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DFJ - ETF AI Analysis

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DFJ

WisdomTree Japan SmallCap Dividend Fund (DFJ)

Rating:65Neutral
Price Target:
DFJ, the WisdomTree Japan SmallCap Dividend Fund, has a solid overall rating driven by several strong Japanese small-cap dividend payers like Citizen Watch, Yamaguchi Financial Group, and Nichias, which show healthy financial performance, attractive dividends, and bullish stock trends. These strengths are partly offset by holdings such as Chugin Financial Group and NSK, where revenue and cash flow volatility, weaker or overbought technical signals, and signs of possible overvaluation introduce some risk. The main risk factor is the fund’s concentration in Japanese small-cap stocks, which can be more volatile and sensitive to local economic conditions.
Positive Factors
Strong Year-to-Date Results
The fund has delivered strong year-to-date performance, suggesting its strategy has been working well in the current market.
Solid Performance from Key Holdings
Several of the largest positions, including financial and industrial names, have shown strong gains, helping drive the ETF’s overall returns.
Broad Sector Diversification Within Japan
Holdings spread across many sectors such as industrials, materials, technology, and consumer stocks help reduce the impact of weakness in any single industry.
Negative Factors
High Japan Concentration
With the vast majority of assets invested in Japanese companies, the fund is heavily exposed to the Japanese economy and currency.
Relatively High Expense Ratio
The fund’s expense ratio is on the higher side for an ETF, which means more of the returns are used to cover fees instead of going to investors.
Mixed Short-Term Performance
Recent one-month results have been slightly negative and at least one top holding has shown weak performance, which could signal near-term volatility.

DFJ vs. SPDR S&P 500 ETF (SPY)

DFJ Summary

The WisdomTree Japan SmallCap Dividend Fund (DFJ) is an ETF that tracks the WisdomTree Japan SmallCap Dividend Index. It focuses on smaller Japanese companies that pay regular dividends, giving investors a mix of potential growth and income. The fund spreads money across many sectors in Japan, including industrials, materials, and technology. Well-known names in the fund include Citizen Watch and NSK Ltd. Someone might invest in DFJ to diversify outside the U.S. and gain exposure to Japan’s smaller, growing firms. A key risk is that small-cap stocks in one country can be more volatile and can go up and down sharply with the market.
How much will it cost me?The ETF DFJ has an expense ratio of 0.58%, which means you’ll pay $5.80 per year for every $1,000 invested. This is higher than average because it is actively managed to focus on small-cap dividend-paying stocks in Japan, requiring more research and oversight. It offers a unique investment opportunity but comes with slightly higher costs due to its specialized strategy.
What would affect this ETF?The DFJ ETF, which focuses on Japanese small-cap dividend-paying companies, could benefit from Japan's economic growth and increased global interest in Asia-Pacific markets, particularly if industrial and consumer cyclical sectors perform well. However, it may face challenges from rising interest rates, which can impact dividend-paying stocks, or economic slowdowns in Japan that could affect small-cap companies more significantly than larger firms.

DFJ Top 10 Holdings

DFJ’s story is all about Japan’s smaller, dividend-paying workhorses, with a clear tilt toward regional banks and industrial names. Financial groups like Daishi Hokuetsu and Chugin are rising and doing much of the heavy lifting, while Yamaguchi Financial adds steady, income-focused ballast. On the industrial side, INFRONEER is climbing, but construction player Hazama Ando has been lagging and occasionally trips up the fund’s momentum. Consumer and auto-linked names such as Citizen Watch and Exedy are more mixed, keeping this Japan-only small-cap portfolio diversified but not immune to bumps.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Daishi Hokuetsu Financial Group, Inc.0.76%$3.02M¥652.58B78.93%
79
Outperform
Chugin Financial Group,Inc.0.70%$2.76M¥621.25B60.55%
63
Neutral
Citizen Watch Co0.61%$2.41M¥583.46B159.81%
82
Outperform
INFRONEER Holdings Inc.0.56%$2.23M¥647.74B94.28%
76
Outperform
Exedy Corporation0.56%$2.22M¥218.39B38.98%
74
Outperform
Yamaguchi Financial Group0.56%$2.20M¥601.18B0.71%
77
Outperform
Nippon Shokubai Co., Ltd.0.55%$2.19M¥364.64B47.29%
71
Outperform
NSK Ltd.0.55%$2.16M¥573.65B55.60%
66
Neutral
Hazama Ando0.52%$2.04M¥334.22B1.55%
79
Outperform
0.52%$2.04M

DFJ Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
106.44
Positive
100DMA
104.78
Positive
200DMA
101.23
Positive
Market Momentum
MACD
1.58
Negative
RSI
63.06
Neutral
STOCH
89.90
Negative
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For DFJ, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 107.79, equal to the 50-day MA of 106.44, and equal to the 200-day MA of 101.23, indicating a bullish trend. The MACD of 1.58 indicates Negative momentum. The RSI at 63.06 is Neutral, neither overbought nor oversold. The STOCH value of 89.90 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DFJ.

DFJ Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$397.59M0.58%
65
Neutral
$699.49M0.45%
70
Neutral
$283.43M0.58%
69
Neutral
$262.79M0.50%
65
Neutral
$258.84M0.80%
69
Neutral
$200.52M0.09%
70
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DFJ
WisdomTree Japan SmallCap Dividend Fund
111.86
22.22
24.79%
DBJP
Xtrackers MSCI Japan Hedged Equity ETF
OPPJ
WisdomTree Japan Opportunities Fund
SCJ
iShares MSCI Japan Small-Cap ETF
FJP
First Trust Japan AlphaDEX Fund
FLJH
Franklin FTSE Japan Hedged ETF
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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