SCJ - ETF AI Analysis

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iShares MSCI Japan Small-Cap ETF (SCJ)

Rating:66Neutral

Price Target:―

SCJ, the iShares MSCI Japan Small-Cap ETF, earns a solid overall rating thanks to several strong holdings like Sojitz and Furukawa Electric, which combine healthy financial performance with positive price trends and generally reasonable valuations. These strengths are partly offset by holdings facing issues such as high leverage, declining revenue growth, or signs of potential overvaluation and overbought conditions, which add risk. The main risk factor is the fund’s focus on smaller Japanese companies, where some stocks show weaker cash flow, efficiency concerns, or stretched valuations that could lead to short-term pullbacks.

Positive Factors

Broad Small-Cap Japan Exposure

The fund offers focused access to Japanese small-cap companies, giving investors a way to tap into a different part of Japan’s market than large, well-known stocks.

Diversified Across Many Sectors

Holdings are spread across industries like industrials, consumer cyclical, technology, real estate, and financials, which helps reduce the impact of weakness in any single sector.

Several Strong-Performing Top Holdings

Some of the largest positions, such as Resonac Holdings, Mitsui Kinzoku, Kokusai Electric, and Yaskawa Electric, have shown strong year-to-date performance, supporting the ETF’s recent gains.

Negative Factors

High Geographic Concentration in Japan

With almost all assets invested in Japan, the fund is heavily exposed to the Japanese economy and currency, offering little geographic diversification.

Moderately High Expense Ratio

The fund’s expense ratio is on the higher side for an ETF, which means more of the return is used to cover fees instead of going to investors.

Exposure to Some Weak or Flat Holdings

A few top holdings, such as Tokyo Electric Power and others with flat year-to-date results, have not kept pace with stronger names and could drag on overall performance if this continues.

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

AUM246.98M

RegionAsia-Pacific

Expense Ratio0.50%

Beta0.65

IssueriShares

Inception DateDec 20, 2007

Dividend Yield2.92%

Asset ClassEquity

Index TrackedMSCI Japan Small Cap

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume173,405

30 Day Avg. Volume58,321

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 TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

SCJ Summary

The iShares MSCI Japan Small-Cap ETF (SCJ) follows the MSCI Japan Small Cap Index, focusing on smaller Japanese companies that may have more room to grow than large, well-known firms. It holds a wide mix of businesses across many sectors, including names like Tokyo Electric Power Company Holdings and Yaskawa Electric. Investors might consider SCJ to add international diversification and potential growth from Japan’s up-and-coming companies. However, small-cap stocks can be more volatile, so the ETF’s price can move up and down more sharply than funds focused on larger, more established companies.

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 industrial and tech backbone, with names like IBIDEN, Resonac, and Yaskawa Electric helping to power the fund as their momentum has been rising in recent months. Furukawa Electric and trading house Sojitz add more cyclical punch, also trending positively and giving the portfolio a pro-growth tilt. On the softer side, financials such as Shizuoka and Fukuoka Financial Group look steadier but a bit mixed, keeping returns in check. With all holdings in Japan and a tilt toward industrials and small-cap innovators, this ETF is a focused bet on the country’s domestic growth engines.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
4004	Resonac Holdings Corporation	1.00%	$2.48M	¥1.96T	194.97%	72 Outperform
5801	Furukawa Electric Co	0.87%	$2.15M	¥1.93T	385.57%	73 Outperform
5706	Mitsui Kinzoku Co	0.87%	$2.15M	¥1.76T	425.11%	69 Neutral
2768	Sojitz	0.63%	$1.57M	¥1.18T	76.54%	76 Outperform
6963	Rohm Co	0.59%	$1.46M	¥1.31T	100.42%	46 Neutral
5831	Shizuoka Financial Group, Inc.	0.58%	$1.44M	¥1.47T	79.74%	73 Outperform
6525	Kokusai Electric Corporation	0.57%	$1.42M	¥1.39T	98.94%	66 Neutral
5334	NGK SPARK PLUG CO	0.54%	$1.33M	¥1.53T	63.12%	79 Outperform
2875	Toyo Suisan Kaisha	0.53%	$1.30M	¥1.18T	21.17%	76 Outperform
6506	Yaskawa Electric	0.52%	$1.28M	¥1.18T	6.20%	70 Outperform

SCJ Technical Analysis

Technical Analysis Sentiment

Negative

Last Price―

Price Trends

50DMA

99.14

Negative

100DMA

94.57

Positive

200DMA

90.14

Positive

Market Momentum

MACD

-0.19

Positive

RSI

40.40

Neutral

STOCH

26.10

Neutral

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For SCJ, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 103.54, equal to the 50-day MA of 99.14, and equal to the 200-day MA of 90.14, indicating a neutral trend. The MACD of -0.19 indicates Positive momentum. The RSI at 40.40 is Neutral, neither overbought nor oversold. The STOCH value of 26.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SCJ.

SCJ Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
SCJ	―	―	$246.98M	0.50%	66 Neutral
DBJP	―	―	$598.24M	0.45%	68 Neutral
DFJ	―	―	$439.29M	0.58%	65 Neutral
FJP	―	―	$241.97M	0.80%	69 Neutral
OPPJ	―	―	$227.45M	0.58%	69 Neutral
JPXN	―	―	$208.68M	0.48%	70 Outperform

Performance Comparison

SCJ

iShares MSCI Japan Small-Cap ETF

98.65

23.79

31.78%

DBJP

Xtrackers MSCI Japan Hedged Equity ETF

―

DFJ

WisdomTree Japan SmallCap Dividend Fund

―

FJP

First Trust Japan AlphaDEX Fund

―

OPPJ

WisdomTree Japan Opportunities Fund

―

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.

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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