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Japan ETF (SCJ) Hits a 52-Week High


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For investors seeking momentum, iShares MSCI Japan Small-Cap (SCJ - ETF report) is probably on radar now. The fund just hit a 52-week high, which is up roughly 1% from its 52-week low price of $63.45/share.

But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed.

SCJ in Focus

SCJ focuses on acquiring small-cap Japanese stocks by following the MSCI Japan Small Cap Index. It holds 810 stocks in its basket. It maintains a well-diversified portfolio with key holdings in the industrials, consumer discretionary, consumer staples and IT. The fund charges investors 48 basis points a year in fees (see: all the Asia-Pacific (Developed) ETFshere).

Why the Move?

Bank of Japan’s (BOJ) surprise move to issue a zero interest-rate target for 10-year government bonds to counter deflationary threats had a significant positive impact on Japanese stock markets, which in turn boosted SCJ. The step  assured investors that BOJ will take necessary steps to boost the economy.           

More Gains Ahead?

Currently, SCJ has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook, so it is hard to get a handle on its future returns one way or the another. However, a positive weighted alpha of 6.37 hints at more gains. So there is definitely some promise for those who want to ride this surging ETF a little further.

Want more information on the world of ETFs?

Make sure to check out the podcast below where we discuss the investing landscape with Kevin O’Leary and Connor O’Brien of O’Shares Investments:

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