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RAYJ - ETF AI Analysis

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RAYJ

Rayliant SMDAM Japan Equity ETF (RAYJ)

Rating:67Neutral
Price Target:
RAYJ, the Rayliant SMDAM Japan Equity ETF, has a solid overall rating driven mainly by strong Japanese blue-chip holdings like Toyota, Toyota Tsusho, Hitachi, and Mitsubishi UFJ Financial Group, which all show robust financial health, positive trends, and generally reasonable valuations. Some holdings such as Fujikura, Asics, and FAST RETAILING face issues like potential overvaluation, bearish or overbought technical signals, and low dividend yields, which slightly weigh on the fund’s rating. The main risk factor is valuation: several key stocks appear expensive or overbought, which could increase the chance of price pullbacks even if their businesses remain strong.
Positive Factors
Strong Recent Performance
The ETF has shown strong gains so far this year and in recent months, indicating positive momentum.
Leading Holdings Performing Well
Several of the largest positions, such as Fujikura, Resonac Holdings, and FOOD & LIFE COMPANIES, have delivered strong returns, helping drive the fund’s overall results.
Broad Sector Spread Within Japan
Holdings across multiple sectors like industrials, consumer cyclical, technology, financials, and health care help reduce the impact of weakness in any single industry.
Negative Factors
High Expense Ratio
The fund charges a relatively high fee, which can eat into long-term returns compared with lower-cost ETFs.
Single-Country Concentration
With almost all assets invested in Japan, the ETF is heavily exposed to the Japanese economy and currency, offering little geographic diversification.
Sector Concentration in Industrials and Consumer Cyclical
A large portion of the portfolio is tied up in industrial and consumer cyclical companies, which can make the fund more sensitive to economic slowdowns and shifts in consumer spending.

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

RAYJ Summary

The Rayliant SMDAM Japan Equity ETF (RAYJ) is a fund that invests in a wide range of Japanese stocks, aiming to cover most of Japan’s stock market rather than tracking a specific index. It mixes smaller, faster-growing companies with larger, more established names. Well-known holdings include Toyota Motor and Mitsubishi UFJ Financial Group, along with companies in industries like industrials, consumer goods, and technology. Someone might invest in this ETF to gain diversified exposure to Japan’s economy and potential long-term growth. A key risk is that it is concentrated in one country, so it can rise or fall with the Japanese stock market.
How much will it cost me?The Rayliant SMDAM Japan Equity ETF (Ticker: RAYJ) has an expense ratio of 0.72%, which means you’ll pay $7.20 per year for every $1,000 invested. This is higher than average because the fund is actively managed, focusing on a specialized approach to Japan's equity markets rather than tracking a broad index.
What would affect this ETF?The Rayliant SMDAM Japan Equity ETF could benefit from Japan's economic recovery, increased consumer spending, and advancements in technology, which align with its significant exposure to Consumer Cyclical, Industrials, and Technology sectors. However, potential risks include global economic slowdowns, currency fluctuations affecting Japan's export-driven economy, and regulatory changes that could impact key industries like automotive and financial services. Investors should also consider how interest rate changes in Japan might influence corporate growth and market performance.

RAYJ Top 10 Holdings

RAYJ is leaning hard into Japan’s real economy, with industrials, consumer cyclicals, and tech doing most of the heavy lifting. Fujikura and Resonac are rising standouts, helping power returns alongside a strong run from FOOD & LIFE COMPANIES, which has been a real engine lately. On the consumer side, FAST RETAILING and Asics are generally supportive, even if valuations look a bit rich. The main drag comes from Toyota, which has been losing steam, leaving this all-Japan portfolio driven more by smaller, nimbler names than by its auto giant.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Fujikura Ltd6.51%$1.59M¥10.60T510.92%
63
Neutral
Resonac Holdings Corporation5.85%$1.43M¥2.49T386.44%
72
Outperform
Mitsubishi UFJ Financial Group5.51%$1.35M¥30.81T41.01%
76
Outperform
FOOD & LIFE COMPANIES4.19%$1.02M¥1.06T147.46%
67
Neutral
Toyota Motor4.17%$1.02M¥39.97T15.41%
80
Outperform
Chugai Pharmaceutical Co4.10%$1.00M¥14.54T-9.82%
74
Outperform
Kioxia Holdings Corporation3.99%$976.64K¥18.88T1749.20%
63
Neutral
Hitachi,Ltd.3.86%$944.37K¥23.65T22.92%
77
Outperform
Toyota Tsusho3.84%$940.50K¥6.49T124.68%
77
Outperform
FAST RETAILING CO3.84%$939.83K¥22.03T34.96%
74
Outperform

RAYJ Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
36.70
Positive
100DMA
35.48
Positive
200DMA
34.09
Positive
Market Momentum
MACD
0.58
Negative
RSI
56.54
Neutral
STOCH
46.95
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For RAYJ, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 36.91, equal to the 50-day MA of 36.70, and equal to the 200-day MA of 34.09, indicating a bullish trend. The MACD of 0.58 indicates Negative momentum. The RSI at 56.54 is Neutral, neither overbought nor oversold. The STOCH value of 46.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RAYJ.

RAYJ Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$24.52M0.72%
67
Neutral
$126.11M0.50%
69
Neutral
$73.21M0.60%
70
Outperform
$23.86M0.85%
61
Neutral
$21.46M0.85%
67
Neutral
$7.69M0.79%
69
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
RAYJ
Rayliant SMDAM Japan Equity ETF
37.81
10.25
37.19%
NBJP
Neuberger Berman Japan Equity ETF
JPY
Lazard Japanese Equity ETF
JAPN
Horizon Kinetics Japan Owner Operator ETF
MJSC
MUFG Japan Small Cap Active ETF
JPAN
Matthews Japan Active 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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