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SCJ - ETF AI Analysis

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SCJ

iShares MSCI Japan Small-Cap ETF (SCJ)

Rating:65Neutral
Price Target:
SCJ, the iShares MSCI Japan Small-Cap ETF, earns a solid overall rating driven by several strong holdings like NGK SPARK PLUG and Sojitz, which combine healthy financial performance, bullish price trends, and reasonable valuations. These strengths are partly offset by weaker names such as Rohm Co, which faces financial and technical challenges, and by some holdings that show signs of potential overvaluation, making sector and stock-specific risks an important consideration for investors.
Positive Factors
Broad Japan Small-Cap Exposure
The fund gives investors access to a wide range of smaller Japanese companies, which can offer growth potential that differs from large, well-known stocks.
Strong Recent Performance
The ETF has shown strong gains so far this year and in recent months, indicating positive momentum in its underlying holdings.
Well-Spread Sector Mix
Holdings are spread across many sectors such as industrials, consumer cyclical, technology, and financials, which helps reduce the impact of weakness in any single industry.
Negative Factors
High Japan Concentration
With almost all assets invested in Japan, the fund is heavily exposed to the Japanese economy and currency, offering little geographic diversification.
Moderate Expense Ratio
The fund’s fee is not especially low for an index ETF, which slightly reduces the net return investors keep over time.
Cyclical Sector Tilt
Large weights in economically sensitive areas like industrials and consumer cyclical mean the fund may be more affected by economic slowdowns.

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 are often in earlier growth stages. It spreads your money across many sectors in Japan, including industrials, technology, and consumer companies. Well-known names in the fund include Yaskawa Electric and Rohm Co. Someone might invest in SCJ to add international diversification and potential growth from up-and-coming Japanese businesses. A key risk is that small-company stocks in one country can be more volatile and can go up and down sharply with changes in Japan’s economy and stock market.
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 leans into Japan’s industrial and tech backbone, with names like Furukawa Electric and Resonac helping to pull the fund higher as their momentum stays firmly in the “rising” camp. Kokusai Electric and Yaskawa Electric add a semiconductor and factory-automation flavor, also trending well but with hints of overheating that could cool returns. On the softer side, Rohm has been lagging, acting as a bit of a speed bump. Rounding things out, regional banks such as Shizuoka and Mebuki are steady contributors, underscoring SCJ’s all-Japan, small-cap growth tilt.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Furukawa Electric Co1.45%$3.62M¥3.16T735.00%
73
Outperform
Resonac Holdings Corporation1.40%$3.50M¥2.90T454.70%
72
Outperform
Mitsui Kinzoku Co1.36%$3.41M¥2.86T468.34%
69
Neutral
Yaskawa Electric0.71%$1.77M¥1.66T72.73%
70
Outperform
Kokusai Electric Corporation0.69%$1.73M¥1.75T156.29%
66
Neutral
Rohm Co0.63%$1.58M¥1.56T112.52%
46
Neutral
NGK Insulators0.60%$1.50M¥1.50T220.74%
73
Outperform
SUMCO Corporation0.60%$1.49M¥1.25T267.39%
55
Neutral
NGK SPARK PLUG CO0.59%$1.48M¥1.72T40.76%
79
Outperform
Shizuoka Financial Group, Inc.0.57%$1.44M¥1.50T76.77%
73
Outperform

SCJ Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
99.68
Positive
100DMA
98.58
Positive
200DMA
93.81
Positive
Market Momentum
MACD
0.74
Negative
RSI
64.26
Neutral
STOCH
88.21
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 101.13, equal to the 50-day MA of 99.68, and equal to the 200-day MA of 93.81, indicating a bullish trend. The MACD of 0.74 indicates Negative momentum. The RSI at 64.26 is Neutral, neither overbought nor oversold. The STOCH value of 88.21 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
$248.77M0.50%
65
Neutral
$633.27M0.45%
70
Outperform
$398.02M0.58%
65
Neutral
$301.34M0.58%
68
Neutral
$256.49M0.80%
69
Neutral
$151.67M0.09%
71
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SCJ
iShares MSCI Japan Small-Cap ETF
104.74
26.72
34.25%
DBJP
Xtrackers MSCI Japan Hedged Equity ETF
DFJ
WisdomTree Japan SmallCap Dividend Fund
OPPJ
WisdomTree Japan Opportunities Fund
FJP
First Trust Japan AlphaDEX Fund
FLJH
Franklin FTSE Japan Hedged 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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