iShares MSCI Japan Sm CapSCJ

The iShares MSCI Japan Small-Cap ETF (SCJ) is designed to offer investors exposure to the small-cap segment of the Japanese equity market. As of 2026, the fund holds a diversified portfolio of approximately 300 small-cap Japanese companies, though its top 10 holdings account for a significant portion of its assets under management (AUM). This concentration raises questions about the fund’s true diversification and whether it aligns with investors’ expectations of a small-cap ETF.

SCJ tracks the MSCI Japan Small Cap Index, which includes companies with a market capitalization ranging from approximately $200 million to $4 billion. The fund employs a sampling methodology, meaning it does not hold every stock in the index but rather a representative sample. This approach aims to replicate the index’s performance while managing costs and liquidity. However, it also introduces tracking error, as the fund’s performance may deviate from the index due to the differences in holdings.

The fund’s expense ratio stands at 0.38%, which is relatively competitive for an international small-cap ETF. As of the latest data, SCJ has approximately $1.5 billion in assets under management, indicating a moderate level of investor interest. The fund’s liquidity is also noteworthy, with an average daily trading volume that allows for efficient buying and selling. The source directs readers to be aware, however, that the fund’s performance is subject to the risks inherent in the Japanese small-cap market, including economic volatility, currency fluctuations, and regulatory changes.

SCJ’s performance can be monitored using various charting tools, such as TradingView, which provides historical price data and technical analysis indicators. The fund’s prospectus and other regulatory filings are available on the SEC’s EDGAR database, offering transparency into its holdings, fees, and performance. Investors considering SCJ should carefully review these documents to understand the fund’s investment strategy, risks, and costs.