tiprankstipranks
Advertisement

SCJ - ETF AI Analysis

Compare

Top Page

SCJ

iShares MSCI Japan Small-Cap ETF (SCJ)

Rating:65Neutral
Price Target:
SCJ, the iShares MSCI Japan Small-Cap ETF, has a solid overall rating supported by strong holdings like NGK SPARK PLUG CO and NGK Insulators, which show healthy financial performance, reasonable valuations, and positive price momentum. However, weaker names such as Rohm Co and the holding with rising leverage and projected losses weigh on the fund, and there are notable risks from companies with high leverage, overvaluation concerns, and overbought technical signals within this concentrated small-cap Japan portfolio.
Positive Factors
Strong Recent Performance
The ETF has shown strong gains so far this year and solid results over the last three months, indicating positive momentum in Japanese small-cap stocks.
Growing and Healthy Asset Base
The fund manages a sizable pool of assets, suggesting steady investor interest and enough scale for efficient trading.
Broad Sector Diversification Within Japan
Holdings are spread across many industries, including industrials, consumer sectors, technology, and financials, which helps reduce the impact of weakness in any single sector.
Negative Factors
Single-Country Concentration
With almost all assets in Japan and very little outside exposure, investors are heavily exposed to the Japanese economy and currency.
Higher Expense Ratio for a Passive ETF
The fund’s fee is on the higher side compared with many index ETFs, which can slightly reduce long-term returns.
Small-Cap Volatility Risk
Because the ETF focuses on smaller companies, its holdings can be more sensitive to market swings and economic downturns than large, established firms.

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

SCJ Summary

The iShares MSCI Japan Small-Cap ETF (SCJ) is a fund that follows the MSCI Japan Small Cap Index, focusing on smaller Japanese companies across many industries like industrials, technology, and consumer goods. It holds firms such as Kokusai Electric Corporation and Taiyo Yuden Co., Ltd., giving investors broad exposure to Japan’s up-and-coming businesses. Someone might invest in SCJ to seek growth and diversify their portfolio with international stocks beyond the U.S. market. However, because it invests in smaller companies in one country, its price can be more volatile and can go up and down sharply with market conditions.
How much will it cost me?The iShares MSCI Japan Small-Cap ETF (SCJ) has an expense ratio of 0.50%, meaning you’ll pay $5 per year for every $1,000 invested. This is higher than average for ETFs because it is passively managed but focuses on a niche international market, which can involve higher costs.
What would affect this ETF?The SCJ ETF, focused on Japan's small-cap companies, could benefit from Japan's economic recovery and innovation in sectors like technology and industrials, which are heavily weighted in the fund. However, challenges such as global economic uncertainty, changes in interest rates, or regulatory shifts in Japan could negatively impact small-cap performance. Additionally, the ETF's reliance on Japan's domestic market makes it vulnerable to local economic conditions.

SCJ Top 10 Holdings

SCJ is leaning into Japan’s small-cap growth story, with a noticeable tilt toward industrials, tech hardware, and regional banks. Semiconductor-linked names like Kokusai Electric and SUMCO have been mixed—earlier strength is now losing steam, which can tug on returns. Taiyo Yuden has been a powerful engine over the year but recently looks a bit tired. On the brighter side, NGK Spark Plug and NGK Insulators are providing steady support, while regional lenders such as Shizuoka and Fukuoka Financial Groups are quietly rising. Overall, it’s a Japan-only, small-cap play with a cyclical, tech-heavy flavor.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Kokusai Electric Corporation0.83%$2.15M¥1.94T160.61%
66
Neutral
Rohm Co0.68%$1.77M¥1.82T115.66%
46
Neutral
NGK SPARK PLUG CO0.68%$1.74M¥1.95T77.02%
79
Outperform
Shizuoka Financial Group, Inc.0.62%$1.61M¥1.86T80.48%
73
Outperform
FOOD & LIFE COMPANIES0.62%$1.60M¥1.29T318.36%
67
Neutral
Mebuki Financial Group, Inc.0.58%$1.49M¥1.37T76.68%
69
Neutral
SUMCO Corporation0.57%$1.46M¥1.22T186.29%
55
Neutral
Sojitz0.56%$1.45M¥1.08T28.59%
76
Outperform
NGK Insulators0.56%$1.45M¥1.53T143.89%
73
Outperform
OMRON0.56%$1.44M¥1.31T19.46%
60
Neutral

SCJ Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
105.59
Positive
100DMA
103.05
Positive
200DMA
98.62
Positive
Market Momentum
MACD
1.06
Negative
RSI
62.11
Neutral
STOCH
85.30
Negative
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For SCJ, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 106.13, equal to the 50-day MA of 105.59, and equal to the 200-day MA of 98.62, indicating a bullish trend. The MACD of 1.06 indicates Negative momentum. The RSI at 62.11 is Neutral, neither overbought nor oversold. The STOCH value of 85.30 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SCJ.

SCJ Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$259.26M0.50%
65
Neutral
$699.49M0.45%
70
Neutral
$397.59M0.58%
65
Neutral
$283.43M0.58%
69
Neutral
$258.84M0.80%
69
Neutral
$200.52M0.09%
70
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SCJ
iShares MSCI Japan Small-Cap ETF
109.82
22.32
25.51%
DBJP
Xtrackers MSCI Japan Hedged Equity ETF
DFJ
WisdomTree Japan SmallCap Dividend Fund
OPPJ
WisdomTree Japan Opportunities Fund
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: ―
Table of Contents
Advertisement