What Is the SCJ ETF? A Complete Guide to Returns, Expense Ratio, Holdings and Alternative ETFs
The iShares MSCI Japan Small-Cap ETF (ticker SCJ) tracks the MSCI Japan Small Cap Index with broad diversification. Key factors for investors include how its exposure differs from large-cap ETFs such as EWJ, its expense ratio and dividends, the yen exchange rate, and the outlook.
SubscribeWhat Is the iShares MSCI Japan Small-Cap ETF?
This is a passive ETF that tracks the MSCI Japan Small Cap Index, holding smaller Japanese companies weighted by market capitalization. It is used to complement Japan exposure that is typically concentrated in large caps.
It suits long-term investors who want diversified small-cap exposure within the Japanese market, distinct from large caps.
It is a passive (index-tracking) ETF managed by BlackRock (iShares).
How Does the iShares MSCI Japan Small-Cap ETF Invest?
| Item | Details |
|---|---|
| Tracking Index | MSCI Japan Small Cap Index |
| Management Style | Passive (index tracking) |
| Rebalancing Frequency | Quarterly |
| Dividend Frequency | Semiannual |
| Issuer | BlackRock (iShares) |
| Total Expense Ratio | 0.50% |
The fund holds the constituents of the MSCI Japan Small Cap Index in proportion to their market capitalization, tracking the performance of the Japanese small-cap segment as a whole. Its low concentration in individual stocks makes for broad diversification, and rebalancing is applied periodically according to the index rules.
- Broad diversification across Japanese small caps
- Exposure to domestic-demand and mid-sized companies, distinct from large-cap ETFs
iShares MSCI Japan Small-Cap ETF Size and Costs (AUM and Expense Ratio)
Assets under management (AUM) stand at $230.4M, and the total expense ratio is 0.50% per year.
Compared with EWJ, which offers large-cap Japan exposure, this fund covers the small-cap segment, so the nature of its exposure differs, and its wide diversification is a defining feature.
iShares MSCI Japan Small-Cap ETF Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeThe fund is affected by both the overall direction of the Japanese stock market and the yen exchange rate, and given the nature of small caps, there are periods when volatility is higher than for large caps. Recent trends have moved up and down with Japan's domestic economy and global risk appetite.
Fund flows continue in line with demand for Japan market diversification, and demand to complement large-cap-centered exposure forms one pillar of those flows. During periods of shifting risk appetite, small-cap fund flows tend to fluctuate relatively more.
iShares MSCI Japan Small-Cap ETF Pros and Cons
Broad small-cap diversification is its strength, while currency exposure and small-cap volatility work as drawbacks.
💪 Key Strengths
⚠️ Points to Watch
Alternative ETFs and Related Products to the iShares MSCI Japan Small-Cap ETF
EWJ, shown in the table, focuses on large caps in the same Japanese market, so its exposure differs from that of SCJ, which centers on small caps, making it a direct comparison. BBJP and FLJP are broad Japan ETFs with lower expense ratios. In addition, considering EWY, which invests in Korea, a neighboring market outside Japan, and DXJ, which applies a yen hedge, can widen your options on currency and regional exposure.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 EWJ | iShares MSCI Japan ETF | $90.39 | -1.2% | $23.5B | 0.49% | 3.77% | +8.2% |
 EWY | iShares MSCI South Korea ETF | $139.18 | -2.0% | $20.7B | 0.59% | 1.46% | +45.5% |
 BBJP | JPMorgan BetaBuilders Japan ETF | $73.31 | -1.2% | $18.8B | 0.19% | 4.83% | +6.1% |
 FLJP | Franklin FTSE Japan ETF | $38.65 | -1.1% | $4.1B | 0.09% | 4.37% | +7.8% |
 FLKR | Franklin FTSE South Korea ETF | $46.13 | -2.2% | $1.6B | 0.09% | 3.19% | +44.5% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
 CUB | Lionheart Holdings | 0.00% | $10.96 | +0.1% | $286.9M | 323.3 | - |
 OGN | Organon & Co | 0.00% | $13.89 | +0.3% | $3.6B | 18.1 | 0.58% |
 WATR | Air Water Ventures Ltd | 0.00% | $1.61 | +2.6% | $50.8M | 10.4 | - |
| BNS | Bank Of Nova Scotia | 0.00% | $92.63 | -0.8% | $114.1B | 16.8 | 3.48% |
| BNY | Bank Of New York Mellon Corp | 0.00% | $151.14 | -0.1% | $101.7B | 16.7 | 1.54% |
 SJT | San Juan Basin Royalty Trust | 0.00% | $4.22 | +16.9% | $196.7M | - | - |
 FOUR | Shift4 Payments Inc | 0.00% | $43.73 | -2.8% | $3.3B | 60.0 | 0.31% |
 FRBA | First Bank (NJ) | 0.00% | $19.85 | +0.1% | $491.4M | 11.5 | 1.96% |
 BMRC | Bank of Marin Bancorp | 0.00% | $28.65 | -0.3% | $464.5M | - | 3.49% |
iShares MSCI Japan Small-Cap ETF Investor Checkpoints
Here are the points to check before investing in SCJ. Given that it offers diversified Japanese small-cap exposure, it is wise to confirm in advance that its expense ratio, the yen exchange rate, small-cap volatility, and trading liquidity fit your investment goals before buying.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 💵 Expense Ratio | Check the cumulative cost impact over a long holding period | Annual fee applies |
| 💱 Exchange Rate | Impact on returns converted from yen and dollars | Unhedged |
| 📊 Diversification | Review concentration in individual stocks | Broadly diversified |
| 💧 Liquidity | Daily trading value and bid-ask spread | Needs verification |
Yen exchange rate movements and the volatility characteristic of small caps are the main variables for short-term returns. During periods of slowing domestic demand in Japan, small caps may see larger corrections than large caps.
It is a suitable choice for those who want diversified small-cap exposure within the Japanese market, distinct from large caps. If you need a currency hedge, you can consider DXJ alongside it, and if core large-cap exposure is the priority, EWJ.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
This article reflects information as of June 18, 2026.
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