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SCJ - ETF AI Analysis

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SCJ

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 NGK Spark Plug and Sojitz, which combine healthy financial performance, bullish price trends, and generally reasonable valuations. These strengths are partly offset by weaker names such as Rohm Co, which faces declining profitability, liquidity issues, and bearish momentum, and by some holdings with financial or cash flow concerns, making the fund somewhat sensitive to company-specific risks within Japan’s small-cap segment.
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)

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 a pure Japan small-cap play, and its story is being written by a mix of industrials, materials, and financials rather than the usual Big Tech giants. Furukawa Electric has been one of the fund’s bright spots, rising steadily and helping to pull returns higher, while Resonac and Rohm have been more of a mixed bag—strong over the past few months but choppy lately. Regional banks like Fukuoka Financial are adding a steady tailwind, but names such as Yaskawa Electric and Kokusai Electric look like they’re catching their breath, slightly dragging on momentum.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Furukawa Electric Co0.97%$2.11M¥2.29T454.90%
73
Outperform
Resonac Holdings Corporation0.94%$2.05M¥1.94T234.14%
72
Outperform
Mitsui Kinzoku Co0.83%$1.81M¥1.76T440.34%
69
Neutral
Sojitz0.66%$1.45M¥1.22T85.16%
76
Outperform
Shizuoka Financial Group, Inc.0.61%$1.34M¥1.51T72.64%
73
Outperform
NGK SPARK PLUG CO0.54%$1.19M¥1.49T59.44%
79
Outperform
Rohm Co0.53%$1.17M¥1.34T107.66%
46
Neutral
Mebuki Financial Group, Inc.0.53%$1.16M¥1.13T82.95%
69
Neutral
Fukuoka Financial Group0.52%$1.14M¥1.24T58.15%
68
Neutral
Meiji Holdings Co0.52%$1.13M¥1.08T16.66%
74
Outperform

SCJ Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
99.89
Negative
100DMA
95.75
Positive
200DMA
91.42
Positive
Market Momentum
MACD
-0.85
Negative
RSI
50.72
Neutral
STOCH
78.15
Neutral
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 97.05, equal to the 50-day MA of 99.89, and equal to the 200-day MA of 91.42, indicating a neutral trend. The MACD of -0.85 indicates Negative momentum. The RSI at 50.72 is Neutral, neither overbought nor oversold. The STOCH value of 78.15 is Neutral, 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
$213.65M0.50%
66
Neutral
$395.42M0.58%
65
Neutral
$257.33M0.58%
66
Neutral
$226.53M0.80%
69
Neutral
$137.13M0.09%
68
Neutral
$132.86M0.48%
70
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SCJ
iShares MSCI Japan Small-Cap ETF
98.32
29.95
43.81%
DFJ
WisdomTree Japan SmallCap Dividend Fund
OPPJ
WisdomTree Japan Opportunities Fund
FJP
First Trust Japan AlphaDEX Fund
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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