RAYJ - ETF AI Analysis

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Rayliant SMDAM Japan Equity ETF (RAYJ)

Rating:68Neutral

Price Target:―

RAYJ, the Rayliant SMDAM Japan Equity ETF, has a solid overall rating driven mainly by strong Japanese blue-chip holdings like Toyota, Hitachi, and Mitsubishi UFJ Financial Group, which show robust financial health, positive earnings outlooks, and supportive technical trends. The fund also benefits from companies such as Toyota Tsusho and Mitsui Fudosan with strong momentum and reasonable valuations, though some holdings like Fujikura and FOOD & LIFE COMPANIES face risks from high valuations, leverage, or overbought signals. The main risk factor is that many top positions share similar valuation concerns and overbought technical signs, which could increase volatility if market sentiment toward Japanese equities weakens.

Positive Factors

Strong Leading Holdings

Several of the largest positions, including major Japanese financial, industrial, and technology companies, have shown strong year-to-date performance, helping support the ETF’s overall returns.

Broad Sector Spread Within Japan

The fund is spread across multiple sectors such as consumer cyclical, industrials, technology, and financials, which helps reduce the impact if any one industry weakens.

Positive Recent Performance Trend

The ETF has delivered steady gains over the year-to-date, three-month, and one-month periods, indicating recent positive momentum in its strategy.

Negative Factors

High Country Concentration in Japan

With almost all assets invested in Japanese companies, the fund is heavily exposed to the economic and market conditions of a single country.

Relatively High Expense Ratio

The ETF charges a higher fee than many broad-market index funds, which can gradually reduce net returns for long-term investors.

Meaningful Weight in Cyclical Sectors

Large allocations to consumer cyclical and industrial stocks may make the fund more sensitive to economic slowdowns and changes in business cycles.

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

AUM22.68M

RegionAsia-Pacific

Expense Ratio0.72%

Beta0.95

IssuerRayliant

Inception DateApr 04, 2024

Dividend Yield1.55%

Asset ClassEquity

Index TrackedNo Underlying Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume4,345

30 Day Avg. Volume6,501

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

44.22

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering31

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

RAYJ Summary

The Rayliant SMDAM Japan Equity ETF (RAYJ) invests in a wide range of Japanese companies instead of tracking a specific index. It mixes smaller, fast-growing firms with larger, more established names across many sectors, including consumer, industrial, and technology businesses. Well-known holdings include Toyota Motor and Mitsubishi UFJ Financial Group. Someone might invest in this ETF to get broad, one-stop exposure to Japan’s stock market and potential long-term growth. A key risk is that it is heavily focused on Japan, so its value can rise or fall with the Japanese economy and 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 industrial and consumer engines, and that’s where most of the action is. Kawasaki Heavy Industries and Resonac have been on a tear lately, giving the fund a powerful lift, with Fujikura and Toyota Tsusho also pulling their weight. Big names like Toyota and Mitsubishi UFJ are rising more steadily, adding stability rather than fireworks. On the flip side, Mitsui Fudosan and Asics have been losing a bit of steam, modestly tugging on returns. With all holdings in Japan, this ETF is a pure play on the country’s industrial and consumer recovery story.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
8306	Mitsubishi UFJ Financial Group	6.09%	$1.46M	¥29.80T	26.90%	76 Outperform
4004	Resonac Holdings Corporation	5.36%	$1.28M	¥1.93T	191.73%	72 Outperform
5803	Fujikura Ltd	5.14%	$1.23M	¥6.23T	277.19%	63 Neutral
7203	Toyota Motor	4.85%	$1.16M	¥44.22T	19.51%	80 Outperform
3563	FOOD & LIFE COMPANIES	4.38%	$1.05M	¥1.02T	0.00%	67 Neutral
8015	Toyota Tsusho	4.07%	$972.89K	¥6.27T	97.29%	77 Outperform
7012	Kawasaki Heavy Industries	3.88%	$929.00K	¥2.63T	86.52%	70 Outperform
7936	Asics	3.75%	$898.57K	¥3.05T	27.68%	61 Neutral
8801	Mitsui Fudosan Co	3.75%	$898.38K	¥5.36T	38.44%	78 Outperform
9983	FAST RETAILING CO	3.75%	$897.62K	¥19.88T	31.75%	74 Outperform

RAYJ Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

35.78

Positive

100DMA

34.58

Positive

200DMA

33.11

Positive

Market Momentum

MACD

0.15

Positive

RSI

46.79

Neutral

STOCH

17.32

Positive

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 37.69, equal to the 50-day MA of 35.78, and equal to the 200-day MA of 33.11, indicating a neutral trend. The MACD of 0.15 indicates Positive momentum. The RSI at 46.79 is Neutral, neither overbought nor oversold. The STOCH value of 17.32 is Positive, 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
RAYJ	―	―	$22.68M	0.72%	68 Neutral
NBJP	―	―	$120.06M	0.50%	69 Neutral
JPY	―	―	$72.63M	0.60%	70 Outperform
JAPN	―	―	$24.25M	0.85%	62 Neutral
MJSC	―	―	$21.59M	0.85%	68 Neutral
JPAN	―	―	$7.64M	0.79%	69 Neutral

Performance Comparison

RAYJ

Rayliant SMDAM Japan Equity ETF

36.35

10.30

39.54%

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.

Disclaimer

This 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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