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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 an overall rating that suggests it is a generally solid but not top-tier option, supported by several strong Japanese small-cap dividend payers. Standout holdings like JP:7327 and Hazama Ando (JP:1719) contribute positively through strong financial performance, attractive valuations, and supportive technical trends, while names such as Mitsubishi Materials (JP:5711) and Chugin Financial Group (JP:5832) add some caution due to valuation concerns, revenue and cash flow volatility, and weaker technical signals. The main risk factor is the fund’s focus on Japanese small-cap stocks, which can mean higher volatility and sensitivity to local economic conditions.
Positive Factors
Strong Recent Performance
The ETF has shown solid gains over the past month, three months, and year-to-date, indicating positive recent momentum.
Improving Top Holdings
Several of the largest positions have delivered strong year-to-date gains, helping support the fund’s overall returns.
Broad Sector Diversification Within Japan
Holdings spread across many sectors such as industrials, consumer cyclical, materials, technology, and financials help reduce the impact of weakness in any single industry.
Negative Factors
High Japan Concentration
The fund is heavily focused on Japanese companies, so its performance is closely 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 an index-style fund, which can eat into long-term returns compared with lower-cost alternatives.
Small-Cap and Dividend Focus Risks
Targeting smaller Japanese dividend-paying companies can mean higher volatility and sensitivity to economic slowdowns than large, more established firms.

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

DFJ Summary

DFJ is an ETF that follows the WisdomTree Japan SmallCap Dividend Index, focusing on smaller Japanese companies that pay dividends. It holds a wide mix of industries, including industrials, consumer companies, and technology. Some of its better-known holdings include NSK Ltd. and Nippon Shokubai. Investors might consider DFJ if they want geographic diversification outside the U.S. and a mix of potential growth from small companies plus 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’s story is all about Japan’s smaller, dividend-paying workhorses rather than flashy tech giants. Mitsubishi Materials has been a key engine, rising steadily this year and giving the fund a lift, while industrial names like NSK and Nippon Shokubai are also pulling their weight with solid, if sometimes overheager, momentum. Regional banks such as Daishi Hokuetsu and Chugin are more mixed, recently losing a bit of steam after earlier gains. Overall, the ETF is firmly Japan-focused and leans heavily on industrials and financials to drive returns.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Daishi Hokuetsu Financial Group, Inc.0.71%$2.81M¥543.64B91.84%
79
Outperform
Chugin Financial Group,Inc.0.65%$2.57M¥563.80B89.10%
63
Neutral
NSK Ltd.0.60%$2.37M¥557.76B80.22%
66
Neutral
Exedy Corporation0.59%$2.33M¥208.53B24.00%
74
Outperform
Hazama Ando0.57%$2.24M¥359.36B30.06%
79
Outperform
Nippon Shokubai Co., Ltd.0.55%$2.18M¥343.99B33.96%
71
Outperform
0.53%$2.10M
SKY Perfect JSAT Holdings0.53%$2.09M¥854.32B126.21%
73
Outperform
INFRONEER Holdings Inc.0.52%$2.07M¥558.27B89.36%
76
Outperform
Mitsubishi Materials0.52%$2.06M¥677.53B80.46%
66
Neutral

DFJ Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
104.80
Negative
100DMA
99.86
Positive
200DMA
94.63
Positive
Market Momentum
MACD
-1.18
Negative
RSI
53.54
Neutral
STOCH
64.32
Neutral
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 101.58, equal to the 50-day MA of 104.80, and equal to the 200-day MA of 94.63, indicating a neutral trend. The MACD of -1.18 indicates Negative momentum. The RSI at 53.54 is Neutral, neither overbought nor oversold. The STOCH value of 64.32 is Neutral, 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
$389.35M0.58%
65
Neutral
$257.33M0.58%
66
Neutral
$226.53M0.80%
69
Neutral
$208.94M0.50%
66
Neutral
$137.13M0.09%
68
Neutral
$132.86M0.48%
70
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DFJ
WisdomTree Japan SmallCap Dividend Fund
103.94
29.30
39.26%
OPPJ
WisdomTree Japan Opportunities Fund
FJP
First Trust Japan AlphaDEX Fund
SCJ
iShares MSCI Japan Small-Cap ETF
FLJH
Franklin FTSE Japan Hedged 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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