WisdomTree Japan SmallCap Dividend Fund

DFJ

Market cap $311M

Solid growth and ongoing shareholder-friendly reforms are driving Japanese equity gains, keeping us overweight. We see the AI theme playing out globally.

Japanese small caps remain undervalued, with low PBRs and discounted PEs versus large caps. Corporate governance reforms are catalyzing price appreciation, especially in cash-rich, low PBR companies, with more financial optimization ahead. Activist investors and legal support are driving capital allocation improvements, but buybacks and higher payout ratios are still underutilized.

Berkshire's higher stakes in Mitsubishi and Mitsui spark a rally in Japan's trading houses. ETFs like FJP, EWJV, DFJ, SCJ, FLJH are likely to benefit.

Making its debut on 06/16/2006, smart beta exchange traded fund WisdomTree Japan SmallCap Dividend ETF (DFJ) provides investors broad exposure to the Asia-Pacific (Developed) ETFs category of the market.

Among APAC equity markets, Australia has a higher beta to oil prices while India, Indonesia and Thailand have lower betas. Domestic political uncertainties have been one main reason for the decoupling trend seen in Indonesia and Thailand.

Launched on 06/16/2006, the WisdomTree Japan SmallCap Dividend ETF (DFJ) is a smart beta exchange traded fund offering broad exposure to the Asia-Pacific (Developed) ETFs category of the market.

Japan's bond market is causing ripples across global financial markets, with rising long-dated government bond yields threatening to trigger capital flight from the United States and unwind the popular carry trade strategy. The carry trade is a strategy where investors borrow in low-yielding currencies like the yen to invest in higher-yielding assets abroad.

Small-caps participated in the May 12 rally facilitated by news that the U.S. and China are making progress on a trade deal. The Russell 2000 Index surged 3.52%.

Launched on 06/16/2006, the WisdomTree Japan SmallCap Dividend ETF (DFJ) is a smart beta exchange traded fund offering broad exposure to the Asia-Pacific (Developed) ETFs category of the market.

Japan's stock market is hitting new highs due to strong fiscal flows from government spending, current account surplus, and rising bank credit creation. Government spending at over 4% of GDP, a positive current account balance, and increasing bank credit creation are driving aggregate demand and asset market growth.