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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, earns a solid overall rating driven by strong holdings like JP:7327 and Hazama Ando, which feature solid financial performance, supportive technical trends, and generally reasonable valuations. Additional contributors such as Exedy Corporation and Yamaguchi Financial Group add to the fund’s appeal through stable finances, bullish momentum, and attractive dividends, though some holdings show overbought signals, valuation concerns, and leverage risks, and the focus on Japanese small-cap stocks means performance is heavily tied to that specific market.
Positive Factors
Strong Recent Performance
The ETF has shown solid gains so far this year and in recent months, indicating positive momentum in its underlying Japanese small-cap dividend stocks.
Broad Sector Diversification
Holdings are spread across many sectors such as industrials, consumer cyclical, technology, materials, and financials, which helps reduce the impact if any one industry struggles.
Strong Top Holdings Contribution
Several of the largest positions, including companies in financials, materials, and communications, have delivered strong year-to-date performance that supports the fund’s overall returns.
Negative Factors
High Japan Concentration
The fund is overwhelmingly invested in Japanese companies, so its performance is heavily tied to the health of Japan’s economy and stock market.
Relatively High Expense Ratio
The ETF’s expense ratio is on the higher side for a passive fund, which means more of the returns are used to cover fees instead of going to investors.
Small-Cap and Cyclical Risk
Its focus on smaller companies and economically sensitive sectors like industrials and consumer cyclical can make the fund more volatile during market downturns.

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

DFJ Summary

The WisdomTree Japan SmallCap Dividend Fund (DFJ) is an ETF that follows the WisdomTree Japan SmallCap Dividend Index, focusing on smaller Japanese companies that pay dividends. It spreads investments across many sectors, including industrials, consumer companies, and technology, and holds names like Mitsubishi Materials and NSK Ltd. Someone might consider this ETF to diversify outside the U.S. and to seek a mix of potential growth from small companies plus regular dividend income. A key risk is that small-cap Japanese stocks can be more volatile and can go up and down sharply with changes in Japan’s economy and stock 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 leans into Japan’s industrial and financial backbone, with names like NSK and Mitsubishi Materials doing much of the heavy lifting as their shares have been steadily rising and adding momentum to the fund. SKY Perfect JSAT has been a standout, sprinting ahead and giving the portfolio an extra boost. On the flip side, Seino Holdings and Nippon Shokubai have been lagging recently, acting as a bit of a brake. Overall, this is a Japan-only, small-cap, dividend-focused mix, not dominated by any single stock but clearly tilted toward cyclical, domestically driven sectors.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Daishi Hokuetsu Financial Group, Inc.0.68%$2.68M¥543.91B86.22%
79
Outperform
NSK Ltd.0.68%$2.66M¥652.35B112.47%
66
Neutral
Chugin Financial Group,Inc.0.65%$2.53M¥526.82B83.95%
63
Neutral
SKY Perfect JSAT Holdings0.63%$2.46M¥1.05T177.78%
73
Outperform
Mitsubishi Materials0.60%$2.34M¥726.65B135.64%
66
Neutral
Exedy Corporation0.60%$2.33M¥219.85B30.64%
74
Outperform
Hazama Ando0.57%$2.21M¥351.70B16.38%
79
Outperform
0.53%$2.05M
Yamaguchi Financial Group0.52%$2.04M¥516.14B6.86%
77
Outperform
INFRONEER Holdings Inc.0.51%$2.00M¥563.10B81.90%
76
Outperform

DFJ Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
103.65
Positive
100DMA
102.96
Positive
200DMA
97.33
Positive
Market Momentum
MACD
0.46
Negative
RSI
60.32
Neutral
STOCH
90.90
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 104.32, equal to the 50-day MA of 103.65, and equal to the 200-day MA of 97.33, indicating a bullish trend. The MACD of 0.46 indicates Negative momentum. The RSI at 60.32 is Neutral, neither overbought nor oversold. The STOCH value of 90.90 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
$398.02M0.58%
65
Neutral
$613.51M0.45%
70
Neutral
$287.25M0.58%
68
Neutral
$256.49M0.80%
69
Neutral
$238.47M0.50%
65
Neutral
$147.64M0.48%
70
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DFJ
WisdomTree Japan SmallCap Dividend Fund
107.26
27.26
34.08%
DBJP
Xtrackers MSCI Japan Hedged Equity ETF
OPPJ
WisdomTree Japan Opportunities Fund
FJP
First Trust Japan AlphaDEX Fund
SCJ
iShares MSCI Japan Small-Cap ETF
JPXN
iShares Japan Large-Cap
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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