iShares MSCI Japan Small-Cap ETF (SCJ Quick QuoteSCJ - Free Report) is probably on the radar for investors seeking momentum. The fund just hit a 52-week high and has surged 26.5% from its 52-week low price of $88.08 per share.

Are more gains in store for this ETF? Let us take a quick look at the fund and the near-term outlook to get a better idea of where it might head.

SCJ in Focus

The underlying MSCI Japan Small Cap Index targets 40% of the eligible small cap universe within each industry group in the MSCI Japan Index, which consists of stocks traded primarily on the Tokyo Stock Exchange. The product charges 50 basis points (bps) in annual fees.

Why the Move?

Small caps typically generate a much larger share of revenue domestically than large-cap exporters. Small caps ETFs are a good way to bet on Japan’s shift from deflation to a more normal inflation-and-wage cycle.

More Gains Ahead?

SCJ might continue its strong performance in the near term, with a positive weighted alpha of 59.21 (per Barchart.com), which hints at a rally.