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, has a solid overall rating driven by several strong holdings like Sojitz and Toyo Suisan Kaisha, which combine healthy financial performance, attractive or fair valuations, and generally supportive technical trends. These strengths are partly offset by weaker names such as JP:9501, where financial challenges, bearish technical signals, and an unattractive valuation weigh on the fund. The main risk factor is its focus on Japanese small-cap stocks, which can be more volatile and sensitive to shifts in Japan’s economy and market conditions.

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)

AUM208.19M

RegionAsia-Pacific

Expense Ratio0.50%

Beta0.65

IssueriShares

Inception DateDec 20, 2007

Dividend Yield2.73%

Asset ClassEquity

Index TrackedMSCI Japan Small Cap

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume59,287

30 Day Avg. Volume24,230

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 riding a wave of strength from several Japanese small-cap industrial and tech names, with Shimizu, Resonac, Kokusai Electric, Yaskawa Electric, and Mitsui Kinzoku all showing rising momentum and helping pull the fund higher. These winners underscore the ETF’s tilt toward Japan’s industrial backbone and semiconductor-related technology. On the softer side, Tokyo Electric Power has been lagging, acting as a small drag rather than a disaster. Overall, the fund is firmly anchored in Japan, with performance driven more by cyclical and innovation-focused small caps than by defensive sectors.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
4062	IBIDEN CO	0.89%	$1.85M	¥2.22T	318.56%	63 Neutral
1803	Shimizu	0.83%	$1.73M	¥2.35T	79.77%	69 Neutral
4004	Resonac Holdings Corporation	0.83%	$1.73M	¥1.72T	149.13%	72 Outperform
5801	Furukawa Electric Co	0.67%	$1.39M	¥1.51T	82.43%	73 Outperform
5706	Mitsui Kinzoku Co	0.64%	$1.32M	¥1.34T	411.48%	69 Neutral
2768	Sojitz	0.63%	$1.31M	¥1.21T	86.96%	76 Outperform
5831	Shizuoka Financial Group, Inc.	0.60%	$1.25M	¥1.59T	106.79%	73 Outperform
6525	Kokusai Electric Corporation	0.59%	$1.22M	¥1.49T	133.05%	66 Neutral
6506	Yaskawa Electric	0.58%	$1.20M	¥1.42T	27.83%	70 Outperform
8354	Fukuoka Financial Group	0.57%	$1.19M	¥1.36T	42.33%	68 Neutral

SCJ Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

94.50

Positive

100DMA

91.93

Positive

200DMA

87.71

Positive

Market Momentum

MACD

2.50

Negative

RSI

78.78

Negative

STOCH

98.50

Negative

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For SCJ, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 98.08, equal to the 50-day MA of 94.50, and equal to the 200-day MA of 87.71, indicating a bullish trend. The MACD of 2.50 indicates Negative momentum. The RSI at 78.78 is Negative, neither overbought nor oversold. The STOCH value of 98.50 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SCJ.

SCJ Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
SCJ	―	―	$208.19M	0.50%	―
DBJP	―	―	$584.79M	0.45%	―
DFJ	―	―	$390.59M	0.58%	―
FJP	―	―	$238.00M	0.80%	―
OPPJ	―	―	$191.97M	0.58%	―
JPXN	―	―	$146.32M	0.48%	―

Performance Comparison

SCJ

iShares MSCI Japan Small-Cap ETF

105.62

32.32

44.09%

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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