ETF Evaluator: iShares MSCI Japan Small-Cap ETF () Follow This ETF

iShares MSCI Japan Small-Cap ETF Overview

iShares MSCI Japan Small-Cap ETF (SCJ) is a passively managed International Equity Japan Stock exchange-traded fund (ETF). iShares launched the ETF in 2007.

The investment seeks to track the MSCI Japan Small Cap Index. The index measures the performance of equity securities of Japanese small-capitalization companies and represents approximately 14% of the free float-adjusted market capitalization of the Japan equity universe. It generally will invest at least 80% of assets in the component securities of its index and in investments that have economic characteristics that are substantially identical to the component securities of its index and may invest up to 20% of its assets in certain futures, options and swap contracts, cash and cash equivalents, as well as in securities not included in the index.

About iShares MSCI Japan Small-Cap ETF (SCJ)

There are 4 members of the management team with an average tenure of 4.40 years: Jennifer Hsui (2012), Peter Sietsema (2025), Matt Waldron (2025) and Steven White (2025). Management tenure is more important for actively managed ETFs than passive index ETFs.

The ETF has 2 primary benchmarks: MSCI ACWI Ex USA NR USD index with a weighting of 100% and MSCI Japan Small Cap NR USD index with a weighting of 100%. iShares MSCI Japan Small-Cap ETF has 797 securities in its portfolio. The top 10 holdings constitute 6.2% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a diversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.

iShares MSCI Japan Small-Cap ETF is part of the Equity global asset class and is within the International Equity ETF group. iShares MSCI Japan Small-Cap ETF has 99.7% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.0% There is 99.7% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). iShares MSCI Japan Small-Cap ETF has 0.4% of the portfolio in cash.

Assets Under Management

The fund has $252 million in total assets, which is below the $2 billion average for the Japan Stock category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

SCJ Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The iShares MSCI Japan Small-Cap ETF expense ratio is average compared to funds in the Japan Stock category. iShares MSCI Japan Small-Cap ETF has an expense ratio of 0.50%, which is 1% lower than its category average, making the fund expense ratio grade a C. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. iShares MSCI Japan Small-Cap ETF has a portfolio turnover rate of 17%, which indicates that it holds its assets around / 0.1 years. By way of comparison, the average portfolio turnover is 35% for the Japan Stock category.

Recently, in the month of July 2026, iShares MSCI Japan Small-Cap ETF returned -1.0%, which earned it a grade of D, as the Japan Stock category had an average return of 0.3%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.

iShares MSCI Japan Small-Cap ETF has a trailing yield of 2.77%, which is above the 2.67% category average. The fund normally distributes its income semi-annually and its capital gains annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

iShares MSCI Japan Small-Cap ETF Grades

Year to date, the ETF has returned 15.8%, 0.9 percentage points worse than the category, which translates into a grade of C. The fund has returned 28.7% over the past year (grade of F), 16.9% over the past three years (grade of D) and 7.9% per year over the past five years (grade of F) and 7.5% per year over the past 10 years (grade of F).

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