixes 6 FAANMG stocks in principle.
To that,
it periodically rotates 4 stocks.
And,
it holds 10 stocks equally at approximately 10% each.
On the other hand, Rakuten Tech 12
selects the top 12 stocks by market capitalization from ultra-large technology companies.
Furthermore,
it allocates 12% each to the top 7 stocks and 3.2% each to the remaining 5 stocks
.
In short,
FANG+ is an equal-weight type consisting of “6 fixed stocks + 4 rotating stocks”
Rakuten Tech 12 is a top-heavy concentration type of “top 12 ultra-large tech stocks”
When you think about it that way, it becomes much easier to understand.
And Rakuten Tech 12 was just established on September 25, 2026.
There is no actual performance history yet.
Therefore, at this point in time,
the point is not to ask “which one will be more profitable,”
but rather to look at “what kind of US tech concentrated investment structure do I want to have.”
That is the key.
Do you want to hold 10 stocks equally?
Or do you want to hold a heavier concentration in mega-cap tech?
Even though they are both “US tech concentrated investments,” their designs are this different.